DuPont de Nemours (DuPont de Nemours) Free Cash Flow

: $-462 Mil (TTM As of Dec. 2023)

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DuPont de Nemours's total free cash flow for the months ended in Dec. 2023 was $228 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2023 was $-462 Mil.

DuPont de Nemours's Free Cash Flow per Share for the months ended in Dec. 2023 was $0.53. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2023 was $-1.01.

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, DuPont de Nemours's highest 3-Year average Free Cash Flow per Share Growth Rate was 90.10% per year. The lowest was -52.70% per year. And the median was 20.30% per year.

DuPont de Nemours Free Cash Flow Historical Data

The historical data trend for DuPont de Nemours'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.

DuPont de Nemours Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Free Cash Flow

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-1,243.00

2,831.00

-853.00

-74.00

-462.00

DuPont de Nemours Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Free Cash Flow	Take a 7-Day Free Trial															-636.00	102.00	348.00	-1,140.00	228.00

DuPont de Nemours 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.

DuPont de Nemours's Free Cash Flow for the fiscal year that ended in Dec. 2023 is calculated as

Free Cash Flow (A: Dec. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	1918	+	-2380
	=	-462

DuPont de Nemours's Free Cash Flow for the quarter that ended in Dec. 2023 is calculated as

Free Cash Flow (Q: Dec. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	373	+	-145
	=	228

Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-462 Mil.

DuPont de Nemours (NYSE:DD) 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 Dec23, DuPont de Nemours's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec23)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0.81714286	/	76.93	+	0.0139
	=	2.45 %

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.

DuPont de Nemours Free Cash Flow Related Terms

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DuPont de Nemours (DuPont de Nemours) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » DuPont de Nemours Inc (NYSE:DD) » Definitions » Free Cash Flow

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Traded in Other Exchanges

DD:Mexico 1DD:Italy 6D8:Germany 6D81:Germany 6D81:Germany DDNB34:Brazil DD:Argentina

Address

974 Centre Road, Building 730, Wilmington, DE, USA, 19805

Website

https://www.dupont.com

DuPont is a diversified global specialty chemicals company created in 2019 as a result of the DowDuPont merger and subsequent separations. Its portfolio includes specialty chemicals and downstream products that serve the electronics and communication, automotive, construction, safety and protection, and water management industries. DuPont benefits from the ability to produce patented specialty chemicals that command pricing power. Noteworthy products include Kevlar, Tyvek, and Nomex, which have evolved over time to enable a wide range of applications across multiple industries.

Executives

Raj Ratnakar	officer: SVP & Chief Strategy Officer	C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203
Jon D. Kemp	officer: President, Electronics & Indus	974 CENTRE ROAD, CRP 730, WILMINGTON DE 19805
Michael G. Goss	officer: Controller	974 CENTRE ROAD, CRP 730, WILMINGTON DE 19805
Kristina M Johnson	director	19 HEATH PL, DURHAM NC 27705
Amy G. Brady	director	127 PUBLIC SQUARE, CLEVELAND OH 44114
Deanna Mulligan	director	7 HANOVER SQUARE, NEW YORK NY 10004
Du Pont Eleuthere I	director	1007 MARKET STREET, WILMINGTON DE 19810
Raymond J Milchovich	director	C/O FOSTER WHEELER LTD, PERRYVILLE CORP PARK, CLINTON NJ 08809-4000
Kissam Luther C Iv	director	3801 BERESFORD ROAD, CHARLOTTE NC 28211
Ruby R Chandy	director	630 DUNDEE ROAD, SUITE 400, NORTHBROOK IL 60062
Frederick M. Lowery	director	974 CENTRE ROAD, CRP 730, WILMINGTON DE 19805
Steven Sterin	director	19100 RIDGEWOOD PARKWAY, SAN ANTONIO TX 78259
Terrence R Curtin	director	C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
Alexander M Cutler	director	EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114
Leland Weaver	officer: President, Water & Protection	974 CENTRE ROAD, CRP 730, 5216, WILMINGTON DE 19805