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SFNC (Simmons First National) Free Cash Flow : $380.4 Mil (TTM As of Dec. 2024)


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What is Simmons First National Free Cash Flow?

Simmons First National's total free cash flow for the months ended in Dec. 2024 was $72.3 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2024 was $380.4 Mil.

Simmons First National's Free Cash Flow per Share for the months ended in Dec. 2024 was $0.57. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2024 was $3.02.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Simmons First National was -24.70% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 13.10% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 15.20% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 39.10% 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, Simmons First National's highest 3-Year average Free Cash Flow per Share Growth Rate was 386.30% per year. The lowest was -71.60% per year. And the median was 6.70% per year.


Simmons First National Free Cash Flow Historical Data

The historical data trend for Simmons First National'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.

Simmons First National Free Cash Flow Chart

Simmons First National Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Free Cash Flow
Get a 7-Day Free Trial Premium Member Only Premium Member Only 189.27 229.92 286.93 507.89 380.42

Simmons First National Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 414.01 47.75 72.67 187.71 72.29

Simmons First National 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.

Simmons First National's Free Cash Flow for the fiscal year that ended in Dec. 2024 is calculated as

Free Cash Flow (A: Dec. 2024 )=Cash Flow from Operations+Capital Expenditure
=425.924+-45.509
=380.4

Simmons First National's Free Cash Flow for the quarter that ended in Dec. 2024 is calculated as

Free Cash Flow (Q: Dec. 2024 )=Cash Flow from Operations+Capital Expenditure
=82.865+-10.574
=72.3

Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $380.4 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.


Simmons First National  (NAS:SFNC) 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 Dec24, Simmons First National's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec24)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/22.18+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.


Simmons First National Free Cash Flow Related Terms

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


Simmons First National Business Description

Traded in Other Exchanges
N/A
Address
501 Main Street, Pine Bluff, AR, USA, 71601
Simmons First National Corp is a financial holding company. The company through its subsidiaries is engaged in providing banking services including consumer, real estate and commercial loans, checking, savings and time deposits. The company's loan portfolio comprises construction, single-family residential and commercial loans; non-real estate loans, nonaccrual and past due loans; and credit card loans, student loans and other consumer loans. It also offers various products and services such as trust services, investments, agricultural finance lending, equipment lending, insurance, consumer finance and small business administration lending. The business activity of the firm is functioned through the region of the United States.
Executives
Robert A Fehlman officer: EVP & CFO
Eugene Hunt director P.O. BOX 9588, PINE BLUFF AR 71611
George Jr Makris director
David W Garner officer: Vice President & Controller SIMMONS FIRST NATIONAL CORP., 501 MAIN STREET, PINE BLUFF AR 71601
Stephen C Massanelli officer: EVP 501 MAIN STREET, PINE BLUFF AR 71601
Makris George A Iii officer: EVP, Gen. Counsel & Corp. Sec. 501 MAIN STREET, PINE BLUFF AR 71601
Robert L Shoptaw director 21 RIVER RIDGE CIRCLE, LITTLE ROCK AR 72227
Dean O. Bass director 1836 SPIRIT OF TEXAS WAY, CONROE TX 77301
James M Brogdon officer: EVP, CFO, Treasurer 501 MAIN STREET, PINE BLUFF AR 71601
Stewart Bradley Yaney officer: EVP, Chief Credit Risk Officer 501 MAIN STREET, PINE BLUFF AR 71601
Edward Drilling director 1 GREENBRIER, ROAD, LITTLE ROCK AR 72202
Marty Casteel officer: EVP 501 MAIN STREET, PINE BLUFF AR 71601
Chad Rawls officer: EVP & Chief Credit Officer 900 S. SHACKLEFORD ROAD, SUITE 605, LITTLE ROCK AR 72211
Ann Madea officer: EVP & CIO 501 MAIN STREET, PINE BLUFF AR 71601
Paul D Kanneman officer: EVP 501 MAIN STREET, PINE BLUFF AR 71601