💵 Three capital-light cash cannibals

This week we're going to be looking for companies that have three rare characteristics:

• Significant buyback programmes
• Consistently highly cash returns on capital
• Predictable free cash flow growth

These are three characteristics that many of the companies in the LE portfolio possess. Let's take a look at four of the ten companies in my portfolio: FICO, Mastercard, MSCI and Fortinet.

The below shows that all four companies have undertaken significant buybacks (top row), consistently high returns on capital (middle row) and consistent free cash flow per share growth (bottom row).

The purpose of this week's analysis were to identify companies with similar properties. The starting point was the US large, mid and small cap indices.

The results are set out below, with companies in the LE portfolio highlighted in green: