Lam, Visa and AMAT have seen their FCF yield grow the most

Long_Equity
05-31

Here's the 3yr change in FCF yield for the companies in my portfolio and watchlist.

$Lam Research(LRCX)$ $Visa(V)$ $Applied Materials(AMAT)$ have seen their FCF yield grow the most. $Novo-Nordisk A/S(NVO)$ $Constellation Software, Inc.(CNSWF)$ $Fair Isaac(FICO)$ have seen their FCF yield decline the most.

Note: Change in FCF yield is a result of movements in both share price and FCF per share.

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Not suprisingly, the companies that saw FCF yield decline the most also saw their share price increase the most.

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And here's a side by side comparison of change in FCF yield with change in share price and change in FCF per share.

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I forecast the future FCF/share and compare that to the current share price. I call that the forward FCF yield. I then also compare the curreny FCF/share to my average entry price, which I call the FCF yield on cost. The current weighted FCF yield on my portfolio is around 3%, with the FCF yield on cost at around 3.5%.

https://x.com/long_equity/status/1796109903070683142

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  • sadsam
    ·05-31
    Keep up the good work!
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