Energy Solutions,'s total free cash flow for the
months ended in Mar. 2013 was
€-18 Mil.
Its total free cash flow for the trailing twelve months (TTM) ended in Mar. 2013 was €43 Mil.
Energy Solutions,'s Free Cash Flow per Share for the
months ended in Mar. 2013 was €-0.20.
Its free cash flow per share for the trailing twelve months (TTM) ended in Mar. 2013 was €0.48.
The historical data trend for Energy Solutions,'s Free Cash Flow 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.
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.
Energy Solutions,'s Free Cash Flow for the fiscal year that ended in Dec. 2012 is calculated as
Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was €43 Mil.
* 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.
Energy Solutions, (FRA:3IQ1) Free Cash Flow 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.
* 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.
Energy Solutions, Free Cash Flow Related Terms
Thank you for viewing the detailed overview of Energy Solutions,'s Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.
EnergySolutions, Inc. was initially formed as Envirocare of Utah, Inc. in 1988. In January 2005, the Company converted to a limited liability company, Envirocare of Utah, LLC (Envirocare). Immediately thereafter, the sole member of Envirocare sold all of its member interest to ENV Holdings LLC. In 2006, it changed its name from Envirocare of Utah, LLC to EnergySolutions, LLC. On November 20, 2007, the date of the completion of its initial public offering, it completed its conversion to a corporate structure whereby EnergySolutions, LLC converted to EnergySolutions, Inc. It is now organized and existing under the General Corporation Law of the State of Delaware. The Company is a provider of specialized, technology-based nuclear services to government and commercial customers. Its range of nuclear services includes engineering, operation of nuclear reactors, in-plant support services, spent nuclear fuel management, D&D, logistics, transportation, processing and disposal. The Company also owns and operates strategic facilities that complement its services and uniquely position it to provide a single-source solution to its customers. It provides its services through four business segments: Federal Services; Commercial Services; Logistics, Processing and Disposal (LP&D); and International. The services that it provides to its government customers include the on-site characterization, sorting, segregation, transportation, management and disposal of classified and unclassified solid and liquid LLRW, MLLW and other special wastes. The Company also manages high-level radioactive waste inventories at a number of government sites, pending their future off-site disposition. In addition, it performs D&D and demolition of facilities, including disposal of radioactive materials. Its work includes the development of technologies, engineering, fabrication and operation of facilities to reduce the hazards posed by high-level radioactive waste pending final disposition in a national geological repository. It provides a range of on-site services to commercial customers, including commercial power and utility companies that operate nuclear power plants, pharmaceutical companies, research laboratories, universities, industrial facilities and other entities that generate radioactive materials or are involved in the nuclear services industry. The Company's services include D&D, project planning, site surveys, radioactive material characterization and management, liquid waste processing, spent nuclear fuel services, emergency response and other nuclear services. It provides a range of logistics, processing and disposal services and own and operate strategic facilities for the safe processing and disposal of radioactive materials. The Company's transportation and logistics services encompass all aspects of transporting radioactive materials, including obtaining all required local and federal licenses and permits, loading and bracing shipments, conducting
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