Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Cash-flow analysis is one of the most important aspects of evaluating companies – although earnings can sometimes deviate from economic reality, it is very difficult to manipulate cash holdings. Cash is also what keeps a company afloat.

We ran a screen on low-debt companies with good corporate governance policies. RiskMetrics Group gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights. We screened for companies that received “low risk” ratings on at least three of the four corporate governance areas covered by RiskMetrics.

We then screened for companies with high growth in operating cash flow/common equity, comparing the trailing-twelve-month ratio to the company’s five-year average.

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 companies are being run well? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. Visa, Inc. (NYSE:V): Business Services Industry. Market cap of $68.14B. TTM operating cash flow/common equity at 0.15 vs. 5-year average at 0.08. MRQ total debt to assets at 0.00. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock has gained 16.49% over the last year.

2. Motorola Solutions, Inc. (NYSE:MSI):
Communication Equipment Industry. Market cap of $14.46B. TTM operating cash flow/common equity at 0.19 vs. 5-year average at 0.11. MRQ total debt to assets at 0.14. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock is currently stuck in a downtrend, trading 7.21% below its SMA20, 9.67% below its SMA50, and 11.16% below its SMA200. It's been a rough couple of days for the stock, losing 6.15% over the last week.

3. KeyCorp (NYSE:KEY): Money Center Banks Industry. Market cap of $6.91B. TTM operating cash flow/common equity at 0.30 vs. 5-year average at 0.14. MRQ total debt to assets at 0.15. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. Might be undervalued at current levels, with a PEG ratio at 0.84, and P/FCF ratio at 3.06. It's been a rough couple of days for the stock, losing 9.83% over the last week.

4. Regions Financial Corp. (NYSE:RF): Regional Banks Industry. Market cap of $6.42B. TTM operating cash flow/common equity at 0.31 vs. 5-year average at 0.18. MRQ total debt to assets at 0.11. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock is currently stuck in a downtrend, trading 22.61% below its SMA20, 24.99% below its SMA50, and 31.69% below its SMA200. It's been a rough couple of days for the stock, losing 16.26% over the last week.

5. Towers Watson & Co. (NYSE:TW): Management Services Industry. Market cap of $4.17B. TTM operating cash flow/common equity at 0.23 vs. 5-year average at 0.19. MRQ total debt to assets at 0.02. According to RiskMetrics, the company has 'low risk' in all corporate governance categories. It's been a rough couple of days for the stock, losing 7.9% over the last week.

6. Cullen/Frost Bankers, Inc. (NYSE:CFR):
Regional Banks Industry. Market cap of $3.14B. TTM operating cash flow/common equity at 0.21 vs. 5-year average at 0.13. MRQ total debt to assets at 0.05. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock is a short squeeze candidate, with a short float at 6.27% (equivalent to 9.3 days of average volume). The stock has performed poorly over the last month, losing 10.38%.

7. Sotheby's (NYSE:BID):
Specialty Retail, Other Industry. Market cap of $2.61B. TTM operating cash flow/common equity at 0.43 vs. 5-year average at 0.22. MRQ total debt to assets at 0.18. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. This is a risky stock that is significantly more volatile than the overall market (beta = 2.26). It's been a rough couple of days for the stock, losing 8.83% over the last week.

8. Teradyne Inc. (NYSE:TER): Semiconductor Equipment & Materials Industry. Market cap of $2.20B. TTM operating cash flow/common equity at 0.49 vs. 5-year average at 0.28. MRQ total debt to assets at 0.08. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. Might be undervalued at current levels, with a PEG ratio at 0.82, and P/FCF ratio at 4.7. The stock is a short squeeze candidate, with a short float at 11.54% (equivalent to 6.11 days of average volume). It's been a rough couple of days for the stock, losing 11.86% over the last week.

9. Coeur d`Alene Mines Corporation (NYSE:CDE): Silver Industry. Market cap of $2.19B. TTM operating cash flow/common equity at 0.10 vs. 5-year average at 0.05. MRQ total debt to assets at 0.07. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock is currently stuck in a downtrend, trading 15.06% below its SMA20, 9.81% below its SMA50, and 13.86% below its SMA200. It's been a rough couple of days for the stock, losing 10.37% over the last week.

10. Dana Holding Corporation (NYSE:DAN): Auto Parts Industry. Market cap of $1.96B. TTM operating cash flow/common equity at 0.26 vs. 5-year average at -0.41. MRQ total debt to assets at 0.17. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock is currently stuck in a downtrend, trading 33.11% below its SMA20, 33.35% below its SMA50, and 32.6% below its SMA200. It's been a rough couple of days for the stock, losing 20.04% over the last week.

11. Fairchild Semiconductor International Inc. (NASDAQ:FCS):
Semiconductor Industry. Market cap of $1.71B. TTM operating cash flow/common equity at 0.29 vs. 5-year average at 0.20. MRQ total debt to assets at 0.15. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. This is a risky stock that is significantly more volatile than the overall market (beta = 2.42). Might be undervalued at current levels, with a PEG ratio at 0.83, and P/FCF ratio at 11.88. It's been a rough couple of days for the stock, losing 10.59% over the last week.

12. Pier 1 Imports, Inc. (NYSE:PIR): Home Furnishing Stores Industry. Market cap of $1.15B. TTM operating cash flow/common equity at 0.40 vs. 5-year average at 0.00. MRQ total debt to assets at 0.01. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 9.86. It's been a rough couple of days for the stock, losing 10.01% over the last week.

13. Boston Beer Co. Inc. (NYSE:SAM): Beverages Industry. Market cap of $1.12B. TTM operating cash flow/common equity at 0.47 vs. 5-year average at 0.38. MRQ total debt to assets at 0.00. According to RiskMetrics, the company has 'low risk' in all corporate governance categories. The stock is a short squeeze candidate, with a short float at 16.45% (equivalent to 9.13 days of average volume). It's been a rough couple of days for the stock, losing 5.1% over the last week.

14. SYNNEX Corp. (NYSE:SNX): Business Services Industry. Market cap of $943.27M. TTM operating cash flow/common equity at 0.11 vs. 5-year average at 0.02. MRQ total debt to assets at 0.16. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. Might be undervalued at current levels, with a PEG ratio at 0.73, and P/FCF ratio at 10.97. The stock is a short squeeze candidate, with a short float at 6.09% (equivalent to 8.58 days of average volume). It's been a rough couple of days for the stock, losing 8.72% over the last week.

15. Sturm, Ruger & Co. Inc. (NYSE:RGR): Sporting Goods Industry. Market cap of $498.66M. TTM operating cash flow/common equity at 0.38 vs. 5-year average at 0.32. MRQ total debt to assets at 0.00. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock is a short squeeze candidate, with a short float at 11.45% (equivalent to 14.6 days of average volume). The stock has had a good month, gaining 11.69%.

16. Pep Boys - Manny, Moe & Jack (NYSE:PBY): Auto Parts Stores Industry. Market cap of $487.20M. TTM operating cash flow/common equity at 0.21 vs. 5-year average at 0.13. MRQ total debt to assets at 0.19. According to RiskMetrics, the company has 'low risk' in all corporate governance categories except for Compensation Risk, which received a rating of 'medium risk'. The stock is a short squeeze candidate, with a short float at 19.9% (equivalent to 11.57 days of average volume). It's been a rough couple of days for the stock, losing 13.95% over the last week.

*RiskMetrics ratings sourced from Yahoo! Finance, operating cash flow/common equity and total debt to assets 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: 16 High Cash-Flow Stocks With Low Debt and Good Corporate Governance