5 Bargain Stocks With High Free Cash Flow Yields
Hed 5 Free Cash flow Powerhouses NEW YORK (Stockpickr) -- So many investors focus on earnings per share or EBITDA (earnings before interest, taxes, deductions and amortization) as a key measure of a company's profitability. But it's an open secret that these numbers can be fudged by accountants that are looking to "meet their number." Besides, those profits may not mean much if a company has little left over after paying for capital spending.
That's why it pays to look at free cash flow, which is operating cash flow minus capital expenditures. Positive free cash flow means real money is coming in the door, fattening up the balance sheet in the process.
>>6 Dividend Stocks With Strong Payout Ratios
Yet in the current tough market environment, even companies with a track record of consistent solid FCF are being shunned. That provides investors with the rare chance to snap up these stocks while they are sporting FCF yields (free cash flow divided by enterprise value) in excess of 10%.
With that in mind, here's a look at five FCF bargains. >>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now!Select the service that is right for you!
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