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.

Voya Financial VOYA Free cash flow margin

Discontinued — last reported Q3 '17

Free cash flow margin at other companies

UnumUNM

11.2%+1.4pp

BlackrockBLK

14.3%-4.6pp

Willis Towers WatsonWTW

15.8%+3.4pp

T Rowe Price GroupTROW

24%—

InvescoIVZ

26.5%+8.7pp

Raymond James FinancialRJF

16.2%+1.7pp

Other financials

Income statement

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Revenue$2.0B+3.1%

Net income$182.0M+16.7%

EPS (diluted)$1.75+23.2%

Balance sheet

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Cash & equivalents$1.1B+7.9%

Total debt$2.5B+18.8%

Total equity$4.7B+6.3%

Total assets$173.43B+5.8%

Cash flow

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Operating cash flow-$36.0M+79.9%

Valuation

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Market cap$8.18B-2.1%

Enterprise value$9.59B+2.4%

P/E12×-2.6×

P/S1×-0.1×

Profitability

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Net margin8.2%+1.1pp

Returns & leverage

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Return on equity15%+1.6pp

Debt / equity0.5×+0.1×

Where this comes from

Calculated from Voya Financial’s reported figures.

free cash flow/total revenue=26.1%

Based on trailing twelve months.

The official record: Voya Financial’s 10-Q, filed November 1, 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.