Five Stocks With Great Free Cash Flow Yields
Bed, Bath & Beyond
Looking at Bed, Bath & Beyond's (BBBY) average free cash flow over the past five years can be a bit deceiving, as free cash flow has averaged around $550 million. Yet over the past three years, its average free cash flow has been has been a more robust $830 million. That compares quite favorably to its current $12 billion market value, revealing a 7% free cash flow yield, one of the highest figures among major retailers. With shares falling nearly $20 from their late-June highs (to a recent $57), investors may give this free cash flow powerhouse a fresh look as the consumer economy improves.
Global Payments
Electronic payments processor Global Payments (GPN) got a black eye this spring when it admitted that thousands of consumer files may have been stolen. Shares took a quick hit and have remained lower, even as the negative publicity has receded without major ramifications for the company.
Investors that dumped the stock in the spring may have overlooked just how financially impressive this company is. Global Payments sports an enterprise value of around $3 billion, even though it typically generates more than $500 million in annual free cash flow. (That figure was actually negative in the most recent fiscal year due to some accounting issues.) The company is once again firmly in the black in the current fiscal year. Analysts at Citigroup predict that free cash flow will exceed $300 million in fiscal 2013 and 2014, and top $400 million by fiscal 2015. That compares quite favorably to its $3 billion market value.Follow Stockpickr on Twitter and become a fan on Facebook.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
