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Many investors believe that a company’s free cash flow is one of the more important fundamental metrics in evaluating an equity investment. Some have argued that Wall Street’s focus is on revenue and earnings, which are more easily manipulated through accounting, without direct concern for calculating the actual money that a business is generating.
Free cash flow (FCF) is operating cash flow minus capital expenditures. FCF is the cash that a company made after paying out the money required to maintain and/or expand the business. Free cash flow enables a company to pursue acquisitions and growth initiatives, among other options. FCF may also allow a company to initiate or increase dividends.
I started this screen for strong FCF equities by limiting it to U.S. large-cap (market valuations of over $10 billion) companies in the financial sector. I screened for only those that have 5% earnings per share growth over the past five years and a current price to FCF of fewer than 10. Others may meet these criteria.

Ticker
Company
Industry
P/E
Market Cap
P/FCF
AFLAC Inc.
Accident & Health Insurance
10.45
$21.74 B
2.96
Ameriprise Financial Inc.
Asset Management
13.22
$13.80 B
8.68
American Express Company
Mortgage Investment
13.41
$57.88 B
9.79
Annaly Capital Management, Inc.
7.93
$14.95 B
1.21
The Travelers Companies, Inc.
Property & Casualty Insurance
7.99
$24.56 B
9.84
While on its own, free cash flow is likely insufficient to base an investment decision upon, it is an important metric and one that is rarely provided. Such information can help you get a greater understanding of the fundamentals of businesses and identify proper investments.
Disclosure: I am long NLY.
Source: 5 Large-Cap Financials With Strong Free Cash Flow