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The saying goes "cash is king". However, it would probably be more accurate to say "cash flow is king". Cash flow may be the most reliable measure of what a company is earning. Cash flow is a measure that is not easily manipulated. Free cash flow (FCF) is defined as operating cash flow - capital expenditures. Companies that have high free cash flow levels are often financially healthy companies.

For this article, I have identified sixteen companies that are growing free cash flow at a five year compound annual growth rate (CAGR) of 50% or higher. In addition, I wanted to make sure that these companies were growing revenue as well. I narrowed the list to companies that are growing revenue at a CAGR of 25% or higher. Lastly, I have only included companies with a market cap of at least $3 billion.

Apple (AAPL)

AAPL
Market Cap $314.6 B
5Year CAGR FCF 62%
5Year CAGR Revenue 36%
Forward P/E 14.84

Alere Inc. (ALR)
ALR
Market Cap $3.3 B
5Year CAGR FCF 95%
5Year CAGR Revenue 39%
Forward P/E 14.51

Atheros Communications Inc. (ATHR)
ATHR
Market Cap $3.3 B
5Year CAGR FCF 59%
5Year CAGR Revenue 38%
Forward P/E 20.84

Bucyrus International Inc. (BUCY)
BUCY
Market Cap $7.4 B
5Year CAGR FCF 75%
5Year CAGR Revenue 45%
Forward P/E 16.53
*Bucyrus has agreed to be taken over by Caterpillar (CAT)

Celgene Corp (CELG)
CELG
Market Cap $26.5 B
5Year CAGR FCF 182%
5Year CAGR Revenue 47%
Forward P/E 16.92

Hologic Inc (HOLX)
HOLX
Market Cap $5.8 B
5Year CAGR FCF 66%
5Year CAGR Revenue 41%
Forward P/E 18.07

Infosys Technologies Ltd. (INFY)
INFY
Market Cap $41.9 B
5Year CAGR FCF 65%
5Year CAGR Revenue 56%
Forward P/E 28.08

Intercontinental Exchange Inc. (ICE)
ICE
Market Cap $8.8 B
5Year CAGR FCF 66%
5Year CAGR Revenue 49%
Forward P/E 18.33
*Intercontinental Exchange and Nasdaq OMX (NDAQ) have made a joint offer to buy NYSE Euronext (NYX)

Intuitive Surgical Inc. (ISRG)
ISRG
Market Cap $13.6 B
5Year CAGR FCF 61%
5Year CAGR Revenue 44%
Forward P/E 31.53

LKQ Corp. (LKQX)
LKQX
Market Cap $3.5 B
5Year CAGR FCF 54%
5Year CAGR Revenue 35%
Forward P/E 17.69

Mercadolibre Inc. (MELI)
MELI
Market Cap $3.8 B
5Year CAGR FCF 94%
5Year CAGR Revenue 50%
Forward P/E 52.59

MetroPCS Communications Inc. (PCS)
PCS
Market Cap $5.8 B
5Year CAGR FCF 111%
5Year CAGR Revenue 31%
Forward P/E 16.37

Nuance Communications Inc. (NUAN)
NUAN
Market Cap $5.9 B
5Year CAGR FCF 137%
5Year CAGR Revenue 36%
Forward P/E 14.92

Priceline.com Inc. (PCLN)
PCLN
Market Cap $25.4 B
5Year CAGR FCF 71%
5Year CAGR Revenue 26%
Forward P/E 27.86

WebMD Health Corp (WBMD)
WBMD
Market Cap $3.1 B
5Year CAGR FCF 54%
5Year CAGR Revenue 27%
Forward P/E 42.72

Williams Partners L.P. (WPZ)
WPZ
Market Cap $15.1 B
5Year CAGR FCF 50%
5Year CAGR Revenue 62%
Forward P/E 15.77

This search for growing free cash flow and growing revenues yielded 16 names of mostly quality organizations. Although these are not recommendations, there are several names on the list I like. Apple is an obvious favorite for many. The company continues to produce high demand consumer electronics. I also like MetroPCS, as it may become a takeover candidate whether or not the AT&T (T) buyout of T-Mobile happens. I am also bullish on Williams Partners. The master limited partnerships pay excellent yields and hold tax advantages. Williams yields 5.42%.

Cash flow is an important metric for any stock evaluation. These companies represent an excellent starting point for further research.

Source: 16 Companies Growing Cash Flow and Revenue