These 3 Small and Microcaps Are Using Free Cash Flow to Flourish

Spotlight Growth - Penny Stocks, Small Cap Stocks, Micro-Cap and Micro Cap Stocks, Stock Exchange, NASDAQ, Crypto, BitCoin, DogeCoin, Ai, Artificial Intelligence, Chat GPT, OpenAi, Open Ai, ASURE Software, Trending, Now, Breaking News, BioTech, Data, Analytics, Technology, Big Tech, Banking, SVB, Bank Closures, Failures, Finance, Stock Market News, WeBull, RobinHood, Reddit Traders, Trading, Investing, Investors, Investment, Investments, Day Trading, Real Estate, VC, Venture Capital, Private Equity, Firm, Firms, OTC Markets, Public, Private, OTCQB, GOOG, APPLE, Shareholders, Stakeholders, Shares, Finance Education, Blog, Articles, Consumer Goods, Pharma, Commodities, Precious Metals, Gold, Silver, Cannabis, CBD, Lithium, Electric Vehicles, Solar, Tesla, Charging, EV, Cloud Computing, Wall Street Bets, Sports Betting, Economy, Economics, IPO, Trade Ideas, Intellectual Property Rights, Private Placement, Crowd Funding, Fundraising, Meta, Metaverse, Web 3, Cyber, Cybersecurity, Cyber Security, Aircraft, VPN, Yahoo Finance, Benzinga, BarChart.

Free cash flow is a measure of how much cash a company is generating after capital expenditures. One standard measurement of free cash flow is to compare it to a company’s market cap, known as price / free-cash-flow (P/FCF).

It’s a good way to tell how much cash is available to generate new business, enter new business lines, pay dividends, or even reduce debt. It can tell you if management has options to be innovative with the company, or if they’re struggling just to stay afloat.

This can be very important for a small or micro-cap company where there may be a fear of running out of cash. These three small and micro-cap stocks are executing well, judging by their stock behavior, and they have great P/FCF ratios.

You may never have heard of Sequential Brands Group, Inc. (NASDAQ: SQBG), but you have definitely heard of some of the brands they manage. Brands like Martha Stewart, Emeril Lagasse, and Jessica Simpson are all owned and managed by Sequential.

The company purchases a brand that is already established and then uses its team of marketing and branding experts to monetize and optimize the brand. The company has a strong P/FCF of 4.77. (The current P/FCF for the S&P 500 is around 11.50.)

The stock has been recovering this year after a poor showing in 2017. But trading at $2.11, the stock is still below book value of $4.47 a share, and has a forward P/E of only 3.14. With Martha Stewart launching a new book series in early 2019, now may be the time to plant some Sequential in your portfolio.

As the tariff wars heated up earlier this year Controladora Vuela Compania de Avicion, S.A.B. de C.V., or Volaris (NYSE: VLRS) a Mexico-based airline, took a major hit. The stock fell hard on an earnings release in late April, but has been on a hot streak in the month of July, rising over 48%.

Volaris is generating cash using its low cost airline model, and has a P/FCF ratio of only 5.28. Management is projected to grow earnings 147% next year.

By continuing to reduce costs, and remain the low cost provider in the Mexican market, Volaris appears to be climbing out of the hole the stock found itself in earlier this year.

Finally, let’s look at a technology stock that has more than doubled this year, is in one of the hottest emerging tech areas around, and has a P/FCF ratio of 8.1. Immersion Corp. (NASDAQ: IMMR) makes and licenses haptic technology, or touch and feedback tech, used in mobile phones and virtual reality gear.

Immersion has been a leading player in the mobile phone and gaming market, and has recently signed two automotive deals with Panasonic and Calsonic Kansei.

As a player in this rapidly expanding space you might expect a high valuation. But, combined with the great cash flow numbers, the growing company has a P/E of only 8.86. The stock has pulled back recently giving investors a chance to get in off the highs set earlier this year.

Free cash flow is a great way to see how your companies are doing when it comes to generating the resources necessary to grow and be nimble competitors. Sequential, Volaris, and Immersion are three very different companies that have all found a way to ensure they have the cash necessary to thrive.

Disclaimer: The author and Spotlight Growth has no positions in any of the stocks mentioned in this article. Nor does either party currently have any relationship, or any other conflicts of interest, with any of the companies mentioned in this article. This content is meant for informational and entertainment purposes only and should not be meant as a recommendation to buy or sell any securities. Please visit a licensed financial representative to determine what investments are right for you.

