What does free cash flow margin mean?

How much real, spendable cash each sales dollar generates after reinvestment.

How do you interpret free cash flow margin?

A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.

How does free cash flow margin compare across companies?

Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.

W.P. Carey Inc. WPC Free cash flow margin

Discontinued — last reported Q3 '18

Free cash flow margin at other companies

Realty IncomeO

66.7%+2.7pp

VICI Properties Inc.VICI

63.1%+0.6pp

Invitation HomesINVH

43.2%+3.0pp

Regency CentersREG

51.5%0.0pp

Gaming and Leisure PropertiesGLPI

45.9%-22.0pp

CoStar GroupCSGP

6.9%—

Other financials

Income statement

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Revenue$454.5M+10.9%

Gross profit$412.4M+2.5%

Net income$176.3M+40.1%

EPS (diluted)$0.80+40.4%

Balance sheet

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Cash & equivalents$287.7M+32.2%

Total debt$9.3B+5.5%

Total equity$8.3B-0.2%

Total assets$18.2B+5.2%

Cash flow

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Operating cash flow$283.2M+3.7%

Valuation

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Market cap$15.86B+7.8%

Enterprise value$24.91B+6.7%

P/E30.7×-3.7×

P/S9×-0.2×

Profitability

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Gross margin100%+0.1pp

Net margin29.3%+2.7pp

Returns & leverage

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Return on equity6.2%+1.2pp

Debt / equity1.1×+0.1×

Where this comes from

Calculated from W.P. Carey Inc.’s reported figures.

free cash flow/total revenue=62.2%

Based on trailing twelve months.

The official record: W.P. Carey Inc.’s 10-Q, filed November 1, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does free cash flow margin mean?: How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?: A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?: Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.