Fitbit, Inc. (NYSE: FIT) continues to drive revenue based on aerobic and fashionable aspirations of the hope-to-be-thin consumer. Tracking steps, however, is an ability that GPS tech, e.g. Garmin Ltd. (NASDAQ: GRMN), has long had under grasp. Smartwatches have also been well covered by Alphabet, Inc. (NASDAQ; GOOGL) and Apple, Inc. (NASDAQ: AAPL). In some ways, Fitbit sprung amongst sleeping giants, but then those giants struck back.
The stock shares of Fitbit took to early flight, but have since plummeted towards a more acceptable reality. Is this a tech IPO bust or a trusted growth stock? Will it survive in a land of easily replicable concept: fitness tracking? The answers are debatable and definitely tradeable.
Here is a swift look at Fitbit's Free Cash Flow (FCF) Yield for Q2 2016:
That is to say, Fitbit's FCF of $350m is approximately 10.5% of the stock's market capital; 15.5% of the enterprise value.
Free Cash Flow can be tabulated by taking the value of the company's operating cash flow and subtracting from it the value of capital expenses. The yield is then formulated by dividing the result by either the market capital or enterprise value.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Visit DIY Stock Investor, the online newsletter-hub regarding stock analysis.
President Donald Trump put pressure on auto makers to keep manufacturing in the United States. The relationship does not appear to be completely adversarial as key CEOs later met with him at the White House for a positive meeting of the minds. Ford Motor Company claims to have canceled $1.6b for a new Mexico plant and diverted $700m towards domestic operations. The company's free cash flow (FCF) yield is strong as so is the dividend yield.
Follow The Swift FCF Yield to read more.
TipRanks, the world's leading financial accountability engine, collects data from over 36,000 corporate insiders and ranks them based on their success rate and average return.
Buy-side analysis of stocks:
1. Interview: Veru Healthcare CEO Dr. Mitchell Steiner
2. The Next Snowbike Could Be A Harley-Davidson Takeover Target
3. Boeing Vs. The Barnstormers Of Space
Articles are written by Travis Brown at Seeking Alpha. Information covers stocks in the NASDAQ stock market and NYSE stock market.