Companhia Siderurgica: Limited Tariffs And Vertical Integration Could Multiply FCF
Companhia Siderurgica: Limited Tariffs And Vertical Integration Could Multiply FCF
Technip Energies Plans To Generate Half Its Market Cap In FCF By 2029
Technip Energies N.V. excels in LNG, hydrogen, and ethylene construction, with strong free cash flow and a promising future in CO2 management and green hydrogen. THNPY reported a 10% revenue increase and a 33% higher EPS in the first nine months, validating my initial investment thesis. Technip Energies' 2025 and 2028 guidance shows significant revenue and EBITDA growth, with a cumulative free cash flow of 2.2-2.6B EUR for 2024-2028.
Newell Brands: Large Transformation, Stock Repurchases, Positive FCF, And Significantly Undervalued
Newell Brands is undergoing a transformation with new real estate plans and centralization of tech and sales teams, aiming for efficiency improvements and economies of scale. Despite recent lower EPS figures, the company's proven business model and positive cash flow suggest future growth, supported by restructuring and asset optimization. NWL's stock repurchases at $22 and $25.86 indicate undervaluation at close to $10 per share, with a target valuation of $14-$15 per share.
Anheuser-Busch InBev: A Mature Stable Business With An 8.5% FCF Yield
AB InBev looks like a good relative value opportunity down 25.8% from 52-week highs and now giving a 8.50% free cash flow yield from a stable mature company. The company's Q3 results show 2.1% revenue growth despite a 2.4% volume decline, driven by a 4.6% price increase. The company posted a 7.1% YoY increase in normalized EBITDA, with disciplined SG&A costs and EBITDA margin expansion to 36.0%.
Backward-Looking FCF ETFs May Have Missed Vistra and NRG
Traditional free cash flow (FCF) ETFs may have missed out on investing in Vistra (VST) and NRG Energy (NRG) before the two stocks saw impressive growth. NRG and Vistra are high-performing stocks that have benefited from the surge in electricity demand.
First Commonwealth to Expand Footprint in Cincinnati With New Buyout
FCF's acquisition of CenterGroup will strengthen the former's commercially focused strategy in the Cincinnati market by adding a 65% business client base.
This FCF ETF Can Work with QQQ to Diversify Returns
Investors may be able to enhance a portfolio's risk-adjusted returns by pairing a free cash flow (FCF) ETF with their growth exposure. FCF represents the cash a company generates after accounting for cash payments to support operations and maintain its capital assets.
Cable One: 15% Equity FCF Yield, Below Replacement Value, Inflecting Fundamentals
On a near 15% equity free cash flow yield, it seems well discounted in the CABO stock. Advantaged/less competitive rural network, cheaper to buy than compete with. MBI transaction, a bad deal but overly discounted.
Conagra Brands: 11% FCF Yield, Attractive At A 10-11x P/E Heading Into Earnings
Consumer Staples stocks, including Conagra Brands, have underperformed relative to the S&P 500, with depressed P/E multiples among many blue-chip names. I rate Conagra Brands as a buy, seeing it undervalued despite technical chart issues and recent disappointing quarterly earnings. Key risks include rising interest rates, food commodity inflation, and a weaker global macroeconomic environment, but CAG's high free cash flow yield is a positive.
Teleperformance: Very Interesting Trends, A Continued 'Buy' For Me
Teleperformance stock is undervalued, trading at €89/share with a P/E of 6x, despite strong fundamentals and a diversified revenue stream across multiple sectors. The company has shown consistent growth, with 3% pro forma and 26.7% reported in Q3'24, and maintains a BBB rating with solid financials. Teleperformance's FCF is robust, enabling dividends, strategic M&As, and share buybacks, contributing to a levered FCF yield of 18.8%.
VictoryShares Launches GFLW, a Growth-Oriented FCF ETF
VictoryShares launched its newest free cash flow1 (FCF) ETF today with a focus on growth companies. The VictoryShares Free Cash Flow Growth ETF (GFLW) expands on the existing FCF ETF suite by delivering a portfolio of high-quality, profitable, large-cap growth companies with the potential to compound FCF over time.
Pure Storage Earnings: Hyperscaler Deal Isn't Enough For 36x Forward FCF
Pure Storage's stock surged 20% post-earnings, but I remain neutral due to concerns about fiscal 2026 growth rates and a 36x forward free cash flow valuation. The company's innovative flash-based storage solutions and strong net cash position are commendable, but the competitive landscape and reliance on a hyperscaler add risk. Fiscal 2026 growth projections are uncertain, with potential muted growth rates raising questions about investor enthusiasm and valuation sustainability.
