Operating Cash Flow to EPS

The Operating Cash Flow to Earnings Per Share Ratio, or OCF/EPS Ratio, compares operating cash flow per share (i.e. operating cash flow divided by the number of shares used to calculate EPS) with normalised EPS. It is a measure of cash conversion, i.e. the proportion of profits that are converted to cash flow. This is measured on a TTM basis. using Diluted Shares Outstanding.

Stockopedia explains OCF / EPS

A good way to evaluate quality is to compare operating cash flow per share to reported EPS.

If it is greater than 1, this means that operating cashflow is greater than normalised EPS, suggesting that earnings are of a high quality because the company is generating more cash than is reported on the income statement.

It can also be less than 0, i.e. a company can show a positive earnings on the income statement while also bearing a negative cash flow.

This is measured on a TTM basis and uses diluted shares outstanding.

Ranks: High to LowAvailable in screenerAvailable as Table Column

The 5 highest OCF / EPS Stocks in the Market

TickerNameOCF / EPSStockRank™
LON:CREICustodian Property Income Reit438.8558
LON:MCGMobico408.1064
LON:JZCPJZ Capital Partners316.2771
LON:VANQVanquis Banking129.3747
LON:AAFAirtel Africa87.2162