The Motley Fool

NOVEMBER 12, 2023

billion through 2026 on new RNG facilities, Waste Management aims to generate an additional $450 million in free cash flow (FCF) annually once its capital expenditures (capex) start paying off. Once these capex investments mature and start generating cash, management expects to generate around $4 billion in FCF annually by 2027.

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The Motley Fool

JULY 13, 2024

His investing skills have earned incredible returns for Berkshire Hathaway shareholders over the last 50 years, so it's a smart idea to consider what he is buying (or selling). Management is directing more investment in marketing, innovation, and digital initiatives to capture this substantial growth opportunity.

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The Motley Fool

SEPTEMBER 1, 2024

In the past decade, Home Depot has averaged a higher operating margin and return on invested capital than Lowe's. Returning capital to shareholders Lowe's is a mature business. The company invests cash in opening new stores or other initiatives, like enhancing the supply chain or omnichannel capabilities.

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Shareholders Capital Returns Return On Investment 246

The Motley Fool

JANUARY 14, 2024

He also places a high value on companies that generate profits that can be reinvested in the business at high rates of return. Apple certainly passes the latter test, earning an extraordinary return on invested capital of 56%. Buffett admires Apple's ability to make products that people can't live without.

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Shareholders Financial Institutions Stakes Debt 246

The Motley Fool

NOVEMBER 18, 2024

The capital expenditure (capex) of these companies rose sharply over the last year, with much of it flowing into Nvidia's coffers. FCF can be used for all sorts of things that either boost a company's ability to do business or enrich its shareholders, often both. The trend will likely continue. Then you’ll want to hear this.

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The Motley Fool

AUGUST 22, 2024

Capital-allocation policy Devon Energy's capital allocation policy targets using 30% of FCF to support the balance sheet, partly in connection with the acquisition. While some investors may not like that, it reduces shares in issue and increases the claim of existing shareholders on future cash flow. Devon will initiate a $2.5

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The Motley Fool

JUNE 23, 2023

It's a great industry to invest in, but there is one logical problem with it: Historically, airlines don't actually cover their cost of capital. The former is simply the profits generated from the capital invested in the business, while the latter is the weighted cost of its equity and debt.

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The Motley Fool

JULY 28, 2023

Home Depot excels at returning capital to shareholders Home Depot has long had a restrained growth strategy, choosing instead to optimize profitable growth and return remaining capital to shareholders.

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The Motley Fool

APRIL 23, 2024

Oil and gas is capital intensive, and so is investing in AI. Exxon dedicates tens of billions yearly on capital expenditures to expand production and boost refinery outputs. Meanwhile, Nvidia must develop new chips that it won't see a return on for years. NVDA net total long-term debt (quarterly) data by YCharts.

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The Motley Fool

NOVEMBER 11, 2024

Since spinning off from pharmaceutical juggernaut Pfizer in 2012, the company has grown its shareholders' initial investment by some sixfold, equating to an annualized total return of 17% over 12 years.

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Shareholders Returns Return On Investment Capital 246

The Motley Fool

FEBRUARY 26, 2024

Three examples are businesses with consistently growing dividend payments and a low payout ratio, steady share repurchases, and a high and rising return on invested capital. Particular financial metrics have been proven to indicate market-beating potential when analyzing stocks.

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The Motley Fool

SEPTEMBER 14, 2023

But he has also created substantial wealth for Berkshire Hathaway shareholders. Here's why I'd split a $1,000 investment evenly across Amazon and Visa without hesitation. Amazon fits the bill three times over as it has a strong competitive position in three large markets, and its investments across all three have paid off handsomely.

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The Motley Fool

JANUARY 3, 2024

If you're already a shareholder, you can confidently hold onto the stock. NVO PE Ratio (Forward) data by YCharts Beyond valuation, Novo Nordisk generates a much higher return on invested capital (ROIC) than Eli Lilly. Analysts are bullish too. After such a big run, Eli Lilly is trading at 90 times its forward earnings.

