Chiasma (Chiasma) Free Cash Flow : $-83.47 Mil (TTM As of Mar. 2021)

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What is Chiasma Free Cash Flow?

Chiasma's total free cash flow for the months ended in Mar. 2021 was $-20.65 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Mar. 2021 was $-83.47 Mil.

Chiasma's Free Cash Flow per Share for the months ended in Mar. 2021 was $-0.33. Its free cash flow per share for the trailing twelve months (TTM) ended in Mar. 2021 was $-1.47.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was -13.00% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 15.80% 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 8 years, Chiasma's highest 3-Year average Free Cash Flow per Share Growth Rate was 31.00% per year. The lowest was -29.90% per year. And the median was 5.00% per year.

Chiasma Free Cash Flow Historical Data

The historical data trend for Chiasma'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.

Chiasma Free Cash Flow Chart

Chiasma Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Free Cash Flow

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-54.93

-24.45

-24.10

-35.32

-75.70

Chiasma Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
Free Cash Flow	Get a 7-Day Free Trial															-12.87	-16.44	-25.36	-21.03	-20.65

Chiasma 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.

Chiasma'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
	=	-75.326	+	-0.372
	=	-75.70

Chiasma's Free Cash Flow for the quarter that ended in Mar. 2021 is calculated as

Free Cash Flow (Q: Mar. 2021 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-20.644	+	-0.004
	=	-20.65

Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $-83.47 Mil.

Chiasma (NAS:CHMA) 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 Mar21, Chiasma's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Mar21)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0	/	3.13	+	0
	=	0.00 %

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.

Chiasma Free Cash Flow Related Terms

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

Chiasma (Chiasma) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Chiasma Inc (NAS:CHMA) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

N/A

Address

140 Kendrick Street, Building C East, Needham, MA, USA, 02494

Website

https://www.chiasmapharma.com

Chiasma Inc is a commercial-stage biopharmaceutical company focused on improving the lives of patients who face challenges associated with existing treatments for rare and serious chronic disease. The US Food and Drug Administration, or the FDA, approved MYCAPSSA for long-term maintenance treatment in acromegaly patients who have responded to and tolerated treatment with octreotide or lanreotide. MYCAPSSA is the first and only oral somatostatin analog, or SSA, approved by the FDA and the first product approved by the FDA utilizing TPE technology. The company is focused on the commercialization of MYCAPSSA for the treatment of patients with acromegaly in the United States and developing and seeking regulatory approval of MYCAPSSA in the European Union.

Executives

Roni Mamluk	director	CHIASMA, INC., 60WELLS AVENUE, NEWTON MA 02459
David M Stack	director	THE MEDICINES CO, 8 CAMPUS DRIVE, PARSIPPANY NJ 07054
Raj Kannan	director, officer: Chief Executive Officer	C/O CHIASMA, INC. 460 TOTTEN POND RD, SUITE 530, WALTHAM MA 02451
John F Thero	director	C/O AMARIN PHARMA, INC., 1430 ROUTE 6, BEDMINSTER NJ 07921
Bard Geesaman	director	C/O MPM CAPITAL 450 KENDALL STREET CAMBRIDGE MA 02142
Todd Foley	director	THE JOHN HANCOCK TOWER, 200 CLARENDON STREET 54TH FLOOR, BOSTON MA 02116
John A Scarlett	director	C/O GERON CORPORATION, 230 CONSTITUTION DRIVE, MENLO PARK CA 94025
Scott Minick	director	C/O BIND THERAPEUTICS, INC. 325 VASSAR ST CAMBRIDGE MA 02139
Anand Varadan	officer: EVP, Chief Commerical Officer	C/O CHIASMA, INC., 60 WELLS AVENUE, NEWTON MA 02459
Lee Giguere	officer: General Counsel	C/O CHIASMA, INC. 460 TOTTEN POND ROAD, SUITE 530 WALTHAM MA 02451
William Ludlam	officer: See Remarks	C/O CHIASMA, INC. 460 TOTTEN POND ROAD, SUITE 530 WALTHAM MA 02451
Drew Enamait	officer: VP, Fin & Admin, PAO	C/O CHIASMA, INC. 275 WYMAN STREET, SUITE 250 WALTHAM MA 02451
Mark J. Fitzpatrick	officer: President	101 MAIN STREET, SUITE 1850, CAMBRIDGE MA 02142
James R Tobin	director	C/O CURIS INC, 4 MAGUIRE ROAD, LEXINGTON MA 02421
Ansbert Gadicke	director	THE JOHN HANCOCK TOWER, 200 CLARENDON STREET, 54TH FLOOR, BOSTON MA 02116