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If you prefer to invest in companies with strong cash flows, you may find this article to be an interesting starting point for your own research.

To construct this list we looked for stocks with the three characteristics:

  • Market cap $300M
  • Beta between 0 and 0.5
  • And significant levered free cash flow relative to current market cap

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.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 (SPY) index over the last month.

Considering this information, which of these stocks do you find most attractively priced?

1. PartnerRe Ltd. (PRE): Property & Casualty Insurance Industry. Market cap of $4.72B. Beta at 0.44. Levered free cash flow/market cap 25.26%, given the TTM levered free cash flow of $1.20B and the market cap of $4.75B. The stock has performed poorly over the last month, losing 10.43%.

2. National Beverage Corp. (FIZZ): Beverages Industry. Market cap of $624.11M. Beta at 0.44. Levered free cash flow/market cap 22.51%, given the TTM levered free cash flow of $142.58M and the market cap of $633.31M. The stock is a short squeeze candidate, with a short float at 5.23% (equivalent to 19.49 days of average volume). The stock has gained 29.31% over the last year.

3. Calumet Specialty Products Partners LP (CLMT): Oil & Gas Refining & Marketing Industry. Market cap of $856.86M. Beta at 0.3. Levered free cash flow/market cap 20.1%, given the TTM levered free cash flow of $173.58M and the market cap of $863.60M. The stock has gained 33.46% over the last year.

4. Apollo Group Inc. (APOL): Education & Training Services Industry. Market cap of $6.14B. Beta at 0.15. Levered free cash flow/market cap 15.41%, given the TTM levered free cash flow of $961.49M and the market cap of $6.24B. The stock has lost 8.93% over the last year.

5. Comtech Telecommunications Corp. (CMTL): Communication Equipment Industry. Market cap of $615.06M. Beta at 0.42. Levered free cash flow/market cap 15.23%, given the TTM levered free cash flow of $94.90M and the market cap of $623.11M. The stock is a short squeeze candidate, with a short float at 9.54% (equivalent to 9.34 days of average volume). It's been a rough couple of days for the stock, losing 13.03% over the last week.

6. RLI Corp. (RLI): Property & Casualty Insurance Industry. Market cap of $1.24B. Beta at 0.41. Levered free cash flow/market cap 13.41%, given the TTM levered free cash flow of $167.65M and the market cap of $1.25B. The stock is a short squeeze candidate, with a short float at 9.21% (equivalent to 22.81 days of average volume). The stock has gained 25.14% over the last year.

7. Infinity Property and Casualty Corp. (IPCC): Property & Casualty Insurance Industry. Market cap of $646.54M. Beta at 0.45. Levered free cash flow/market cap 13.1%, given the TTM levered free cash flow of $85.38M and the market cap of $651.99M. The stock has gained 12.91% over the last year.

8. The Chubb Corporation (CB): Property & Casualty Insurance Industry. Market cap of $18.58B. Beta at 0.49. Levered free cash flow/market cap 12.67%, given the TTM levered free cash flow of $2.36B and the market cap of $18.63B. The stock has gained 26.51% over the last year.

9. Investors Real Estate Trust (IRET): REIT. Market cap of $741.36M. Beta at 0.37. Levered free cash flow/market cap 11.76%, given the TTM levered free cash flow of $87.65M and the market cap of $745.32M. The stock has gained 12.24% over the last year.

10. ProAssurance Corporation (PRA): Property & Casualty Insurance Industry. Market cap of $2.08B. Beta at 0.41. Levered free cash flow/market cap 11.72%, given the TTM levered free cash flow of $244.87M and the market cap of $2.09B. The stock has gained 15.71% over the last year.

11. Enersis S.A. (ENI): Foreign Utilities Industry. Market cap of $14.20B. Beta at 0.49. Levered free cash flow/market cap 11.03%, given the TTM levered free cash flow of $1.57B and the market cap of $14.24B. The stock has gained 13.16% over the last year.

12. Arch Capital Group Ltd. (ACGL): Property & Casualty Insurance Industry. Market cap of $4.33B. Beta at 0.47. Levered free cash flow/market cap 10.81%, given the TTM levered free cash flow of $479.05M and the market cap of $4.43B. The stock has gained 33.% over the last year.

13. Village Super Market Inc. (VLGEA): Grocery Stores Industry. Market cap of $335.10M. Beta at 0.36. Levered free cash flow/market cap 10.51%, given the TTM levered free cash flow of $36.23M and the market cap of $344.69M. The stock has lost 0.48% over the last year.

14. Cephalon Inc. (CEPH): Biotechnology Industry. Market cap of $6.08B. Beta at 0.39. Levered free cash flow/market cap 10.37%, given the TTM levered free cash flow of $631.75M and the market cap of $6.09B. The stock has gained 38.58% over the last year.

15. Coca-Cola Bottling Co. Consolidated (COKE): Beverages Industry. Market cap of $611.36M. Beta at 0.48. Levered free cash flow/market cap 10.37%, given the TTM levered free cash flow of $64.91M and the market cap of $625.98M. The stock has gained 33.59% over the last year.

16. ICF International Inc. (ICFI): Management Services Industry. Market cap of $485.80M. Beta at 0.45. Levered free cash flow/market cap 10.21%, given the TTM levered free cash flow of $50.54M and the market cap of $495.09M. The stock has gained 5.01% over the last year.

*Data sourced from Yahoo! Finance and Finviz.

Source: Value Ideas: 16 Low Beta Stocks Generating Significant Levered Free Cash Flow