Marine Products (Marine Products) Free Cash Flow

: $46.7 Mil (TTM As of Dec. 2023)

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Marine Products's total free cash flow for the months ended in Dec. 2023 was $14.9 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2023 was $46.7 Mil.

Marine Products's Free Cash Flow per Share for the months ended in Dec. 2023 was $0.44. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2023 was $1.38.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Marine Products was -0.90% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 18.40% 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, Marine Products's highest 3-Year average Free Cash Flow per Share Growth Rate was 75.30% per year. The lowest was -41.00% per year. And the median was 11.60% per year.

Marine Products Free Cash Flow Historical Data

The historical data trend for Marine Products'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.

Marine Products Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Free Cash Flow

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31.58

27.78

-0.79

46.85

46.67

Marine Products 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	Get a 7-Day Free Trial															21.09	25.16	8.43	-1.82	14.90

Marine Products 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.

Marine Products'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
	=	56.846	+	-10.174
	=	46.7

Marine Products'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
	=	16.668	+	-1.769
	=	14.9

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 $46.7 Mil.

Marine Products (NYSE:MPX) 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, Marine Products's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec23)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0.88628571	/	11.4	+	0.1317
	=	20.94 %

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.

Marine Products Free Cash Flow Related Terms

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

Marine Products (Marine Products) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Marine Products Corp (NYSE:MPX) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

MPX:Mexico

Address

2801 Buford Highway NE, Suite 300, Atlanta, GA, USA, 30329

Website

https://www.marineproductscorp.com

Marine Products Corp is a manufacturer of fiberglass motorized boats distributed and marketed through its independent dealer network. It operates in the Powerboat Manufacturing business segment through Nashville, Georgia, Valdosta, and Georgia. Its product offerings include Chaparral sterndrive, outboard, and jet pleasure boats and Robalo outboard sport fishing boats. The company offers its products to the family recreational and cruiser markets through its Chaparral brand and to the sportfishing market through its Robalo brand.

Executives

Gary W. Rollins Voting Trust U/a Dated September 14, 1994	10 percent owner	C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY, NE, ATLANTA GA 30329
Amy Rollins Kreisler	director	2801 BUFORD HIGHWAY, NE, SUITE 520, ATLANTA GA 30329
Lor Inc	10 percent owner	C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Michael Schmit	officer: CFO and Corporate Secretary	3055 TORRINGTON DRIVE, BALL GROUND GA 30107
John F Wilson	director	2170 PIEDMONT ROAD, NE, ATLANTA GA 30324
Ben M Palmer	officer: VP, CFO and Treasurer	C/O MARINE PRODUCTS CORP, 2170 PIEDMONT RD, NE, ATLANTA GA 30324
Susan R. Bell	director	852 CASTLE FALLS DR., ATLANTA GA 30329
Patrick J. Gunning	director	1958 CALDER COURT, DUNWOODY GA 30338
Harry J Cynkus	director	2170 PIEDMONT RD, ATLANTA GA 30324
Jerry W Nix	director	2999 WILDWOOD PARKWAY, ATLANTA GA 30339
2007 Gwr Grandchildren's Partnership	10 percent owner	C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Rollins Holding Company, Inc.	10 percent owner	C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
1997 Rrr Grandchildren's Partnership	10 percent owner	C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Rft Investment Company, Llc	10 percent owner	C/O RFA MANAGEMENT COMPANY, LLC, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329
Rctlor, Llc	10 percent owner	C/O RFA MANAGEMENT COMPANY, 1908 CLIFF VALLEY WAY NE, ATLANTA GA 30329