Free Cash Flow for Opensys is still strong

As most business people and investors would agree, Free Cash Flow (FCF) is a very important indicator for any investments. From FCF, is where the company pays out its dividend. Examples of very strong FCF companies are Apple (which is why they started to issue dividend recently), Intel, Microsoft. Locally, there are quite many, the two strong telcos (Maxis, Digi), Nestle, Dutch Lady and another which I have mentioned a lot, Jobstreet. There are many more but some of those companies are actually pretty expensive.

Here however, I would like to highlight one very smallish which I have mentioned before, Opensys where the FCF against its revenue is awesome especially for the last 5 to 6 years. As mentioned before as well, the low profit was because of its high amortisation and depreciation charges in which the amount would probably reduce over the next 1 to 2 years. Anyway, who cares Net Profit. Isn't cashflow more important?

Update of Opensys' important numbers

Today, it is trading at RM29 million market capitalization. Hence if you are doing a ratio of Market Cap against its latest FCF, the ratio is a 3.19x. Just imagine how low is that. Literally, it means in 3.19 years for you get back all your cash (if all are paid out as dividends).