High free cash flow yield stocks can represent a compelling investment opportunity, as these companies generate substantial cash compared to their market capitalization. This strong cash generation efficiency demonstrates their operational excellence and ability to effectively convert sales into actual cash after covering essential business costs like capital expenditures and working capital requirements.
Robust cash flow provides these companies with significant strategic advantages. They can self-fund growth initiatives like expansions or acquisitions, reduce their debt burden, or reward shareholders through consistent dividend payments and share repurchase programs. This financial independence reduces their reliance on external funding sources like debt or equity issuance, which can be especially valuable when capital markets tighten.
During market downturns, high free cash flow yield stocks often demonstrate resilient characteristics. Their consistent cash generation serves as a financial cushion, helping them weather economic challenges while maintaining their operational commitments and financial obligations. This stability is particularly valuable when business conditions deteriorate across the broader market.
Discover how Validea’s models can help you identify high-quality, long-term investments, even in changing market conditions. Visit Validea.com to access in-depth stock analysis and tools designed to emulate proven investment principles. Take a Free Trial Today!
Here are the top 10 most fundamentally sound high free cash flow yield stocks using our guru models as of February 2025.
| Ticker | Company Name | Free Cash Flow Yield | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Neg. Quality Percentile | Value Percentile |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CRI | CARTER’S INC | 8.8% | $51.92 | $1,871 | 8.2 | 0.7 | 28 | 2.3 | 6.5 | 88 | 5 |
| AX | AXOS FINANCIAL INC | 8.4% | $70.02 | $3,998 | 9.4 | 3.3 | 77 | 1.6 | 8.7 | 42 | 15 |
| ASO | ACADEMY SPORTS AND OUTDOORS INC | 10.5% | $51.48 | $3,573 | 8.5 | 0.6 | 34 | 1.8 | 6.3 | 81 | 5 |
| VC | VISTEON CORP | 11.6% | $89.16 | $2,414 | 9.1 | 0.6 | 35 | 2.0 | 6.4 | 86 | 10 |
| CROX | CROCS INC | 13.9% | $110.95 | $6,219 | 6.9 | 1.5 | 48 | 3.4 | 6.1 | 80 | 12 |
| BLBD | BLUE BIRD CORP | 10.2% | $35.18 | $1,130 | 10.9 | 0.8 | 68 | 6.3 | 10.1 | 15 | 35 |
| STRL | STERLING INFRASTRUCTURE INC | 9.8% | $126.72 | $3,892 | 21.5 | 1.9 | 85 | 5.4 | 14.9 | 9 | 58 |
| PLAB | PHOTRONICS INC | 9.3% | $22.57 | $1,435 | 10.8 | 1.7 | 33 | 1.3 | 5.4 | 53 | 11 |
| NXST | NEXSTAR MEDIA GROUP INC | 12.1% | $154.34 | $4,788 | 8.9 | 0.9 | 45 | 2.2 | 3.6 | 79 | 5 |
| ATKR | ATKORE INC | 11.6% | $68.23 | $2,347 | 6.6 | 0.8 | 21 | 1.6 | 4.7 | 90 | 3 |
Further Research
