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American Independence (American Independence) Free Cash Flow : $0.3 Mil (TTM As of Jun. 2016)


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What is American Independence Free Cash Flow?

American Independence's total free cash flow for the months ended in Jun. 2016 was $-3.4 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Jun. 2016 was $0.3 Mil.

American Independence's Free Cash Flow per Share for the months ended in Jun. 2016 was $-0.42. Its free cash flow per share for the trailing twelve months (TTM) ended in Jun. 2016 was $0.04.

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 Free Cash Flow Growth Rate using Free Cash Flow per Share data.


American Independence Free Cash Flow Historical Data

The historical data trend for American Independence'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.

* Premium members only.

American Independence Free Cash Flow Chart

American Independence Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Free Cash Flow
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.13 7.57 16.19 4.15 16.56

American Independence Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
Free Cash Flow 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 5.95 6.59 3.25 -6.18 -3.39

American Independence Free Cash Flow Calculation

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.

American Independence's Free Cash Flow for the fiscal year that ended in Dec. 2015 is calculated as

Free Cash Flow (A: Dec. 2015 )=Cash Flow from Operations+Capital Expenditure
=16.558+0
=16.6

American Independence's Free Cash Flow for the quarter that ended in Jun. 2016 is calculated as

Free Cash Flow (Q: Jun. 2016 )=Cash Flow from Operations+Capital Expenditure
=-3.392+0
=-3.4

Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.3 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.


American Independence  (NAS:AMIC) 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.

Therefore, as of Jun16, American Independence's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jun16)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0.87733333/24.53+0.0708
=10.66 %

* 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.


American Independence Free Cash Flow Related Terms

Thank you for viewing the detailed overview of American Independence's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.


American Independence (American Independence) Business Description

Traded in Other Exchanges
N/A
Address
American Independence Corp is a Delaware corporation. The Company is an insurance holding Company, which provides specialized health coverage and related services to commercial customers and individuals. The Company focuses on niche health products and/or narrowly defined distribution channels in the United States. It's wholly owned subsidiary, Independence American Insurance Company, markets its products through IHC Risk Solutions, LLC, IHC Specialty Benefits, Inc., and IPA Family, LLC, which are subsidiaries of AMIC, and through independent brokers, producers and agents. Independence American is licensed to write property and/or casualty insurance in all 50 states and the District of Columbia, and has an A- (Excellent) rating from A.M. Best Company, Inc. Risk Solutions is a full-service direct writer of medical stop-loss insurance for self-insured employer groups. Risk Solutions has offices near Hartford, Connecticut and Philadelphia, Pennsylvania, and markets and underwrites employer medical stop-loss and group life mainly for Standard Security Life Insurance Company of New York. It also writes, to a much lesser extent, for three other carriers, including Madison National Life Insurance Company, Inc. and Independence American. Independence Holding Company and its subsidiaries including, among others, Standard Security Life and Madison National Life are collectively referred to as "IHC". Independence American writes group important medical, medical stop-loss, crucial medical plans for individuals and families, short-term medical, and dental, and began writing pet insurance in 2012.Independence American competes with many larger insurance and reinsurance companies and managed care organizations. Risk Solutions competes with many other managing general underwriters, insurance companies, and MCOs. AMIC is an insurance holding company; as such, AMIC and its subsidiaries are subject to regulation and supervision by multiple state insurance regulators, including the Office of the Insurance Commissioner of the State of Delaware.
Executives
Teresa A Herbert director, officer: CFO & SVP 96 CUMMINGS POINT RD, STAMFORD CT 06902
Ronald I Simon director 485 MADISON AVENUE, 14TH FLOOR, NEW YORK NY 10022
Thung Roy T K director, officer: CEO 96 CUMMINGS POINT RD STAMFORD CT 06902
James G Tatum director 96 CUMMINGS POINT RD STAMFORD CT 06902
David T Kettig director, officer: President 96 CUMMINGS POINT RD STAMFORD CT 06902
Steven B Lapin director 96 CUMMINGS POINT RD STAMFORD CT 06902
Brian Schlier officer: Corporate Vice President - Tax 96 CUMMINGS POINT RD STAMFORD CT 06902
Gary Balzofiore officer: Corporate Vice President 485 MADISON AVENUE, NEW YORK NY 10022
Jeffrey C Smedsrud officer: Senior Vice President 8009 34TH AVENUE SOUTH #360 BLOOMINGTON MN 55420
Erickson Bernon Reneld Jr officer: Chief Health Actuary and SVP INDEPENDENCE HOLDING COMPANY 485 MADISON AVENUE, 14TH FLOOR NEW YORK NY 10022
Scott Michael Wood officer: Senior Vice President 2101 W. PEORIA AVE, SUITE 100 PHOENIX AZ 85029
Paul R Janerico officer: VP - Internal Audit 96 CUMMINGS POINT RD STAMFORD CT 06902
Henry B Spencer officer: VP - Investments 96 CUMMINGS POINT ROAD STAMFORD CT 06902
Roy L Standfest officer: V.P.& Chief Investment Officer 96 CUMMINGS POINT RD STAMFORD CT 06902

American Independence (American Independence) Headlines

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