Josh Kohn-Lindquist's avatar
$25.7m follower assets
3 Powerful FCF Generators Worth a Buy
Recently I wrote about three stocks that I believe are good candidates to triple over the next decade in $ADBE, $SPGI, and $INMD.

I decided to look for these companies through the scope of high FCF margins, and these three fit the billing -- ranging from 35% to 48%.

Down somewhere between 20% and 60% year to date, now is an attractive time to consider adding to these businesses.


TLDR

  • Adobe - Experience Cloud's TAM of $120B is fascinating, especially being Gartner's No. 1 company in the customer experience and relationship management categories. Its valuation seems fair, trading around 26x FCF and growing its FCF by 24% annually over the last three years.
  • S&P Global - Has increased its dividend for 49 consecutive years and plans to pay out 85% of its future FCF. In addition, its IHS Markit acquisition makes S&P a dominant business information provider -- aside from its indexes.
  • InMode - Trades at 13x FCF, despite growing sales by 51% annually over the last five years and 31% YoY in its previous quarter. INMD Offers non and minimally invasive procedures that are an alternative to many older plastic surgery techniques.
Who's your favorite pick to triple over the next decade?
43%Adobe
24%S&P Global
32%InMode
37 VotesPoll ended on: 07/25/22
delos's avatar
i’m betting on all those aging millennials needing some “rejuvenating” procedures from $INMD
Josh Kohn-Lindquist's avatar
@diggity 😂 It seems like a good bet.

They seem much safer and easier than the alternatives out there right now.

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