Free cash flow to sales is a valuation ratio that measures a company's surplus cash flow against sales revenues. The ratio indicates how much of a company's revenue is transformed into cash.
FCF/Sales expressed as a percentage is often used to find 'cash cow' stocks. When screening the market it's good to look for FCF/Sales > 5% - that's often a sign of a high quality company. This ratio was covered in depth in Pat Dorsey's Morningstar books.
| Ticker | Name | FCF/ Sales % | StockRank™ |
|---|---|---|---|
| LON:THAL | Thalassa Holdings | 4970840 | 40 |
| OTC:UCUT | Uppercut Brands Inc | 1276025 | 77 |
| NSI:RAINBOWPAP | Rainbow Papers | 899933.33 | 6 |
| ASX:HFR | Highfield Resources | 373521.31 | 87 |
| NAQ:DMAC | DiaMedica Therapeutics Inc | 267242.08 | 12 |
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