Cash may be king but for stocks the Price to Free Cash Flow (P/FCF) multiple is a good representation of value. The multiple tracks the premium paid for a stock per each dollar of cash flow. For the stocks on our list today, the multiples used were annualized last fiscal quarter free cash flow figures. It is interesting to note that the average multiple amongst FCF positive large cap U.S. equities is 30x.
Ford Motor Co (NYSE: F) – $14.28
Auto & Truck Manufacturers
Ford Motor Company (Ford) manufactures or distributes automobiles across six continents. The Company operates in two sectors: Automotive and Financial Services. Automotive sector includes North America, South America, Europe, Middle East & Africa, and Asia Pacific segments. Financial Services sector includes Ford Motor Credit Company and Other Financial Services segments.
- Market Cap: $56,870,470,393
- Revenues (LTM): $145,177,000,000
- P/FCF (LFQ annualized): 3.1x
- FCF (LFQ): $4,630,000,000
Calpine Corp. (NYSE: CPN) – $92.86
Electric Utilities
Calpine Corporation (Calpine) is a wholesale power generator. The Company owns and operates natural gas-fired and geothermal power plants in North America. It sells wholesale power, steam, capacity, renewable energy credits and ancillary services to its customers, which include utilities, independent electric system operators, industrial and agricultural companies, retail power providers, municipalities, power marketers and others.
- Market Cap: $5,245,575,959
- Revenues (LTM): $6,975,000,000
- P/FCF (LFQ annualized): 3.3x
- FCF (LFQ): $397,000,000
Related: See Our List of U.S. High Yield Dividend Growers
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Monsanto Co (NYSE: MON) – $12.53
Fishing & Farming
Monsanto Company (Monsanto) is a provider of agricultural products for farmers. The Company’s seeds, biotechnology trait products, and herbicides provide farmers with solutions that improve productivity, reduce the costs of farming, and produce better foods for consumers and better feed for animals. It manages business in two segments: Seeds and Genomics, and Agricultural Productivity.
- Market Cap: $41,463,449,450
- Revenues (LTM): $15,001,000,000
- P/FCF (LFQ annualized): 3.6x
- FCF (LFQ): $2,861,000,000
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FirstEnergy Corp. (NYSE: FE) – $29.48
Electric Utilities
FirstEnergy Corp. is a holding company that operates through three segments: Regulated Distribution, Regulated Transmission and Competitive Energy Services (CES). The Company’s principal subsidiaries include Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Metropolitan Edison Company, Pennsylvania Electric Company, FirstEnergy Service Company, FirstEnergy Solutions Corp., Allegheny Energy Supply Company, LLC, among others.
- Market Cap: $12,318,976,692
- Revenues (LTM): $14,968,000,000
- P/FCF (LFQ annualized): 3.9x
- FCF (LFQ): $784,000,000
AES Corp. (NYSE: AES) – $10.07
Electric Utilities
The AES Corporation (AES) is a holding company that operates a portfolio of electricity generation and distribution businesses. The Company is organized into six market-oriented Strategic Business Units (SBUs): the United States, Andes (Chile, Colombia and Argentina), Brazil, MCAC (Mexico, Central America and Caribbean), Europe (formerly EMEA) and Asia. Within these six SBUs, the Company has two lines of business: generation and utilities.
- Market Cap: $6,661,335,394
- Revenues (LTM): $15,695,000,000
- P/FCF (LFQ annualized): 4.3x
- FCF (LFQ): $389,000,000
