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.