To The Moon

Revenue growth is only the first step.

The real compounding happens when a company can turn higher revenue into even faster FCF growth, and then turn that FCF growth into even faster FCF per share growth. 📈

That is where three powerful forces come together:

Margin expansion + Buybacks + Multiple contraction

A company doesn't necessarily need explosive revenue growth to generate strong long-term shareholder returns. If margins keep expanding, cash flow can grow faster than revenue. If management keeps buying back shares, FCF per share can grow even faster.

And if the valuation multiple doesn't expand — or even contracts — the underlying business can still deliver strong returns.

🔥 The companies that stand out

The following 24 companies show the characteristics of this kind of compounding model:

Financials & Payments

$Kinsale Capital(KNSL)$ $Arch Capital(ACGL)$ $Progressive(PGR)$ $MasterCard(MA)$ $Visa(V)$ $RLI Corp(RLI)$ $WR Berkley(WRB)$ $Nasdaq(NDAQ)$ $Primerica(PRI)$ $Chubb(CB)$ Marsh McLennan $Automatic Data Processing Inc(ADP)$

Industrials & Infrastructure

$Cintas(CTAS)$ $Stryker(SYK)$ $Vulcan Materials(VMC)$ $Ametek Inc(AME)$ $Watts Water(WTS)$ $Republic(RSG)$ $Hubbell(HUBB)$ $TE Connectivity(TEL)$

Technology & Communications

$Monolithic Power(MPWR)$ $Apple(AAPL)$ $Motorola Solutions(MSI)$

Market Infrastructure

$Intercontinental Exchange(ICE)$

📊 What makes the setup interesting?

Look at Kinsale Capital.

The company is projected to grow revenue at roughly 30% annually over 10 years, while FCF is expected to grow at the same 30% rate and FCF per share at about 29%.

But the more interesting part is what happens underneath the surface.

Margin expansion: 0% boost
Buyback effect: -1%
Multiple contraction: +6%

That combination implies the company can potentially deliver around 35% annual price CAGR over the 10-year framework shown in the data.

Then look at Apple.

Revenue growth is much lower at around 8%, but FCF per share growth reaches roughly 14%, helped by margin expansion, buybacks and the per-share effect of a shrinking share count.

The result is a projected 28% 10-year price CAGR in this framework. 🍎

💡 The key takeaway

This isn't simply a list of the companies with the fastest revenue growth.

It's a list of businesses that have multiple ways to compound shareholder value.

Revenue growth → Margin expansion → FCF growth → Buybacks → FCF/share growth

And there is another important variable:

Valuation.

If the business continues to compound while the valuation multiple contracts, investors can still generate attractive returns because the underlying cash flow engine is doing more of the work.

That's the beauty of a strong compounder.

You don't need every variable to move in your favor.

You need the business to keep getting better faster than the valuation is getting worse.

🚀 The names I'd watch

Some of the strongest combinations in the dataset include:

KNSL — 30% revenue CAGR / 30% FCF CAGR / 29% FCF-per-share CAGR

MPWR — 24% / 27% / 24%

PGR — 15% / 20% / 20%

MA — 13% / 15% / 17%

V — 11% / 15% / 18%

CTAS — 9% / 26% / 27%

AAPL — 8% / 10% / 14%

MSI — 7% / 13% / 13%

The common thread isn't necessarily explosive top-line growth.

It's the ability to convert growth into cash, and cash into more cash per share.

That is what makes FCF compounding so powerful over a long enough time horizon. 📈

Revenue growth gets attention.
FCF growth creates value.
FCF per share growth creates shareholder returns.