These Stocks Convert >100% of Their Earnings into Cash Flow

Strong earnings are important, but what truly matters to long-term investors is how much of those earnings turn into real, usable cash. 

Some companies on the Qatar Stock Exchange stand out for doing exactly that.

The chart highlights firms with an FCF/EBITDA ratio above 100%, meaning they generate more free cash flow than accounting earnings. This ratio is a simple measure of cash conversion: Free Cash Flow divided by EBITDA.

 A value greater than 100% signals that the company efficiently turns its operating profit into actual cash after covering necessary costs.

Beema (BEMA) leads the group with a ratio of 198%, followed by Doha Insurance (DOHI) at 162%. Gulf Warehousing (GWCS), Ezdan Real Estate (ERES), Qatar Islamic Insurance (QISI), and Qatar Cinema (QCFS) all record ratios at or slightly above 100%. 

These numbers do not imply future performance or guarantee stability, but they indicate strong cash generation during the measured period.

For investors in Qatar, understanding cash conversion adds depth beyond headline earnings. 

Companies that consistently generate free cash flow often have greater flexibility in areas such as reinvestment, dividends, or reducing debt.

It also provides a clearer picture of business quality, especially in markets where capital intensity varies by sector.

This metric is not a standalone decision-maker, but it is a useful tool for evaluating how efficiently a company turns its operations into cash—an important insight for disciplined investing on the QSE.

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