Shareholders 246

Shareholders Capital Returns Return On Investment 246

The Motley Fool

SEPTEMBER 9, 2023

Best-in-class profitability Home to over 100 brands sold in 80 countries, Hershey has a proven track record of generating healthy returns on invested capital as it expanded across the United States in its younger years and globally more recently. return for the S&P 500 as a whole, equally weighted. compared to a 7.7%

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The Motley Fool

OCTOBER 29, 2024

billion of cash flow this year and have reached a key financial milestone while returning to a fully unsecured capital structure that will support our growth ambitions and expanding capital allocation. And this quarter, we reached a key financial milestone by returning to a fully unsecured capital structure.

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Leveraging Capital Debt Shareholders 130

The Motley Fool

JULY 2, 2023

A stellar return on invested capital Leveraging the power of its leadership position in the pool supplies and pool-related products market, Pool Corp. Best yet for investors, Pool's strong profitability also allows it to reward shareholders through rising dividends in addition to this intriguing growth optionality.

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Shareholders Leveraging Debt Return On Investment 239

The Motley Fool

NOVEMBER 27, 2023

ITW Return on Invested Capital data by YCharts. The company has prudently acquired companies over the years (more than two dozen acquisitions), steadily increasing its return on invested capital (ROIC). TTM = trailing 12 months. Strong management sets the company apart from many of its peers.

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Conglomerates Amortization Depreciation Earnings Before Interest 246

The Motley Fool

APRIL 21, 2024

As a critical "picks and shovels" provider to this burgeoning market, Sportradar looks well-positioned to capitalize on this undeniable megatrend. This three-sided network leaves Sportradar well-positioned to capitalize on various network effects as it grows stronger with each new betting operator, sports league, or media company that joins.

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The Motley Fool

DECEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends. Can Ares Capital sustain its dividend at such an ultra-high level?

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Capital Business Development Companies Taxes Shareholders 239

The Motley Fool

JULY 14, 2024

It doesn't have a great track record for investing its capital efficiently As an investor, it's important to know whether a business is going to make good use of the capital it has on hand, as well as the capital it can draw on in the form of debt and shareholders' equity.

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The Motley Fool

OCTOBER 5, 2024

The business beat Wall Street estimates on both the top and bottom lines in the three-month period, which is certainly an encouraging sign for shareholders. The capital-intensive nature of Carnival's operations is also not a favorable trait. This is evidenced by the company's extremely low return on invested capital (ROIC).

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The Motley Fool

JANUARY 27, 2024

OTC Markets itself, though, could hardly be in better financial shape -- and its recent shareholder returns speak to that fact. OTC Markets' management has an incredible track record of returning the vast majority of this FCF to shareholders through quarterly and special dividend payments.

Initial Public Offering 245

Initial Public Offering Mergers and Acquisitions New York Stock Exchange Shareholders 245

The Motley Fool

DECEMBER 16, 2023

Requiring a 15% annualized return for five years, an investment needs to slightly outperform the market's historical annualized total return of roughly 11% to 12% to accomplish this feat. United Parcel Service (NYSE: UPS) and Murphy USA (NYSE: MUSA) are two companies that fit this simple billing.

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Mergers and Acquisitions Accounting Return On Investment Capital 245

The Motley Fool

FEBRUARY 5, 2024

Diageo is quickly shifting its portfolio to capitalize on the growth levers listed above, including adding 11 net new super premium and premium brands through mergers and acquisitions (M&A) while disposing of 49 standard and value labels.

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Mergers and Acquisitions Capital Return On Investment Debt 244

The Motley Fool

MAY 9, 2024

First, it ranks as one of the largest property and casualty insurers in the world, meaning it consistently collects substantial capital (in the form of premiums) that can be invested into stocks and bonds. Second, CEO Warren Buffett has demonstrated his ability to earn excellent returns on invested capital.

