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HOMB (Home BancShares) Free Cash Flow : $386 Mil (TTM As of Mar. 2025)


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What is Home BancShares Free Cash Flow?

Home BancShares's total free cash flow for the months ended in Mar. 2025 was $110 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Mar. 2025 was $386 Mil.

Home BancShares's Free Cash Flow per Share for the months ended in Mar. 2025 was $0.55. Its free cash flow per share for the trailing twelve months (TTM) ended in Mar. 2025 was $1.94.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Home BancShares was 1.00% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -2.80% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 6.20% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 4.60% 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, Home BancShares's highest 3-Year average Free Cash Flow per Share Growth Rate was 102.90% per year. The lowest was -21.60% per year. And the median was 13.30% per year.


Home BancShares Free Cash Flow Historical Data

The historical data trend for Home BancShares'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.

Home BancShares Free Cash Flow Chart

Home BancShares 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 280.18 379.10 393.59 357.21 422.12

Home BancShares Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 145.86 99.16 116.24 60.85 110.13

Home BancShares 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.

Home BancShares'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
=460.646+-38.531
=422

Home BancShares's Free Cash Flow for the quarter that ended in Mar. 2025 is calculated as

Free Cash Flow (Q: Mar. 2025 )=Cash Flow from Operations+Capital Expenditure
=117.014+-6.884
=110

Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $386 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.


Home BancShares  (NYSE:HOMB) 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 five years. The reason we use five years is because research shows that five years is the length of the typical business cycle.

Therefore, as of Mar25, Home BancShares's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Mar25)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/28.27+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.


Home BancShares Free Cash Flow Related Terms

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


Home BancShares Business Description

Traded in Other Exchanges
N/A
Address
719 Harkrider, Suite 100, Conway, AR, USA, 72032
Home BancShares Inc is a bank holding company that operates through its wholly owned community bank subsidiary, Centennial Bank. The bank provides a broad range of commercial and retail banking, as well as related financial services, to a diverse customer base. Its customer base includes businesses, real estate developers and investors, individuals, and municipalities. The company's loan portfolio, while diversified, is typically between half and two thirds in commercial real estate loans. The company's plan emphasizes growth, both through strategic acquisitions and organically within its existing markets. The bank also emphasizes attracting experienced bankers, credit quality and a solid balance sheet. The bank's main source of net revenue is net interest income.
Executives
Kevin Hester officer: Chief Lending Officer P.O. BOX 966, CONWAY AR 72033
Jennifer C. Floyd officer: Chief Accounting Officer P.O. BOX 966, CONWAY AR 72033
John W Allison director, officer: Chairman
Alex R Lieblong director 210 E. ELM STREET, P. O. BOX 7200, EL DORADO AR 71730
James Pat Hickman director P.O. BOX 966, CONWAY AR 72033
Jack Engelkes director P O BOX 1167, CONWAY AR 72032
Brian Davis director, officer: Chief Financial Officer 6 GATEWOOD CV, LITTLE ROCK AR 72206
Tracy French director, officer: Centennial Bank CEO/ President 78 GREYSTONE BLVD, CABOT AR 72023
Donna Townsell officer: Sen. EVP of Corp. Eff. P.O. BOX 966, CONWAY AR 72033
Adcock Robert H Jr director P O BOX 966, CONWAY AR 72033
Carter Russell Davis Iii officer: Executive Vice President 15 GETTYSBURG SOUTH, CABOT AR 72023
Williamson Kenneth Mikel Jr officer: Centennial Bank Regional Pres. P.O. BOX 966, CONWAY AR 72033
Larry W Ross director P.O. BOX 966, CONWAY AR 72033
Richard H Ashley director 2851 LAKEWOOD VILLAGE DR., NORTH LITTLE ROCK AR 72116
Jim Rankin director P.O. BOX 966, CONWAY AR 72033