What does free cash flow margin mean?

How much real, spendable cash each sales dollar generates after reinvestment.

How do you interpret free cash flow margin?

A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.

How does free cash flow margin compare across companies?

Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.

Evergy EVRG Free cash flow margin

Discontinued — last reported Q3 '18

Free cash flow margin at other companies

AmerenAEE

-18.1%-3.0pp

OGE EnergyOGE

-3.1%-11.7pp

CMS

CMS EnergyCMS

12.8%-8.1pp

EntergyETR

-20.9%+3,135pp

PG&EPCG

-16.3%—

CNP

CenterPoint EnergyCNP

-28.4%-1.6pp

Other financials

Income statement

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Revenue$1.4B+5.0%

Operating income$318.4M+9.2%

Net income$151.5M+21.2%

EPS (diluted)$0.64+18.5%

Balance sheet

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Cash & equivalents$18.4M-47.9%

Total debt$13.5B+3.5%

Total equity$10.2B+2.3%

Total assets$34.5B+6.2%

Cash flow

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Operating cash flow$362.5M-19.4%

CapEx$851.9M+43.7%

Free cash flow-$489.4M-242%

Valuation

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Market cap$19.02B+19.0%

Enterprise value$32.51B+12.0%

P/E21.6×+3.3×

P/S3.2×+0.4×

Profitability

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Operating margin25.9%+0.4pp

Net margin14.6%-0.2pp

Returns & leverage

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Return on equity8.8%-0.2pp

Debt / equity1.3×0.0×

Current ratio0.4×-0.1×

Where this comes from

Calculated from Evergy’s reported figures.

free cash flow/total revenue=14.4%

Based on trailing twelve months.

The official record: Evergy’s 10-Q, filed November 7, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does free cash flow margin mean?: How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?: A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?: Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.