Free cash flow is measured as a company’s cash inflow/outflow from regular business operations. This figure takes into account the cash flow from operations, and adjusts it for non-cash items (depreciation, asset write downs, stock-based compensation), changes in working capital, and the capital expenditure. This figure is a good proxy for the cash flow that is available to equity shareholders. As such, to see this amount grow by a cumulative average 3-year growth rate of more than 70% is very exciting, and this applies to the companies on our list.
Goldman Sachs Group Inc. (NYSE: GS) – $205.09
Investment Banking & Brokerage Services
The Goldman Sachs Group, Inc. is a bank holding company and a financial holding company. Goldman Sachs is a global investment banking, securities and investment management company that provides a range of financial services to a diversified client base that include corporations, financial institutions, Governments and individuals.
- Market Cap: $89,041,564,494
- Free Cash Flow (2014): $7,282,000,000
- FCF 3-year CAGR: 229.3%
- Price Change (3 years): 103.7%
Voya Financial Inc. (NYSE: VOYA) – $45.35
Life & Health Insurance
Voya Financial, Inc. is a retirement, investment and insurance company that provides retirement services, annuities, investment management services, mutual funds, life insurance, group insurance and supplemental health products, guaranteed investment contracts and funding agreements. The Company provides its principal products and services in three ongoing businesses: Retirement Solutions, Investment Management and Insurance Solutions.
- Market Cap: $10,369,736,716
- Free Cash Flow (2014): $2,585,200,000
- FCF 3-year CAGR: 149.8%
- Price Change (3 years): 118.4%*
SBA Communications Corp. (NASDAQ: SBAC) – $121.48
Wireless Telecommunications Services
SBA Communications Corporation is an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications. The Company operates through two segments, namely site leasing and site development. The Company’s primary business line is its site leasing business. In its site leasing business, it leases antenna space to wireless service providers on towers that it owns or operates, and manage rooftop and tower sites for property owners under various contractual arrangements.
- Market Cap: $15,629,040,216
- Free Cash Flow (2014): $390,654,000
- FCF 3-year CAGR: 92.1%
- Price Change (3 years): 104.0%
CoStar Group Inc. (NASDAQ: CSGP) – $194.55
Real Estate Services
CoStar Group, Inc. (CoStar) is a provider of information, analytics and online marketplaces to the commercial real estate industry. The Company has five flagship brands: CoStar, LoopNet, Apartments.com, BizBuySell and LandsofAmerica. CoStar delivers its commercial real estate content to the United States customers primarily through an integrated suite of online service offerings that includes information about space available for lease, comparable sales information, information about properties for sale, tenant information, Internet marketing services, analytical capabilities, information for clients’ Websites, information about industry professionals and their business relationships, data integration and industry news.
- Market Cap: $6,427,536,861
- Free Cash Flow (2014): $87,797,000
- FCF 3-year CAGR: 91.5%
- Price Change (3 years): 139.6%
Hyatt Hotels Corp. (NYSE: H) – $52.61
Hotels, Motels & Cruise Lines
Hyatt Hotels Corporation is a hospitality company that develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties, consisting of full service hotels, select service hotels, resorts and other properties, including timeshare, fractional and other forms of residential and vacation properties. The Company’s portfolio consists of approximately 587 properties (155,265 rooms and units). The Company’s service hotels and resorts operate under five brands, which include Park Hyatt, Andaz, Hyatt, Grand Hyatt and Hyatt Regency.
- Market Cap: $7,423,455,141
- Free Cash Flow (2014): $447,000,000
- FCF 3-year CAGR: 73.9%
- Price Change (3 years): 37.6%
*Price change from Inception (May 2, 2013)
