Jewett-Cameron Trading Co (Jewett-Cameron Trading Co) Free Cash Flow

: $9.21 Mil (TTM As of Feb. 2024)

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Jewett-Cameron Trading Co's total free cash flow for the months ended in Feb. 2024 was $-2.41 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Feb. 2024 was $9.21 Mil.

Jewett-Cameron Trading Co's Free Cash Flow per Share for the months ended in Feb. 2024 was $-0.69. Its free cash flow per share for the trailing twelve months (TTM) ended in Feb. 2024 was $2.63.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Jewett-Cameron Trading Co was 2359.80% 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, Jewett-Cameron Trading Co's highest 3-Year average Free Cash Flow per Share Growth Rate was 109.30% per year. The lowest was -37.00% per year. And the median was 11.90% per year.

Jewett-Cameron Trading Co Free Cash Flow Historical Data

The historical data trend for Jewett-Cameron Trading Co'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.

Jewett-Cameron Trading Co Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Free Cash Flow

6.27

-2.67

-5.62

-4.70

5.27

Jewett-Cameron Trading Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Free Cash Flow																-2.37	2.95	4.04	4.63	-2.41

Jewett-Cameron Trading Co 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.

Jewett-Cameron Trading Co's Free Cash Flow for the fiscal year that ended in Aug. 2023 is calculated as

Free Cash Flow (A: Aug. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	5.596	+	-0.326
	=	5.27

Jewett-Cameron Trading Co's Free Cash Flow for the quarter that ended in Feb. 2024 is calculated as

Free Cash Flow (Q: Feb. 2024 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-2.412	+	0
	=	-2.41

Free Cash Flow for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.21 Mil.

Jewett-Cameron Trading Co (NAS:JCTCF) 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 Feb24, Jewett-Cameron Trading Co's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Feb24)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0.00152381	/	5.2736	+	-0.1603
	=	-16.00 %

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.

Jewett-Cameron Trading Co Free Cash Flow Related Terms

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Jewett-Cameron Trading Co (Jewett-Cameron Trading Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Jewett-Cameron Trading Co Ltd (NAS:JCTCF) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

N/A

Address

32275 North West Hillcrest, P.O. Box 1010, North Plains, OR, USA, 97133

Website

https://www.jewettcameron.com

Jewett-Cameron Trading Co Ltd through its subsidiaries engages in the wholesale distribution of a variety of specialty wood products. Its operating segments include, The Industrial wood products segment is engaged in the processing and distribution of industrial wood products. The Pet Fencing and Other segment, which is the key revenue driver, operates as a wholesaler of wood products and a manufacturer and distributor of specialty metal products. The Seed processing and sales segment processes and distributes agricultural seed and Corporate and administrative. The company predominantly operates in United States and also has its presence in Canada, Latin America, Europe and Asia and other regions.

Executives

Chad Michael Summers	director, officer: Chief Executive Officer	2615 COEUR D'ALENE DR, WEST LINN OR 97065
Van Domelen Mitchell David	officer: CFO and Corporate Secretary	17492 NW COUNTRY DRIVE, PORTLAND OR 97223
Michael Charles Nasser	10 percent owner, officer: Corporate Secretary	3150 S.W. 72ND, PORTLAND OR 97225
Oregon Community Foundation	10 percent owner	1221 SW YAMHILL #100, PORTLAND OR 97205
Donald Boone Irrev Trust	10 percent owner	C/O RIVERVIEW TRUST COMPANY, 900 WASHINGTON ST, SUITE 900, VANCOUVER WA 98660
Donald M Boone	director, 10 percent owner, officer: President/CEO/Treasurer	PO BOX 1010, N PLAINS OR 97133
Chris Joseph Karlin	director	1822 PROSPECT AVE, HOOD RIVER OR 97031
Sarah Kathleen Johnson	director	810 NE 22ND AVE, PORTLAND OR 97232
Geoffrey Gaddy Guilfoy	director	1260 NW NAITO PARKWAY #704, PORTLAND OR 97209
Charles E. Hopewell	director, officer: President and CEO	P.O. BOX 1010, NORTH PLAINS OR 97133
Frank Gerald Magdlen	director	13620 SE MAPLE LANE, MILWAUKIE OR 97222
Ted A Sharp	director	428 CRYSTAL SPRINGS LN, KEIZER OR 97303
Ralph Elton Lodewick	director	5945 NW SEWELL RD, HILLSBORO OR 97124
Murray George Smith	officer: Chief Financial Officer	11920 SOUTHERN HIGHLANDS PARKWAY,, SUITE 200, LAS VEGAS NV 89141
Thomas Robert Rice	officer: Chief Financial Officer	P.O. BOX 1010, NORTH PLAINS OR 97133