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Century Bancorp (Century Bancorp) Free Cash Flow : $39.5 Mil (TTM As of Sep. 2021)


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What is Century Bancorp Free Cash Flow?

Century Bancorp's total free cash flow for the months ended in Sep. 2021 was $12.3 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Sep. 2021 was $39.5 Mil.

Century Bancorp's Free Cash Flow per Share for the months ended in Sep. 2021 was $1.65. Its free cash flow per share for the trailing twelve months (TTM) ended in Sep. 2021 was $5.29.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Century Bancorp was 4.00% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 25.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 32.00% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 7.90% per year. 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.

During the past 13 years, Century Bancorp's highest 3-Year average Free Cash Flow per Share Growth Rate was 202.50% per year. The lowest was -69.00% per year. And the median was 6.20% per year.


Century Bancorp Free Cash Flow Historical Data

The historical data trend for Century Bancorp'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.

Century Bancorp Free Cash Flow Chart

Century Bancorp Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Free Cash Flow
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.74 18.34 37.19 34.71 36.00

Century Bancorp Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 11.09 3.02 13.65 10.52 12.35

Century Bancorp 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.

Century Bancorp's Free Cash Flow for the fiscal year that ended in Dec. 2020 is calculated as

Free Cash Flow (A: Dec. 2020 )=Cash Flow from Operations+Capital Expenditure
=44.375+-8.376
=36.0

Century Bancorp's Free Cash Flow for the quarter that ended in Sep. 2021 is calculated as

Free Cash Flow (Q: Sep. 2021 )=Cash Flow from Operations+Capital Expenditure
=14.607+-2.261
=12.3

Free Cash Flow for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $39.5 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.


Century Bancorp  (NAS:CNBKA) 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 Sep21, Century Bancorp's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Sep21)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/115.24+0
=0.00 %

* 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.


Century Bancorp Free Cash Flow Related Terms

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Century Bancorp (Century Bancorp) Business Description

Traded in Other Exchanges
N/A
Address
400 Mystic Avenue, Medford, MA, USA, 02155
Century Bancorp Inc is a commercial bank that provides a range of services to commercial enterprises, state and local governments and agencies, non-profit organizations and individuals. It makes commercial loans, real estate and construction loans and consumer loans, and accepts savings, time, and demand deposits. The bank also offers its corporate and institutional customers automated lockbox collection services, cash management services and account reconciliation services, and actively promotes the marketing of these services to the municipal market. Century Bancorp earns its revenue from interest income.
Executives
Barry R Sloane director, officer: Chairman, CEO and President 5 SPINNAKER DRIVE, PO BOX 247, BARRINGTON RI 02806
James J Filler 10 percent owner 2964 SHOOK HILL PARKWAY, BIRMINGHAM AL 35223
Paul A Evangelista officer: Executive Vice President CENTURY BANK & TRUST CO 400 MYSTIC AVE MEDFORD MA 02155
Linda Sloane Kay director, officer: Vice Chair 400 MYSTIC AVENUE MEDFORD MA 02155
Stephen R Delinsky director 400 MYSTIC AVENUE MEDFORD MA 02155
Brian J. Feeney officer: Executive Vice President 400 MYSTIC AVENUE MEDFORD MA 02155
William P Hornby officer: CFO and Treasurer 400 MYSTIC AVENUE MEDFORD MA 02155
Louis J Grossman director 400 MYSTIC AVENUR MEDFORD MA 02155
Joseph J Senna director
Sloane Family Enterprises, Limited Partnership 10 percent owner 400 MYSTIC AVE MEDFORD MA 02155
Jo Ann Simons director 400 MYSTIC AVENUE MEDFORD MA 02155
Jackie Jenkins-scott director 400 MYSTIC AVENUE MEDFORD MA 02155
George F Swansburg director
Joseph P Mercurio director BOSTON UNVIERSITY 25 BUICK STREET BOSTON MA 02215
Fraser Lemley director