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™ |
|---|---|---|---|
| NSI:BLUECOAST | Blue Coast Hotels | 388394000 | 3 |
| BOM:531898 | Sanguine Media | 12914074.07 | 50 |
| LON:THAL | Thalassa Holdings | 4970840 | 46 |
| LON:JAY | Bluejay Mining | 1023464.38 | 18 |
| NSI:RAINBOWPAP | Rainbow Papers | 899933.33 | 2 |
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