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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SUNCOR ENERGY INC., $22.98, Toronto symbol SU, remains a buy for long-term gains.
The company is Canada’s largest integrated oil company, with major projects in the Alberta oil sands. Investors also gain exposure to Suncor’s four refineries (three in Canada and one in Colorado), along with… Read More
TC ENERGY INC., $60.65, Toronto symbol TRP, is our #1 Income Buy for 2020.
TC generates steady cash flow for investors mainly through a 92,600-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of… Read More
Understand that no investment is “safe”, but the safest blue chip stocks have a history of success and years of dividend payments
Top-quality stocks tend to lose less of their value in the kind of severe market setback we’re experiencing today. They also tend to bounce… Read More
Today’s extreme market volatility as a result of COVID-19 has created massive disruptions. However, after markets fall, they always recover. And our goal at The Successful Investor is to ensure that our readers are well-positioned with their investments when that happens. You’ll benefit most from… Read More
A: NorthWest Healthcare Properties REIT, $9.73, symbol NWH.UN on Toronto (Units outstanding: 160.1 million; Market cap: $1.7 billion; www.nwhreit.com), owns and operates a portfolio of medical office buildings (50%) as well as hospital and healthcare facilities (50%). The REIT’s units began trading in March 2010… Read More
A: Gilead Sciences Inc., $75.33, symbol GILD on Nasdaq (Shares outstanding: 1.3 billion; Market cap: $95.6 billion; www.gilead.com), is a biopharmaceutical company that discovers, develops, and commercializes medicines for a variety of conditions and diseases. The company was founded in 1987 and is headquartered in… Read More
1LIFE HEALTHCARE, $17.54, is a buy for aggressive investors. The company (symbol ONEM on Nasdaq) is a membership-based provider of primary health care that uses its One Medical technology platform. It has attracted more than 422,000 members in nine U.S. markets through online services and… Read More
Use these key tips to learn how to do dividend investing successfully to pick the best investments with the least amount of risk
Top-quality stocks tend to lose less of their value in the kind of severe market setback we’re experiencing today. They also tend to… Read More
A: Real Matters Inc., $11.85, symbol REAL on Toronto (Shares outstanding: 84.9 million; Market cap: $957.7 million; www.realmatters.com), provides technology and network management solutions to the mortgage lending and insurance industries in Canada and the U.S. The company is based in Markham, Ontario. Its clients… Read More
A: Dream Industrial REIT, $7.98, symbol DIR.UN on Toronto (Units outstanding: 152.2 million; Market cap: $1.2 billion; www.dreamindustrialreit.ca), offers investors a portfolio of industrial properties in North America and Europe.
The REIT, originally named Dundee Industrial REIT, first sold units to the public and began trading… 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 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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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.
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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.
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How can you ask questions about our Privacy Policy and access your personal information?
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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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Information presented on this web site or contained in our publications is not an offer, nor a solicitation, to buy or sell any securities referred to on the web site or in the publications. The material is general information intended for recipients who understand the risks associated with an investment in any securities referred to in the publications or on this web site. The Successful Investor has made no determination regarding whether an investment, course of action, or associated risks are suitable for the recipient.
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