Article By: Steven Adams

Tags: airlines brands charts common stock consumer brands consumer tech daytrader emerging growth investing investment microcap stocks NASDAQ news NYSE public company sales services small cap companies small cap stocks small caps Spotlight Growth Spotlight Growth Stocks tech Technology technology stocks trader trading valuation

These 3 Small and Microcaps Are Using Free Cash Flow to Flourish

Asure Software (NASDAQ: ASUR) is Expanding to Meet the Rising Demand for Human Capital Management Software

OLB Group (NASDAQ: OLB) and Cuentas (NASDAQ: CUEN) Team Up to Bring Fintech Solutions to Over 32,000 Bodegas Across the United States

New Purchase Orders for SD7 Rugged Device, VK7, and Other Accessories Boost Siyata Mobile’s Outlook (NASDAQ: SYTA)

Telcoin (TEL) Quietly Leads a Crypto Remittance Revolution

Vision Marine (NASDAQ: VMAR): An Innovative, Revenue-Producing Company Riding the Electric Boating Growth Trend

Decentraland (MANA) is the Proof of Concept for the Emerging Metaverse

Alfi, Inc. (NASDAQ: ALF) Climbs 51% After Entering Into Agreement with Miami-Based Fulfillment & Distribution Center For its Ridesharing Digital Tablet Rollout

Telcoin (TEL) Continues to Demonstrate Fundamental Progress, Displaying Bullish Technical Setup

Grove Collaborative (NYSE: GROV) Expands Retail Distribution Footprint Into 2,200 Additional Stores

The Metaverse is Exploding in Popularity and Growth

Cybersecurity Stocks Coming Into Focus Amid High-Profile Attacks

Safe-T (NASDAQ: SFET) Has Been Selected to Present at the United Nations’ Office of Information and Communications Technology Event

Safe-T Group (NASDAQ: SFET) Reports Fourth Quarter and Full Year 2020 Financial Results

Safe-T Group Ltd. (NASDAQ: SFET) Estimates Record-High Annual Revenues of Approximately $4.9 Million Representing ~50% Growth YoY 2020

Safe-T Group Ltd. (NASDAQ: SFET) to Participate at A.G.P.’s Virtual Emerging Growth Technology Conference on February 4, 2021

Nvidia Announces New Chip Specifically For Ethereum Mining

Sortis Holdings, Inc. (OTC Pink: SOHI) Announces Results for Second Quarter 2020

Medical Marijuana Coming Soon to Virginia

SushiSwap (SUSHI) Appropriates Uniswap’s Liquidity Pool by Preempting Native Token Release

Europe Shows Signs of Warming to SPACs

Singapore’s Journey to Becoming a Biotech Powerhouse

SeaStar Medical (NASDAQ: ICU) Earns Third FDA Breakthrough Device Designation for Selective Cytopheretic Device

Exploring What Led to a 3,000% Surge in Shares of Tempest Therapeutics (NASDAQ: TPST)

Vivos Therapeutics (NASDAQ: VVOS) Secures Strategic Alliances to Enhance Clear Aligner Offerings and Bolster Revenue Streams

Shares of Soleno Therapeutics (NASDAQ: SLNO) Surge Over 500% After Its DCCR Candidate Shows Promise in PWS Clinical Trials

Understanding EBITDA and Adjusted EBITDA: A View Into Asure’s (NASDAQ: ASUR) Recent Financial Performance

From Microsoft to Travel Tech: VCI Global’s (NASDAQ: VCIG) Expanding AI Horizons

Singapore’s Leap into the Future of Cell and Gene Therapies

Asure (NASDAQ: ASUR) Completes Capital Raise to Fuel High-Interest Debt Reduction, Craig-Hallum Analyst Praises Move and Estimates Bullish Outcome

Asure (NASDAQ: ASUR) Reports Massive 50% Y/Y Revenue Growth During Q2 2023, Raises $40 Million to Pay Off High-Interest Debt and Fund Acquisitions

Recent News

Singapore’s Journey to Becoming a Biotech Powerhouse

SeaStar Medical (NASDAQ: ICU) Earns Third FDA Breakthrough Device Designation for Selective Cytopheretic Device

Categories

Site Navigation