In a story on today’s Motley Fool, the financial website is hyping Suburban Propane as a lesson for investors to consider the “free cash flow” of their stock picks.
(Free cash flow is the money a business has after paying its expenses, according to the glossary at investorwords.com. And it can be a helpful measurement of a company’s general health.)
Ranked by revenue, Suburban trails a few other national retailers. But in turning its revenues into free cash flow, the New Jersey-based dealer comes out on top. And the Fool’s feelings are clear on that point. “Here’s how Suburban Propane Partners Is Making You So Much Cash,” the headline reads.
But that’s not enough to earn them “perfect stock” status. Last week, Motley Fool scored Suburban a 3 out of 10 on its perfect stock scorecard.
Shares of Suburban (NYSE: SPH) were down a nickel in afternoon trading, at $53.98.