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The Motley Fool

AUGUST 31, 2024

Even with the company currently in the trough of its business cycle, Omega Flex currently holds a return on invested capital (ROIC) of 24%. Typically distributing the majority of its earnings to shareholders over recent years -- including a hefty special dividend in 2019 -- management isn't afraid to return cash to shareholders.

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Initial Public Offering Shareholders Debt Returns 245

The Motley Fool

OCTOBER 8, 2023

ALLE Return on Invested Capital data by YCharts. This outsize profitability is ultimately the secret sauce that enables the company to be the steady dividend grower it is today, providing abundant net income that can be returned to shareholders or used to make acquisitions. Why buy now?

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Buyout Return On Investment Shareholders Capital 246

The Motley Fool

SEPTEMBER 12, 2024

Dividend stocks may not offer the exciting return prospects of growth stocks, but when stock market volatility returns, it is always nice to have extra cash automatically deposited in your account. That is the value of holding shares of strong companies with a long record of paying dividends to shareholders.

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The Motley Fool

DECEMBER 26, 2023

That's because whatever a stock may do in the near term or whatever its current valuation multiple, Munger taught us that over a long time period, stocks tend to return close to the return on capital of the underlying business. After all, Microsoft was the largest company in the world in the year 2000. lots of room to grow.

Capital 246

Capital Return On Investment Returns Shareholders 246

The Motley Fool

MARCH 21, 2025

of your starting capital in the last year (as of March 18). Where to invest $1,000 right now? This benefits shareholders directly because management allocates these excess earnings toward dividend payments. Ford is also a very capital-intensive company -- it has huge expenses. In 2024, Ford paid $3.1 billion in dividends.

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Prospects Capital Shareholders Accounting 182

The Motley Fool

MAY 20, 2024

Its 40% free-cash-flow margin and return on invested capital (ROIC) are both impressive. High-growth companies often burn cash or maintain low profit margins as they invest in product quality or marketing. Should you invest $1,000 in Palo Alto Networks right now? That helped to propel it into a profitable range.

Shareholders 243

Shareholders Capital Portfolios Returns 243

The Motley Fool

JANUARY 12, 2024

With a market capitalization of $345 billion and trailing-12-month revenue of $154 billion, Home Depot (NYSE: HD) is a business that just about every investor is familiar with these days. This is difficult for shareholders to fathom after years of consistent top-line gains. Through its network of more than 2,000 stores in the U.S.,

Leveraging 246

Leveraging Banks Shareholders Capital 246

The Motley Fool

SEPTEMBER 5, 2023

had $147 billion in cash, cash equivalents, and short-term investments on its balance sheet as of June 30 -- a treasure chest of investable capital. To quote Buffett, "A truly great business must have an enduring 'moat' that protects excellent returns on invested capital."

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The Motley Fool

NOVEMBER 24, 2023

The company's return on invested capital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. That's not a misleading accounting ratio, either -- Emerson's free cash flow was more than $1 billion higher than its cash distributions to shareholders last year.

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Debt Shareholders Prospects Portfolios 234

The Motley Fool

DECEMBER 2, 2024

The bull market could deliver several more years of great returns, but history shows us the market will have ups and downs. When those down years come, it can be comforting to have a portfolio full of businesses that pay consistent dividends to their shareholders.

Capital 246

Capital Shareholders Returns Portfolios 246

The Motley Fool

JANUARY 27, 2024

Return on invested capital also has been on the rise over the past year. AMZN Return on Invested Capital data by YCharts These moves should benefit the company in better times, too. Should you invest $1,000 in Amazon right now? In the quarter, half of Mac and iPad buyers were new to those products.

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Debt Return On Investment Shareholders Capital 241

The Motley Fool

AUGUST 6, 2023

The logic behind the spinoff was that it would unlock shareholder value and allow each company to more easily pursue mergers and acquisitions (M&A), allocate capital, and compensate employees as a pure play focused on one industry. The logistics services provider has come a long way since it was spun off from XPO in 2021.

Mergers and Acquisitions 237

Mergers and Acquisitions Amortization Depreciation Earnings Before Interest 237