free cash flow - Trading Studio (Page 2)

Growth of $10,000 invested in FCF Conversion Quality on UK stocks vs FTSE 100 from 2000 to 2025. Strategy grew to $79K in GBP.

quality investing

FCF Conversion Quality on UK Stocks: 84% Win Rate and 18% Down Capture vs FTSE 100

FCF Conversion on LSE stocks returned 8.64% CAGR from 2000-2025, beating the FTSE 100 (1.23%) by 7.42% annually. 84% win rate, 18% down capture. The strongest relative performer in our global analysis.

Growth of $10,000 invested in FCF Conversion Quality on Indian stocks vs Sensex from 2000 to 2025. Strategy grew to $651K in INR.

quality investing

FCF Conversion Quality on Indian Stocks: 18% CAGR With Half the Sensex Drawdown Over 25 Years

We ran our FCF Conversion screen on BSE and NSE stocks from 2000-2025. 18.18% CAGR in INR, 6.13% annual excess over the Sensex (12.06% CAGR). Max drawdown of just -15% vs the Sensex's -32%. $10K grew to $651K.

Growth of $10,000 invested in FCF Conversion Quality on Canadian stocks vs TSX Composite from 2000 to 2025. Strategy grew to $98K in CAD.

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FCF Conversion Quality on Canadian Stocks: 76% Win Rate and +5.59% Alpha vs TSX Composite

FCF Conversion on TSX stocks returned 9.54% CAGR from 2000-2025 vs the TSX Composite's 3.95%. 76% win rate, the highest of any exchange. $10K grew to $98K vs $26K for the index.

Growth of $10,000 invested in FCF Conversion Quality vs Hang Seng on Hong Kong stocks from 2000 to 2025. Strategy grew to $43K, Hang Seng to $15K.

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FCF Conversion Quality on Hong Kong Stocks: +4.36% Alpha vs the Hang Seng Over 25 Years

Hong Kong FCF conversion quality returned 6.0% CAGR vs 1.64% for the Hang Seng over 25 years. +4.36% annual excess. 68% win rate. The alpha comes from stock selection, not crash protection: down capture is 70%.

Growth of $10,000 invested in FCF Conversion Quality vs S&P 500 on US stocks from 2000 to 2025. Strategy grew to $101K, SPY to $66K.

quality investing

FCF Conversion Quality: 25 Years of Separating Real Earnings from Accounting Fiction on US Stocks

We built a quality screen based on free cash flow conversion and backtested it on US stocks from 2000-2025. 9.68% CAGR vs 7.85% for SPY. The real story is downside protection. 51% down capture.

Growth of $10,000 invested in FCF Conversion Quality vs DAX on German stocks from 2000 to 2025. Strategy grew to $85K, DAX to $34K.

quality investing

FCF Conversion Quality on German Stocks: +3.89% Alpha vs DAX Over 25 Years on XETRA

We screened XETRA for FCF conversion quality from 2000-2025. 8.93% CAGR vs 5.04% for the DAX with zero cash periods in 25 years. $10K grew to $85K vs $34K for the index. 60% win rate, 39% down capture.

Growth of $10,000 invested in FCF Conversion Quality vs SMI on Swiss stocks from 2000 to 2025. Strategy grew to ~$70K, SMI to ~$15K.

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FCF Conversion Quality on Swiss Stocks: +6.35% Over SMI with 80% Win Rate

Switzerland produced +6.35% excess CAGR over the SMI, the widest gap of any exchange we tested. 8.09% CAGR, 80% win rate, 31% down capture. $10K grew to ~$70K vs ~$15K for the SMI. Quality multinationals convert earnings to cash with less noise than any other market.

Growth of $10,000 invested in FCF Conversion Quality vs SSE Composite on Chinese A-shares from 2000 to 2025. Strategy grew to ~$36K, SSE to ~$18K.

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FCF Conversion Quality on Chinese A-Shares: +2.83% Over SSE Composite in a Volatile Market

Chinese A-shares returned 5.26% CAGR, beating the SSE Composite (2.43%) by 2.83% annually. 60% win rate, 73.86% down capture, and zero cash periods. $10K grew to ~$36K vs ~$18K for the index. Volatile but FCF quality adds value.

Growth of $10,000 invested in Dividend Coverage UK (LSE) vs FTSE 100 from 2000 to 2025.

dividend investing

Dividend Coverage on UK Stocks: 9.38% CAGR, 80% Win Rate, Strong Drawdown Protection

Dividend coverage on LSE: 9.38% CAGR over 25 years, 80% win rate, max drawdown -23.46%. During 2008, coverage stocks fell just 3.8% while the FTSE 100 dropped 22.0%.

Growth of $10,000 invested in Dividend Coverage Germany (XETRA) vs DAX from 2000 to 2025.

dividend investing

Dividend Coverage on German Stocks: 12.83% CAGR, 7.79% Annual Alpha vs DAX

Dividend coverage on XETRA: 12.83% CAGR over 25 years, 7.79% annual alpha vs the DAX. Best Sharpe ratio (0.519) of any exchange tested. Zero cash periods across 25 rebalances.

Growth of $10,000 invested in Dividend Coverage US vs S&P 500 from 2000 to 2025. Coverage grew to $154K, S&P 500 to $66K.

dividend investing

Dividend Coverage: Screening for Cash-Backed Dividends on 25 Years of US Data

We screened US stocks for companies whose free cash flow comfortably covers dividend payments. 11.56% CAGR over 25 years vs 7.85% for the S&P 500. Zero cash periods.

Growth of $10,000 invested in Dividend Sustainability US vs S&P 500 from 2000 to 2025. Sustainability grew to $128K, S&P 500 to $66K.

dividend investing

Dividend Sustainability Score: A 5-Factor Screen on 25 Years of US Stock Data

We built a 5-component sustainability score combining payout ratio, debt/equity, FCF coverage, ROE, and Piotroski F-Score. 10.73% CAGR over 25 years vs 7.85% for the S&P 500. Jensen's alpha of 3.89%.