Revenue Growth Is Only the Start FCF Growth Is the Real Story
I like companies that can turn revenue growth into even faster FCF growth — and then turn that FCF growth into even stronger FCF per share.
That’s where the real compounding starts. 🔥
Three things can make the engine work even harder:
📈 Margin expansion means more cash from every dollar of revenue.
💵 Share buybacks spread that growing cash flow across fewer shares.
🚀 Multiple expansion can add another layer of upside when the market starts paying more for that growth.
The result is powerful:
Revenue ↑ → FCF ↑↑ → FCF/share ↑↑↑
The companies in this list are showing exactly that kind of progression over the next decade.
A few standouts from the screen:
Comfort Systems USA
21% revenue CAGR → 41% FCF CAGR → 42% FCF/share CAGR
e.l.f. Beauty
24% revenue CAGR → 30% FCF CAGR → 30% FCF/share CAGR
IES Holdings
19% revenue CAGR → 27% FCF CAGR → 27% FCF/share CAGR
Lululemon
18% revenue CAGR → 24% FCF CAGR → 27% FCF/share CAGR
And then you have companies where margin expansion + buybacks + multiple expansion can add another layer to the compounding.
That’s the part I’m looking for.
Don’t just screen for companies growing revenue. Look for businesses that can turn every additional dollar of revenue into even more cash for shareholders. 👀
Markets are always moving - and sometimes, the best move is knowing what works for you.
With Treasury yields, oil prices and rate expectations keeping markets on edge this week, investors are once again thinking carefully about where to position next. There’s no one-size-fits-all choice in investing — and the same goes for Tiger Merch. This month’s hot picks are in, featuring the Tiger Toiletry Bag, Universal Travel Adapter, Tiger Umbrella and more favourites chosen by fellow Tigers.
Explore the Monthly Hot Picks in Tiger Coin Mall, now 12% OFF for a limited time.
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Fascinating