Garage operator Standard Parking
I have to admit that, although the company's no Imperial Parking
The company's earnings release also stated that its business is somewhat seasonal, so I hesitate to take those free cash flow numbers and extrapolate a "run rate" on what Standard should earn through the rest of fiscal 2005. In guesstimating the company's forward cash-generating abilities, I turned to MSN Money, which notes that Standard generated $8.1 million in free cash flow during H2 2004. Pair that with Standard's just-announced $9.1 million from the past six months, and the company appears capable of ending this year about $17.2 million richer than it started out.
That gives this company, with its $191 million market cap, a price-to-free cash flow ratio of 11.1. Considering that analysts expect to see 10% long-term growth from Standard, its stock may not be an outright bargain, but it's not severely overpriced, either.
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Fool contributor Rich Smith has no position in any of the companies mentioned in this article.