Undervalued Tech Stock Vishay Intertechnology Boasts 18.8% Free Cash Flow Yield
Many investors who follow my articles and trade ideas here on SA will know I look primarily for strong free-cash-flow-yield metrics, as a basic starting point for potential plays - preferably within a sector which has become technically oversold.
One such company which appears on my radar today, is Vishay Intertechnology Inc. ( VSH ). This broad line semiconductor company currently generates leveraged-free-cash-flow of $381.36 million on a trailing 12 month basis. The last trading session valued the business (Enterprise Value) at $2.02 billion, hence returning a significant free-cash-flow-yield (FCF/EV) of 18.8%.
Additional metrics in favor of VSH include: a low PEG ratio of 0.62 and consensus analyst mean target price of $20.50 (significantly above the current price). VSH currently trades at $15.70 per share, 24% below analyst estimates and around 129% above its 52 week low.
Note the emphasis on the free-cash-flow-yield. This simple to calculate metric measures the FCF generated by a business, divided by the enterprise value (or EV) of the company. The FCF is a superior, more accurate reflection of a company
Hence, by dividing FCF by EV, we arrive at the free-cash-flow-yield. It is the percentage of true net income a company generates relative to its true overall value. The higher the yield, the more potentially undervalued the stock.
Moreover, the yield provides an excellent basis for comparison of competing stocks within the same industry/sector, and forms a solid basis (starting point) for further analysis into a specific company.
For instance, a stock offering a high (minimum 10%) free-cash-flow-yield, in addition to positive metrics, such as a low price-to-earnings-growth (or PEG) ratio, bullish analyst estimates, increased insider and institutional (smart money) buying, management competence (entrepreneurialism, innovation and drive), provision of a product (or service) within a growth market, all provide weight to strong upside potential.
Net Cash Flow - News
ING reckons that the flow of money back into the bond market via redemptions will offset gross supply, even without coupon payments. This cash-flow cushion may provide issuers a badly needed breather, possibly capping the cost of funding at auctions,
Hence, by dividing FCF by EV, we arrive at the free-cash-flow-yield. It is the percentage of true net income a company generates relative to its true overall value. The higher the yield, the more potentially undervalued the stock.
Since the option award does not involve the payment of any cash, this is a non-cash expense item and tends to produce cash flow in excess of net income. In addition, a calculation is made of the "tax savings" associated with the expense (the company's
Financial difficulty at any of them would prove somewhat disruptive to Ventas' cash flow for debt service. Ventas has a reasonable capital structure and financing strategy. Net debt/EBITDA stands at less than 5 times. Moreover, coverage should remain
Apple's massive net cash position gives the company incredible financial flexibility and often leads to rampant acquisition speculation. Apple is trading at 11x trailing free cash flow, 7.8x consensus fiscal 2011 EBITDA, 13.8x consensus 2011 earnings,
Cash Flow Notes | Beware of door-to-door peddlers
BY ALAN Bligh
The Texas Department of Public Safety to promote civic ensure that a seller hire alarm, alarm company or installer, licensed DPS, Division of Regulatory Services. And the alarm installers must be licensed legally in Texas.
The licensing includes a criminal background check to ensure public safety.
To check whether a seller or installer licensed in Texas, please visit the following link: www.txdps.state.tx.us / psb / person / individual_search.aspx.
To check whether the security company licensed in Texas, please visit the following link: www.txdps.state.tx.us / psb / company / company_search.aspx.
Read the company with BBB. Many complaints relate to the practice of informing the consumer that the alarm system and installing "free" only one sign was placed in the front yard. It was only after the consumer is informed that a monthly fee monitoring.
Current technology is continually replaced by
Typical applications are in the form of a lump sum at the time of the original gadget will buy.
To avoid failure of the latest technology, many consumers are opting for a share buyback program to ensure that your unit is not about the victims of digital dust. As long as the gadget is in good condition, many buy-back program trading, with elements such as mobile phone, laptop, tablet PC and TV for a percentage of actual value. Normally this means in the form of a gift card that can be used to buy a newer model.
BBB recommends that consumers weigh the pros and cons before you purchase the program from a vendor. Remember:
Many buy-back options are the conditions and restrictions that could have eventually used the opportunity to re-sell the unit.
Remember that the interest of retailers in the rule at heart.
Gadget buy-backs are not ideal for the forgetful or unorganized.
Mobile phone contracts are not covered.
You may compromise your identity. Before selling his return to the electronics business, your personal data.
You could get more from their electronics by selling elsewhere.
The Federal Trade Commission has filed a lawsuit against the Dalbey Education Institute. The company is in trouble for his infomercial, "Winning the Cash Flow Business" since 2002, consumers who believe they can get rich by trying seller financed promissory notes or cash flow. Infomercials sell the material for the first prize of $ 160.
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5 Steps to Take Control of your Cash Flow. Bloomberg Businessweek - 6/30/2011 
In first 1/4, COG's net cash flow neg $107 mil, Range's neg $131 mil
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Cash flow - Wikipedia, the free encyclopedia
Cash flow is the movement of cash into or out of a business, project, or financial product. ... The (total) net cash flow of a company over a period (typically a ...
Cash flow
Cash flow analysis is central to financial statement analyis to assess financial positoin of a
What is net cash flow? definition and meaning
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Cash flow statement - Wikipedia, the free encyclopedia
This method converts accrual-basis net income (or loss) into cash flow by using a series of additions and deductions.[14] [edit] Rules (Operating Activities) ...
cash flow: Definition from Answers.com
cash flow n. The pattern of income and expenditures, as of a company or person, and the resulting availability of cash: The city improved its cash