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Pep Boys - Manny Moe & Jack (FRA:PBS) Free Cash Flow per Share : €0.87 (TTM As of Oct. 2015)


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What is Pep Boys - Manny Moe & Jack Free Cash Flow per Share?

Pep Boys - Manny Moe & Jack's Free Cash Flow per Share for the three months ended in Oct. 2015 was €0.06. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Oct. 2015 was €0.87.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.

The historical rank and industry rank for Pep Boys - Manny Moe & Jack's Free Cash Flow per Share or its related term are showing as below:

FRA:PBS's 3-Year FCF Growth Rate is not ranked *
in the Vehicles & Parts industry.
Industry Median: 1.2
* Ranked among companies with meaningful 3-Year FCF Growth Rate only.

Pep Boys - Manny Moe & Jack Free Cash Flow per Share Historical Data

The historical data trend for Pep Boys - Manny Moe & Jack's Free Cash Flow per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pep Boys - Manny Moe & Jack Free Cash Flow per Share Chart

Pep Boys - Manny Moe & Jack Annual Data
Trend Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15
Free Cash Flow per Share
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.66 -0.02 0.47 0.07 -0.64

Pep Boys - Manny Moe & Jack Quarterly Data
Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15
Free Cash Flow per Share Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.29 0.06 0.37 0.39 0.06

Competitive Comparison of Pep Boys - Manny Moe & Jack's Free Cash Flow per Share

For the Auto Parts subindustry, Pep Boys - Manny Moe & Jack's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pep Boys - Manny Moe & Jack's Price-to-Free-Cash-Flow Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Pep Boys - Manny Moe & Jack's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where Pep Boys - Manny Moe & Jack's Price-to-Free-Cash-Flow falls into.



Pep Boys - Manny Moe & Jack Free Cash Flow per Share Calculation

Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Note: GuruFocus does not calculate Free Cash Flow Per Share when Capital Expenditure is 0.

Pep Boys - Manny Moe & Jack's Free Cash Flow Per Share for the fiscal year that ended in Jan. 2015 is calculated as

Free Cash Flow Per Share(A: Jan. 2015 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(23.629+-57.919)/53.608
=-34.29/53.608
=-0.64

Pep Boys - Manny Moe & Jack's Free Cash Flow Per Share for the quarter that ended in Oct. 2015 is calculated as

Free Cash Flow Per Share(Q: Oct. 2015 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(12.181+-9.153)/54.605
=3.028/54.605
=0.06

Free Cash Flow per Share for the trailing twelve months (TTM) ended in Oct. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €0.87

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Pep Boys - Manny Moe & Jack  (FRA:PBS) Free Cash Flow per Share Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Jan15, Pep Boys - Manny Moe & Jack's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jan15)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.19485714/13.36+-0.1535
=-13.89 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


Pep Boys - Manny Moe & Jack Free Cash Flow per Share Related Terms

Thank you for viewing the detailed overview of Pep Boys - Manny Moe & Jack's Free Cash Flow per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


Pep Boys - Manny Moe & Jack (FRA:PBS) Business Description

Traded in Other Exchanges
N/A
Address
Pep Boys - Manny Moe & Jack began operations in 1921. The Company together with its subsidiaries offers automotive service, tires, parts and accessories. The Company operates in the U.S. automotive aftermarket, which has two general lines of business: the Service business, commonly known as Do-It-For-Me, or "DIFM" (service labor, installed merchandise and tires) and the Retail business, commonly known as Do-It-Yourself, or "DIY" (retail merchandise) and commercial. The Company's store format is the Supercenter, which serves both "DIFM" and "DIY" customers with quality service offerings and merchandise. The Company is complementing the existing Supercenter store base with Service & Tire Centers. These Service & Tire Centers are designed to capture market share and leverage the existing Supercenter and support infrastructure. The Company currently operates stores in 35 states and Puerto Rico. The Company has eight operating segments defined by geographic regions. Each Pep Boys Supercenter carries a similar product line, with variations based on the number and type of cars in the market where the store is located. A Pep Boys Service & Tire Center carries tires and a limited selection of its products. The Company's product lines include: tires batteries; new and remanufactured parts for domestic and import vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and a limited amount of select non-automotive merchandise. In addition to offering various high quality name brand products, the Company sells an array of high quality products under various private label names. The Company sells tires under the names DEFINITY, FUTURA and CORNELL, and batteries under the name PROSTART. It also sells wheel covers under the name FUTURA; air filters, anti-freeze, chemicals, cv axles, hub assemblies, lubricants, oil, oil filters, oil treatments, transmission fluids, custom wheels and wiper blades under the name PROLINE; alternators, battery booster packs, alkaline type batteries and starters under the name PROSTART; power steering hoses, chassis parts and power steering pumps under the name PROSTEER; brakes under the name PROSTOP and brakes, batteries, starters, ignitions and chassis under the name VALUEGRADE. The Company's commercial automotive parts delivery program, branded PEP EXPRESS PARTS, is designed to increase the Company's market share with the professional installer and to leverage its inventory investment. The program satisfies the commercial customer's automotive inventory needs by taking advantage of the breadth and quality of the Company's parts inventory as well as its experience supplying its own service bays and mechanics. The Company has a point-of-sale system in all of its stores, which gathers sales and inventory data by stock-keeping unit from each store on a daily basis. It has an electronic parts catalog that allows its associates to efficiently look up the parts that its customers need

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