Free Cash Flow Compounders

Free cash flow is what remains after a company pays for the capital spending its operations require, which makes it harder to flatter than reported earnings: accruals and depreciation choices move net income around, but cash either arrived or it did not. This scan looks for companies whose free cash flow is positive and growing year-over-year, with net margins above 10%. A business that generates cash internally can fund its own growth without issuing shares or borrowing.