Cash Flow Myths: Not All High-Flow Companies Are Great Investments
Update: 2025-11-19
Description
Cash Flow Doesnt Always Equal Great Investment: A Look at AbbVie, Encompass Health, and CME GroupDespite high free cash flow margins, AbbVie, Encompass Health, and CME Group face underlying issues that make them less-than-ideal investments. AbbVies underwhelming revenue growth and decreasing efficiency, Encompass Healths slow revenue growth and increasing capital intensity, and CME Groups slower revenue growth and earnings per share growth compared to peers, all suggest that strong cash flow alone doesnt guarantee a great investment. Its essential to delve deeper into a companys growth, operations, and capital management to identify those with long-term potential.
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