Free Cash Flow - a sign of profit earning power

HappyHarry said: "I think Free Cash Flows show just how well a company operates. If you examine [url=http://finance.yahoo.com/q/ks?s=CHS]CHS[/url], you see they generates over $100,000,000 of free cash flow on just over $1 billion in sales. Plus consider: [list] [*]21.15% Operating margin [*]13.43% Profit margin [/list] Any company that can generate those types of margin has a competitive advantage of some sort, and peculiar pricing power which almost always guarantees stellar performance for the stock. The more actual cash a company has, the less reliant they are on accounting tricks."

StockFreak said: "Wow, i couldnt believe i was looking at a clothing retailer...."

HappyHarry said: "Indeed. Their basic store setup is quite nice. They have smaller floor models, and a few employees. All the clothes and accessories are custom designed by the company. The clothes are very unique and any women over 30 you bring in there will LOVE them. The workers are friendly, and well trained and the work with the shoppers. The last time I was in Chico's I watched 2 first time buyers purchase $400 and $850 on their first visit in the store! Their CEO is also regarded as one of the most ethical people in business. He also will pick up the phone and call any dis-satisfied customer HIMSELF! I bet when the CEO calls, it makes a great impression on the customer. Chico's is 100% excellent in their operations. Visit a store nearby, check out the operation, and you'll see."