The Canadian Investor 6 Underrated Metrics Every Stock Investor Should Use
Feb 2, 2026
They highlight underrated financial metrics the media ignores, like free cash flow per share and free cash flow payout ratio. They dive into net interest margin, stock-based compensation, leverage and interest coverage. They analyze Pure Storage as an AI infrastructure play with a subscription-heavy model and discuss hardware-as-a-service risks and competitive pressures.
AI Snips
Chapters
Transcript
Episode notes
Prioritize Free Cash Flow Per Share
- Use free cash flow per share to see how much cash each share generates and to account for dilution.
- Track consistent growth in free cash flow per share as a stronger indicator of long-term outperformance.
Check Dividends Against Free Cash Flow
- Use the free cash flow payout ratio (trailing 12 months) to judge dividend sustainability instead of the earnings payout ratio.
- Watch for companies paying dividends above their free cash flow; those dividends are at high risk of cuts.
BCE's Dividend Cut Was Predictable
- Simon points to BCE as a case where high free cash flow payout signaled an eventual dividend cut well before headlines did.
- He says watching that ratio would have saved investors money by predicting the unsustainable dividend.