Stock evaluation includes considering many basic factors, but the ability to generate money is uniquely important. At the end of the day, commercial business focuses on the idea of generating money on net income. Non -cash expenditures such as consumption and extinguishing can make these two people seem completely different.
Non -cash expenditures affect net income, but not cash flow. However, non -cash expenditures are still considering, given that they have legitimate effects on commercial operations.
The main profitability scale that evaluates the company’s ability to convert sales into a cash available to shareholders is the free cash flow margin. It is looking for the free cash flow of the company regarding its sales, which indicates cash profitability. The free cash flow shows the amount of money that companies can offer to shareholders.
He does this by offering money spent on capital expenses. Here are three large shares in the United States, whose sectors have led the free cash flow margin over the past 12 months. All measures use data as of the closure of March 17.
Altria Group: A huge free cash flow margin that leads to the return of huge profits distributions
Altria Group stock forecast today
$ 53.29
Hold
Based on 8 analytical assessments
| The current price | $ 57.97 |
|---|---|
| High expectations | $ 65.00 |
| Average expectations | $ 53.29 |
| Low expectations | 41.00 dollars |
The expected details of the Altria Group shares
The leadership of the large consumer foodstuffs sector in the United States in the free cash flow margin is the Altria Group NYSE: MO. The company is proud of the huge cash flow margin of more than 42 %. These towers, which are more than 28 % of the free cash flow margin for the second share in its sector, Philip Morris International NYSE: PM. The generation of the company’s exceptional cash flow contributes significantly to its ability to obtain a 6.9 % upper profit division yield in the sky. This gives stocks the best 20 profit distributions between large stocks in the United States.
Tobacco products are relatively easy, making costs low. At the same time, consumers are ready to pay higher prices given the addictive properties of nicotine. This creates an ideal relationship for very profitable business and cash generation.
Airbnb: The compensation based on shares depends on the margins of the free cash flow at the top of its sector
Airbnb stock forecast today
148.15 dollars
Hold
Based on 38 analyst classification
| The current price | 126.00 dollars |
|---|---|
| High expectations | 200.00 dollars |
| Average expectations | 148.15 dollars |
| Low expectations | 90.00 dollars |
Airbnb shares details details
During the past 12 months, Airbnb Nasdaq: abnb The appreciation sector of consumers in the United States has led with a slightly less than 41 % free cash flow margin. Airbnb has made a long run since its publication in late 2020. Compared to its full year as a public company in 2021, free cash flow increased by 108 %, reaching $ 4.5 billion in 2024. The company lost $ 225 million in 2021, compared to $ 2.6 billion in net income in 2024.
There is a tremendous difference of $ 1.9 billion between the net income of the company and the free cash flow, highlighting the impact of non -cash expenditures. Much of this difference comes from Airbnb, which pays $ 1.4 billion of total stocks compensation over the past 12 months. The stock -based compensation pays employees for their work with Airbnb shares, which is non -cash.
One of the large concerns of stock -based compensation is that it creates more stocks. This can reduce current shareholders when employees transfer their stock options. However, Airbnb has also participated in wide -ranging reports, reducing this mitigation effect. In 2024, the company $ 3.4 billion on re -purchasesReducing its distinguished shares. This reduction helps in a balance between the impact of the large -based compensation strategy.
The company has reduced the number of fully reduced shares by more than 5 % since 2022. In short, the free cash flow margin of Airbnb is amplified to some extent due to the stock -based compensation. However, the company greatly reduces the risk that comes with this compensation method using re -purchases.
Texas Passifik Land: A free flow margin from the energy sector
Texas Passevik shares expectations today
917.00 dollars
He buys
Based on the classification of one analyst
| The current price | 1,382.86 dollars |
|---|---|
| High expectations | 917.00 dollars |
| Average expectations | 917.00 dollars |
| Low expectations | 917.00 dollars |
Texas Passevik Land Stort details
Texas Passevik Land Nyse: tpl It revolves around this list with a free and free monetary flow margin of more than 65 %. This leads all large American stocks in the energy sector. The reason is that the Texas Passevik Land is capable of this high margin of free cash flow due to its ownership model. Company It owns about 873,000 acres of land In the Texas Bermean basin, the largest oil basin in the United States.
Instead of extracting oil itself, the company rents the rights to extract oil to other companies. This removes the tremendous costs and equipment needed to extract oil from the ground. In turn, Texas Pacific simply get paid royalties based on the amount of oil extracted.
The company also extends the ground rights of the land and water rights over its oil reserves. This gives it the ability to increase profits in a way that can only have oil reserves.
Before you think about Airbnb, you will want to hear this.
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While Airbnb currently has a suspended classification among analysts, senior exporters believe that these five stocks buy better.
Show the five stocks here
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