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Cash flow growth is arguably one of the most important considerations in the financial analysis of a company. While earnings and net worth are subject to management estimates, cash flow is very difficult to alter.

We wanted to search for companies exhibiting positive trends in cash flow growth. We began by screening for stocks rallying today above their 20-day, 50-day, and 200-day moving averages while remaining significantly undervalued to their mean analyst target price.

Although target price is upwardly biased, a steep discount from this number can indicate an undervalued opportunity.

From this universe, we searched for those companies that also had a high compound annual growth rate (CAGR) in free operating cash flow above 20% for the past 3 years. These companies also have higher Earnings before interest, taxes, depreciation and amortization (EBITDA) than debt for the last year.

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 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will keep rallying? Use this list as a starting-off point for your own analysis.

List sorted by 3-year CAGR of free operating cash flow.

1. Cornerstone Therapeutics Inc. (CRTX): Biotechnology Industry. Market cap of $204.49M. The stock is trading 5.81% above its 20-day moving average, 12.97% above its 50-day MA, and 28.05% above its 200-day MA. 3-year CAGR of free operating cash flow at 183.26%. Last year EBITDA at $22.67M vs. total debt at $0.23M. Current price at $7.88 vs. target price at $10.50 (implies a potential upside of 33.25%). The stock has gained 24.88% over the last year.

2. Nanometrics Incorporated (NANO): Scientific & Technical Instruments Industry. Market cap of $383.23M. The stock is trading 2.61% above its 20-day moving average, 5.24% above its 50-day MA, and 12.21% above its 200-day MA. 3-year CAGR of free operating cash flow at 156.54%. Last year EBITDA at $45.72M vs. total debt at $10.04M. Current price at $16.86 vs. target price at $21.00 (implies a potential upside of 24.56%). The stock has gained 54.4% over the last year.

3. Tennant Company (TNC): Diversified Machinery Industry. Market cap of $732.68M. The stock is trading 5.09% above its 20-day moving average, 0.92% above its 50-day MA, and 4.26% above its 200-day MA. 3-year CAGR of free operating cash flow at 120.54%. Last year EBITDA at $58.33M vs. total debt at $30.83M. Current price at $38.28 vs. target price at $46.00 (implies a potential upside of 20.17%). The stock has gained 12.82% over the last year.

4. GP Strategies Corp. (GPX): Education & Training Services Industry. Market cap of $249.59M. The stock is trading 7.43% above its 20-day moving average, 7.81% above its 50-day MA, and 24.54% above its 200-day MA. 3-year CAGR of free operating cash flow at 65.91%. Last year EBITDA at $27.02M vs. total debt at $0M. Current price at $13.29 vs. target price at $16.58 (implies a potential upside of 24.78%). The stock has gained 75.1% over the last year.

5. Applied Industrial Technologies, Inc. (AIT): Industrial Equipment Wholesale Industry. Market cap of $1.45B. The stock is trading 0.89% above its 20-day moving average, 0.2% above its 50-day MA, and 6.68% above its 200-day MA. 3-year CAGR of free operating cash flow at 57.59%. Last year EBITDA at $131.67M vs. total debt at $75.00M. Current price at $34.18 vs. target price at $45.50 (implies a potential upside of 33.12%). The stock is a short squeeze candidate, with a short float at 5.07% (equivalent to 6.45 days of average volume). The stock has gained 34.14% over the last year.

6. MAXIMUS, Inc. (MMS): Business Services Industry. Market cap of $1.39B. The stock is trading 1.26% above its 20-day moving average, 0.2% above its 50-day MA, and 14.39% above its 200-day MA. 3-year CAGR of free operating cash flow at 56.68%. Last year EBITDA at $125.75M vs. total debt at $1.41M. Current price at $80.14 vs. target price at $100.50 (implies a potential upside of 25.41%). The stock has gained 35.19% over the last year.

7. Riverbed Technology, Inc. (RVBD): Networking & Communication Devices Industry. Market cap of $5.35B. The stock is trading 2.01% above its 20-day moving average, 0.77% above its 50-day MA, and 5.54% above its 200-day MA. 3-year CAGR of free operating cash flow at 54.78%. Last year EBITDA at $76.15M vs. total debt at $0M. Current price at $34.88 vs. target price at $42.00 (implies a potential upside of 20.41%). The stock has had a couple of great days, gaining 9.24% over the last week.

8. KapStone Paper and Packaging Corporation (KS): Paper & Paper Products Industry. Market cap of $736.91M. The stock is trading 5.77% above its 20-day moving average, 0.69% above its 50-day MA, and 4.78% above its 200-day MA. 3-year CAGR of free operating cash flow at 34.28%. Last year EBITDA at $113.95M vs. total debt at $111.69M. Current price at $15.94 vs. target price at $20.08 (implies a potential upside of 25.99%). The stock has had a couple of great days, gaining 9.03% over the last week.

9. Continucare Corp. (CNU): Specialized Health Services Industry. Market cap of $289.21M. The stock is trading 42.78% above its 20-day moving average, 33.89% above its 50-day MA, and 34.54% above its 200-day MA. 3-year CAGR of free operating cash flow at 33.39%. Last year EBITDA at $39.02M vs. total debt at $0M. Current price at $4.77 vs. target price at $6.00 (implies a potential upside of 25.79%). The stock has had a couple of great days, gaining 11.71% over the last week.

10. Computer Task Group Inc. (CTGX): Information Technology Services Industry. Market cap of $247.55M. The stock is trading 6.04% above its 20-day moving average, 0.09% above its 50-day MA, and 17.02% above its 200-day MA. 3-year CAGR of free operating cash flow at 31.19%. Last year EBITDA at $1.72B vs. total debt at $0M. Current price at $13.41 vs. target price at $17.00 (implies a potential upside of 26.77%). The stock has had a couple of great days, gaining 12.5% over the last week.

11. Polaris Industries, Inc. (PII): Recreational Vehicles Industry. Market cap of $3.67B. The stock is trading 4.03% above its 20-day moving average, 4.6% above its 50-day MA, and 32.04% above its 200-day MA. 3-year CAGR of free operating cash flow at 24.16%. Last year EBITDA at $270.38M vs. total debt at $200.00M. Current price at $106.73 vs. target price at $128.89 (implies a potential upside of 20.76%). The stock has had a couple of great days, gaining 7.02% over the last week.

*Free operating cash flow data, EBITDA, debt, and price data sourced from Screener.co, all other data sourced from Finviz.

Source: 11 Rallying, Undervalued Stocks With High Cash Flow Growth, Low Debt