FCF Cow Screen

Cash Flow Stock Screen

>

Screening for stocks with increasing free cash flow (FCF) and reduction in debt.

This screen is labeled "FCF cows" as it seeks to find stable, cash rich companies growing their FCF, yet selling at a cheap multiple to FCF.

The standard definiton of FCF is used.

FCF = Cash from Operations - Capex

Cash is king and the more FCF a company can generate and reduce debt, the higher the intrinsic value of the company becomes.

Read more: FCF stock screen backtest