The remaining cash after these investments is available for the company to use at its discretion, whether to repay debts, repurchase shares, distribute special dividends, diversify investments, or increase cash reserves. This measure is highly useful for assessing a company's financial capacity and for calculating its value using the discounted free cash flow (DCF) method. Free cash flow is determined by subtracting investing cash flow from operating cash flow, or by deducting changes in working capital, taxes, and net investments from EBITDA.

  • Veeva Systems: Leader in Cloud Solutions for Life Sciences

Veeva Systems is a top provider of cloud-based solutions tailored for the life sciences industry. Based in Pleasanton, California, Veeva offers a comprehensive suite of software, data, and consulting services, addressing the needs of life sciences companies throughout the entire process, from research and development (R&D) to commercialization.

The company’s Veeva Development Cloud suite supports various functions such as clinical, regulatory, and safety operations within life sciences companies. For instance, Veeva Vault Clinical offers a fully integrated technology ecosystem for the management of clinical trials. Veeva also provides software and analytics solutions (Veeva Development Cloud) that empower sales and marketing teams to collaborate efficiently. Veeva Data Cloud further enhances its offerings.

Veeva Systems primarily serves pharmaceutical, biotech, and medical device companies. Major clients include industry leaders such as Eli Lilly, Merck & Co, Novo Nordisk, Johnson & Johnson, AstraZeneca, Gilead Sciences, Bayer, Novartis, Moderna, and Sanofi.

Most of Veeva’s revenue comes from subscription services (80.45%), with the remaining 19.55% from professional and other services. In 2023, the company generated $2.155 billion in revenue, with a forecast of $2.364 billion for 2024. Veeva continues to grow steadily, maintaining high operating margins and a strong financial position.

Veeva remains committed to innovation, particularly in incorporating artificial intelligence into its solutions. For example, the Vault Direct Data API allows customers to extract data more quickly than competitors. The company projects revenues between $2.704 and $2.710 billion for fiscal year 2025, with non-GAAP earnings per share of $6.22.

With its leading position in cloud solutions for life sciences, Veeva is well-positioned to continue growing and delivering value to its shareholders.

More: Leader in cloud solutions for life sciences

Veeva Systems free cash flow evolution chart

  • Aristocrat Leisure: A leader in entertainment and gaming

Aristocrat Leisure is an Australian company specializing in entertainment and content creation. Headquartered in Sydney, it offers a wide range of products and services, including electronic gaming machines, casino management systems, free-to-play mobile games, and online real-money gaming.

The company is structured into three main operating units: Aristocrat Gaming, Pixel United, and Anaxi.

  • Aristocrat Gaming is a leading content and technology provider, operating in over 300 gaming jurisdictions worldwide. Some of its popular games include Dollar Storm, Buffalo Gold Revolution, Choy's Kingdom, Aristocrat Legends, Dragon Link, and Wild Wild.
  • Pixel United encompasses brands such as Product Madness, Plarium, and Big Fish Games. Big Fish offers a broad range of games, including EverMerge, Cooking Craze, Gummy Drop, Big Fish Casino, Jackpot Magic Slots, and Fairway Solitaire.
  • Anaxi focuses on real-money online gaming, delivering interactive digital entertainment experiences.

Aristocrat Leisure serves a global customer base, with a significant presence in the Americas, which accounts for 47.23% of its revenues. The company has shown consistent growth, with revenues reaching AUD 6,296 million in 2023, up from AUD 5,574 million in 2022.

Aristocrat Leisure is recognized for its innovation and ability to diversify its offerings in the entertainment and gaming sectors. With a strong global presence and a strategy focused on organic growth and strategic acquisitions, the company continues to reinforce its position as a market leader.

Aristocrat Leisure free cash flow evolution chart

  • Verisign: A pillar of domain name services

VeriSign, headquartered in Mountain View, California, is a prominent technology company specializing in IT services and consulting, known for its vital role in securing telecommunications and Internet infrastructures. It offers domain name registration and infrastructure security services, primarily catering to defense organizations.

VeriSign's business model revolves around two key areas: managing critical Internet infrastructures and providing domain name registry services. The company oversees the registries for some of the Internet's most significant domains, including .com and .net. Beyond domain name reservations, VeriSign operates two of the thirteen global root servers, playing a crucial role in maintaining the stability and security of the Domain Name System (DNS).

In 2023, VeriSign reported revenues of $1.493 billion, an increase from $1.425 billion in 2022. The company posted a net income of $818 million, with earnings per share (EPS) of $7.9.

VeriSign remains a key player in the domain name services and Internet security sectors, with a strong foothold in the U.S. market and solid profitability. While its free cash flow growth prospects are moderate, the company continues to deliver stable financial performance and maintain high margins.

Verisign free cash flow evolution chart

  • Rollins: A world leader in pest control

Atlanta-based Rollins is one of the world's leading providers of pest control services. Founded in 1948, the company became an industry giant following its acquisition of Orkin Exterminating Company in 1964. Today, Rollins offers pest and rodent control services to a broad customer base, including both individuals and businesses.

The company specializes in pest inspection and control, targeting insects, rodents, and reptiles. The majority of Rollins' revenue, 92.7%, comes from the United States, with the remaining portion generated from international markets, where the company is expanding through strategic acquisitions.

Rollins faces considerable competition from Rentokil Initial plc, another key player in the pest control industry. However, Rollins holds a dominant position due to its aggressive acquisition strategy and stable family management. The Rollins family controls 55% of the voting shares, ensuring continuity and stability in the company’s leadership.

In 2023, Rollins reported sales of $3.073 billion, with a net margin of 13.7%. The company continues to grow through external acquisitions, having bought over 100 companies in the past three years. In 2023, the $339.5 million acquisition of Fox Pest Control further strengthened its market position.

Rollins distinguishes itself through a resilient business model that generates recurring revenues. With stable family leadership and a successful acquisition strategy, the company is well-positioned to continue its growth and maintain its leadership in the global pest control industry.

Find out more: More pests please

Rollins free cash flow evolution chart

  • Alphabet: A diversified technology giant

Alphabet is a holding company primarily operating in the technology sector. Founded by Larry Page and Sergey Brin, it is currently led by CEO Sundar Pichai. Alphabet is organized into three main business divisions that contribute to its market dominance: Google Services (which includes Google Search, Chrome, Android, YouTube, Maps, Gmail, etc.), Google Cloud, and its Other Bets (such as Nest Labs, Calico, and Google X).

Alphabet’s customer base is vast and diverse, encompassing individual users as well as large enterprises. Its search and advertising services attract millions of daily users, while its cloud solutions and home automation products cater to businesses and consumers worldwide. Revenue growth is expected, driven by the recovery of the advertising market and the expansion of its cloud services. Alphabet’s innovations in artificial intelligence, particularly through the Gemini model, are also expected to fuel future growth.

In 2023, Alphabet generated significant free cash flow of $69.5 billion. With a long track record of producing strong free cash flow, the company is able to fund its investments and innovations without relying on debt.

With its global presence and diversified operations, Alphabet Inc. remains a dominant force in the technology sector. Its consistent ability to innovate and invest in cutting-edge technologies, while maintaining high profitability, secures its position as a key player in the market.

More: Alphabet, a still affordable ticket to AI

Alphabet free cash flow evolution chart