For FCF, I use Cash from Operations (essentially Net Income with Depreciation and Amortization added back in) less Capex.
For FY 2009, Net Income for EME was $161, according to both MStar and MSN. Cash from Operations from both sources comes in at $359 and Capex is $24M, resulting in FCF @$335M. I believe that both sources do include changes in working capital (MSN breaks it out, MStar doesn't).
Receivables did shrink (which is usually a good thing), as did Accounts payable, but you're right, it is due mostly to a declining revenue base, which comes as no surprise. EME is, after all, in a cyclical business and revenues peaked in 2008.
Anyway, @ roughly $23/shr, using @68M shares (ttm) and FCF (ttm) of $249 (lower than FY 2009), I get a FCF Yield of 15.9%.
249/(68 x 23) = 249/1564 = 0.159
If I'm wrong, I'm certainly anxious to know how, especially if I'm way off with this calculation. I'm self-taught in accounting; read several books, but never took a course. Might be time.
A FCF yield of 15% is normally in my buying range, but, with a rather cyclical stock, I sure would like some sign that the economy isn't going to swoon again. |
