S&P 500 companies that have grown their FCF by 10% over the last 10 years
Here's a list of S&P 500 $S&P 500(.SPX)$ companies that have grown their FCF by 10% over the last 10 years.
Some observations:
1. Notice that while FCF has grown by 10% (second column), FCF per share has grown anywhere from -1% to 18% (third column). As expected, this difference (fourth column) is primarily due to change in share count (fifth column).
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2. This next list is S&P 500 companies that have grown their FCF per share by 10% over the last 10 years. Take a look at how their share prices (third column) have moved over the same time period.
In other words, 10% growth in fundamentals doesn't always equal a 10% growth in share price. This difference (fourth column) is due to a change in valuation (FCF yield) over this time period.
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3. This list shows S&P 500 companies that have experienced 0% growth in FCF over the last 10 years. Despite this, they've managed to grow their FCF per share. This demonstrates one of the few issues with using FCF per share, in that buybacks and SBC can distort their value.
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4. This final list, shows S&P 500 companies that have grown their share price by 10% over the last 10 years. Notice that companies like $Corning(GLW)$ achieved this while their FCF per share dropped by -8% per year. In contrast, $AbbVie(ABBV)$ did this by growing their FCF per share by 19% per year.
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