Highest FCF Conversion

Here are 25 quality large caps with the highest FCF Conversion. The FCF Conversion ratio measures the % of net income that is converted into FCF. Formula: (FCF-SBC)/(Net income).

1. $EQT - EQT AB - 709%

2. $MELI - MercadoLibre - 452%

3. $ADYEN - Adyen - 253%

4. $CRM - Salesforce - 162%

5. $PTC - PTC - 158%

6. $GMAB - Genmab - 148%

7. $NEM - Nemetschek - 142%

8. $STMN - Straumann - 137%

9. $DECK - Deckers Outdoor - 136%

10. $MEDP - Medpace - 133%

11. $FTNT - Fortinet - 129%

12. $RGEN - Repligen - 125%

13. $NFLX - Netflix - 122%

14. $LULU - Lululemon - 122%

15. $PLTR - Palantir - 105%

16. $EVO - Evolution AB - 105%

17. $INTU - Intuit - 104%

18. $TREX - Trex - 104%

19. $BESI - BE Semiconductor - 103%

20. $MORN - Morningstar - 102%

21. $V - Visa - 102%

22. $VACN - VAT Group - 102%

23. $MPWR - Monolithic Power - 101%

24. $MA - Mastercard - 99.6%

25. $MSCI - MSCI - 99.3%

Source: @KoyfinCharts

Quality criteria:

- Revenue & EPS next 3Y >10%

- FCF+

- ROIC >0%

- Altman Z >3

- Gross Profit Margin >40%

- Net Income Margin >5%

- Marketcap >$10B

A FCF conversion ratio above 100% indicates that a company's cash flow from operations is exceeding its net income, implying that it is generating more cash than it is reporting in profits. This can suggest efficient management of working capital, effective cost control, or potentially conservative accounting practices. It may also signal strong cash flow sustainability and the ability to fund investments, dividends, or debt reduction without relying heavily on external financing.