FCF Machine
FCF margin > 15%, FCF exceeds net income, low debt.
A free cash flow margin above 15% means at least 15 cents of every sales dollar becomes cash the company can spend on dividends, buybacks or acquisitions. Free cash flow above net income suggests reported earnings are conservative.
Cash flow runs above earnings when a company underinvests, or when stock-based pay is added back, which is common at software companies.