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One important consideration for tech stocks is how easily the companies can pay their ongoing capital expenditures. Operating cash flow is a likely source for this payment, so the ratio of operating cash flow to capital expenditures can give an idea of whether the firm’s fixed asset expenses are reasonably covered - with cash to spare.

We ran a screen on the largest cap tech stocks (with market caps in excess of $10 billion) for those that have high trailing-twelve-month operating cash flow relative to capital expenditures (ratios above 5). The final list of 10 is below.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.



Do you think these companies have sustainable operations? Use this list as a starting-off point for your own analysis.

List sorted by TTM operating CF/capital expenditures.

1. Altera Corp. (ALTR): Semiconductor Industry. Market cap of $14.20B. TTM operating cash flow/capital expenditures at 49.07. After a solid performance over the last year, ALTR has pulled back during recent sessions. The stock is 6.66% below its SMA20 and 4.79% below its SMA50, but remains 15.99% above its SMA200. The stock has gained 87.57% over the last year.



2. Oracle Corp. (ORCL): Application Software Industry. Market cap of $160.06B. TTM operating cash flow/capital expenditures at 22.56. The stock has performed poorly over the last month, losing 11.2%.



3. Activision Blizzard, Inc. (ATVI):
Multimedia and Graphics Software Industry. Market cap of $12.96B. TTM operating cash flow/capital expenditures at 14.42. It has been a rough couple of days for the stock, losing 5.19% over the last week.

4. Applied Materials Inc. (AMAT):
Semiconductor Equipment and Materials Industry. Market cap of $16.85B. TTM operating cash flow/capital expenditures at 12.83. The stock is currently stuck in a downtrend, trading 8.17% below its SMA20, 13.79% below its SMA50, and 8.03% below its SMA200. The stock has performed poorly over the last month, losing 14.63%.

5. SanDisk Corp. (SNDK):
Semiconductor Industry. Market cap of $10.14B. TTM operating cash flow/capital expenditures at 11.99. The stock might be undervalued at current levels, with a PEG ratio at 0.64, and P/FCF ratio at 7.27. It has been a rough couple of days for the stock, losing 6.28% over the last week.

6. Microsoft Corporation (MSFT):
Application Software Industry. Market cap of $202.05B. TTM operating cash flow/capital expenditures at 10.79. MSFT might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 10.51. The stock has lost 1.84% over the last year.

7. ASML Holding NV (ASML): Semiconductor Equipment and Materials Industry. Market cap of $16.34B. TTM operating cash flow/capital expenditures at 10.61. The stock has gained 31.56% over the last year.

8. Broadcom Corp. (BRCM): Semiconductor Industry. Market cap of $18.18B. TTM operating cash flow/capital expenditures at 10.58. The stock has gained 2.6% over the last year.

9. QUALCOMM Incorporated (QCOM): Communication Equipment Industry. Market cap of $93.28B. TTM operating cash flow/capital expenditures at 9.39. The stock has gained 62.08% over the last year.

10. Danaher Corp. (DHR): Conglomerates Industry. Market cap of $34.76B. TTM operating cash flow/capital expenditures at 9.31. The stock has gained 33.38% over the last year.

*Operating CF/Capital Expenditures data sourced from Screener.co, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 10 Large-Cap Tech Stocks With Strong Cash Coverage