Strongbridge Biopharma (Strongbridge Biopharma) Free Cash Flow : $-33.99 Mil (TTM As of Jun. 2021)

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What is Strongbridge Biopharma Free Cash Flow?

Strongbridge Biopharma's total free cash flow for the months ended in Jun. 2021 was $-9.83 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Jun. 2021 was $-33.99 Mil.

Strongbridge Biopharma's Free Cash Flow per Share for the months ended in Jun. 2021 was $-0.15. Its free cash flow per share for the trailing twelve months (TTM) ended in Jun. 2021 was $-0.52.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was 19.10% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 19.50% 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, Strongbridge Biopharma's highest 3-Year average Free Cash Flow per Share Growth Rate was 19.10% per year. The lowest was -36.30% per year. And the median was 8.80% per year.

Strongbridge Biopharma Free Cash Flow Historical Data

The historical data trend for Strongbridge Biopharma'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.

Strongbridge Biopharma Free Cash Flow Chart

Strongbridge Biopharma Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Free Cash Flow

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-31.71

-45.34

-84.90

-44.86

-38.14

Strongbridge Biopharma Quarterly Data
	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21
Free Cash Flow	Get a 7-Day Free Trial															-12.14	-5.76	-5.00	-13.40	-9.83

Strongbridge Biopharma 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.

Strongbridge Biopharma'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
	=	-38.134	+	-0.01
	=	-38.14

Strongbridge Biopharma's Free Cash Flow for the quarter that ended in Jun. 2021 is calculated as

Free Cash Flow (Q: Jun. 2021 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-9.827	+	0
	=	-9.83

Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $-33.99 Mil.

Strongbridge Biopharma (NAS:SBBP) 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 Jun21, Strongbridge Biopharma's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jun21)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0	/	2.97	+	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.

Strongbridge Biopharma Free Cash Flow Related Terms

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

Strongbridge Biopharma (Strongbridge Biopharma) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Strongbridge Biopharma PLC (NAS:SBBP) » Definitions » Free Cash Flow

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Traded in Other Exchanges

N/A

Address

900 Northbrook Drive, Suite 200, Trevose, PA, USA, 19053

Website

http://www.strongbridgebio.com

Strongbridge Biopharma PLC is a biopharmaceutical company which focuses on the development, in-licensing, acquisition, and commercialization of various complementary products and product candidates that target rare diseases. The product portfolio of the group includes COR-003(levoketoconazole) and COR-005 (veldoreotide). COR-003 is a cortisol inhibitor which is used for the treatment of endogenous cushing's syndrome and COR-005 a novel somatostatin analog, which is used for the treatment of acromegaly. In addition, it is also developing BP-2002 (gene modified probiotic) which will be used for the treatment of Diabetes. Geographically, business activity of the firm is primarily functioned through the United States.

Executives

David N Gill	director	C/O NXSTAGE MEDICAL INC. (NXTM), 439 SOUTH UNION STREET, 5TH FLOOR, LAWRENCE MA 01843
Cdk Associates, L.l.c.	10 percent owner	C/O CAXTON CORPORATION, 731 ALEXANDER ROAD, BUILDING #2, PRINCETON NJ 08540
Bruce Kovner	10 percent owner	C/O CAXTON ASSOCIATES, 500 PARK AVENUE, NEW YORK NY 10022
Caxton Corp	10 percent owner	731 ALEXANDER ROAD, BUILDING 2, SUITE 500, PRINCETON NJ 08540
John Johnson	director, officer: Chief Executive Officer	DENDREON CORPORATION, 1301 2ND AVENUE, SEATTLE WA 98101
Garheng Kong	director	712 COLLEGE AVENUE, MENLO PARK CA 94025
Jeffrey W Sherman	director	C/O IDM PHARMA, INC., 9 PARKER, SUITE 100, IRVINE CA 92618
Marten Steen	director	60 LEVERONI COURT, NOVATO CA 94949
Hilde H Steineger	director	900 NORTHBROOK DRIVE, SUITE 200, TREVOSE PA 19053
Stephen J Long	officer: Chief Legal Officer	C R BARD INC 730 CENTRAL AVENUE MURRAY HILL NJ 07974
Fredric J. Cohen	officer: Chief Medical Officer	900 NORTHBROOK DRIVE SUITE 200 TREVOSE PA 19053
Scott L. Wilhoit	officer: Chief Commercial Officer	900 NORTHBROOK DRIVE SUITE 200 TREVOSE PA 19053
Robert Matthew Lutz	officer: Chief Financial Officer	900 NORTHBROOK DRIVE, SUITE 200, TREVOSE PA 19053
Richard S Kollender	officer: Chief Operating Officer	C/O QUAKER BIOVENTURES, CIRA CENTRE, 2929 ARCH STREET, 3RD FLOOR, PHILADELPHIA PA 19104-2868
A Brian Davis	officer: Chief Financial Officer	C/O VERRICA PHARMACEUTICALS INC., 10 NORTH HIGH STREET, SUITE 200, WEST CHESTER PA 19380