Cash flow is a company’s operating inflow of cash minus its outflow of cash. It’s calculated by adding net income plus non-cash charges such as depreciation, depletion and amortization. Simply put, it’s earnings without taking into account non-cash charges such as depreciation, depletion and the write-off of intangible assets over time.
Cash flow is particularly useful in valuing companies in industries in which depreciation and depletion charges are based on the historical value of assets instead of current values-industries such as oil and gas and real estate. Note though, that as with any financial ratio or number, you have to look at it in context with many other factors. That’s not to say that there won’t be surprises that affect every company in a particular industry. But well-established stocks have the asset size and the financial clout-including solid balance sheets and strong cash flow-to weather market downturns or changing industry conditions.
In summary, cash flow is in many ways a better measure of a company’s performance than earnings. While reported earnings are subject to accounting interpretation and can be restated in later years, cash flow is a measure of the cash flowing into a company right now less cash outlays.
Investors should always seek out information about cash flow when analysing a stock-but you should also keep TSI Network’s three-part Successful Investor philosophy in mind:
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ANDREW PELLER LTD., $13.92, Toronto symbol ADW.A, is Canada’s second-largest producer of wines, after Constellation Brands.
Peller will raise its quarterly dividend by 4.9%, starting with the July 2019 payment. Investors will then receive $0.05375 a share, up from $0.05125. The new annual rate of $0.215… Read More
Stronger demand for product support services, rental equipment and industrial parts drove a 9.4% revenue boost for this heavy equipment seller and servicer in the most-recent quarter.
Restructuring and a significant acquisition should help keep cash flow high enough to support this dividend.
The stock trades… Read More
A strong focus on efficiency and investments in new rolling stock and software helped this rail giant increase revenue 6.3% in the most recent quarter, with earnings also up.
The company plans to spend $1.6 billion on upgrades to tracks and locomotives in 2019, mostly… Read More
BMTC GROUP INC., $13.06, symbol GBT on Toronto, has 36 outlets and is one of Quebec’s biggest retailers of furniture, electronics and appliances. The company mainly sells these items through two chains: Brault & Martineau and Ameublements Tanguay.
BMTC has changed its fiscal year end to… Read More
UNITED TECHNOLOGIES CORP., $125.30, symbol UTX on New York, is an industrial conglomerate with three operating segments: Aerospace, including Rockwell Collins and Pratt & Whitney; Carrier air conditioning; and Otis elevators.
United Technologies, which is in the midst of spinning off its Carrier and Otis segments… Read More
UNITED TECHNOLOGIES CORP., $125.30, New York symbol UTX, completed its acquisition of Rockwell Collins on November 26, 2018, for $30.6 billion in cash and stock (including that firm’s debt). Rockwell is a leading maker of aircraft components such as cabin interiors, computerized flight controls and… Read More
Find major Canadian mining stocks that meet these criteria and you’ll be able to add valuable Resource holdings to your diversified portfolio
Canadian mining stocks can be strong performers when commodity prices move up. Mining is a big part of the global economy: mining companies provide… Read More
REITMANS (CANADA) LTD., $2.10, symbol RET.A on Toronto, owns 594 women’s clothing stores across Canada.
Those outlets are divided among several brands: Reitmans (259 stores), Penningtons (115), Addition Elle (80), RW & Co. (82) and Thyme Maternity (58).
In the three months ended May 4, 2019, sales… Read More
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If demand for higher-profit-margin marijuana edibles, tinctures, softgels, vape pens and so on continues to rise, this company is well positioned to profit. Meanwhile, though, it could face new competition from bigger… Read More
Aiming for dividend capture strategy returns may look like a sure way to make money. But there are risks you need to watch out for
“Dividend capture” is the trading technique of buying a stock just before the dividend is paid, holding it just long enough… Read More
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
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Special Note for Parents
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TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
How do we maintain the integrity of your personal information?
TSI Network has procedures in place to keep your personal information accurate, complete and current for the purposes for which it is collected and used. You may review the information that you have provided to us and where appropriate you may request that it be corrected. If you wish to review your personal information please send a request to: privacy@thesuccessfulinvestor.com.
How do I withdraw my consent to use Personal Information? Access, Correction, Inquiries and Complaints
If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
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How can you ask questions about our Privacy Policy and access your personal information?
The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.
What Choices Do I Have?
Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
Legal Notices and Disclaimers
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