🧮 ADAG Free Cash Flow Calculation
What is Free Cash Flow?
Free Cash Flow (FCF) is the cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base. It represents the actual cash available to pay dividends, buy back shares, reduce debt, or invest in growth. Unlike earnings, FCF is difficult to manipulate and provides a clear picture of financial health.
Why Free Cash Flow Matters for Investors
Cash is King
Earnings can be manipulated through accounting choices, but cash flow is real. A company with strong FCF has actual money to reward shareholders or grow the business.
Dividend Sustainability
Dividends must be paid in cash, not accounting profits. FCF shows whether a company can sustain and grow its dividend payments over time.
Debt Repayment Ability
FCF reveals a company's capacity to pay down debt. High FCF relative to debt obligations indicates financial flexibility and lower default risk.
FCF Yield Valuation
FCF Yield (FCF/Market Cap) shows the cash return on investment. Higher yields often indicate undervaluation. Compare to bond yields for perspective.
How Zyberno Calculates Growth Rate
Zyberno uses log-linear regression on 0 quarters of historical Free Cash Flow data to calculate the growth rate. This statistical method provides a more reliable trend than simple year-over-year comparisons, which can be distorted by one-time events or seasonal variations. The trend line is visible in the chart above.
Free Cash Flow vs Other Metrics
Owner Earnings: N/A →
Buffett's metric uses maintenance CapEx only (min of CapEx and D&A). FCF is more conservative by subtracting all capital spending, including growth investments.
Net Income: $-17.6M
Accounting profit includes non-cash items like depreciation, stock compensation, and accruals. FCF shows actual cash movement regardless of accounting treatment.
Earnings Per Share (EPS): $0.00 →
Net income divided by diluted shares. The per-share equivalent of total earnings, useful for comparing companies of different sizes.
FCF Conversion Ratio
The FCF Conversion Ratio measures how efficiently a company converts its net income into free cash flow. ADAG's FCF Conversion is 89%. A ratio between 80-100% is healthy and typical for most businesses.
📊 Full ADAG Stock Report →
See ADAG's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.
💰 ADAG Owner Earnings →
Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.
📈 ADAG Earnings Per Share →
Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.
📊 ADAG Revenue →
Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.
💰 ADAG Net Income →
Analyze the bottom-line profit, P/E ratio, and net profit margin trends.
🔶 ADAG Operating Income →
Analyze EBIT, operating margin, and core business profitability before interest and taxes.
💜 ADAG Gross Profit →
Analyze gross margin, pricing power, and profitability before operating expenses.
Summary: ADAG Free Cash Flow
Adagene Inc. (ADAG) has negative Free Cash Flow of $-15.7M over the trailing twelve months — the business is currently investing more in capital expenditures than it generates from operations. FCF trend: N/A annually — growth data is not available. For complete financial analysis, view the full ADAG stock report on Zyberno.
Frequently Asked Questions
What is ADAG's current Free Cash Flow?
Adagene Inc. (ADAG) has negative Free Cash Flow of $-15.7M over the trailing twelve months — the business is currently investing more in capital expenditures than it generates from operations. FCF trend: N/A annually — growth data is not available.
Is ADAG's Free Cash Flow growing?
Adagene Inc. (ADAG) has negative Free Cash Flow of $-15.7M over the trailing twelve months — the business is currently investing more in capital expenditures than it generates from operations. FCF trend: N/A annually — growth data is not available.
What is a good FCF Yield?
Zyberno considers FCF yields above 8% highly attractive, above 5% attractive, and above 3% moderate. At current prices, ADAG has a negative FCF yield of -999.00% — the business is currently cash-consumptive at this level.
How does Free Cash Flow differ from Owner Earnings?
Free Cash Flow subtracts all capital expenditures from operating cash flow, while Owner Earnings only subtracts maintenance CapEx — the minimum required to maintain the business's competitive position. For ADAG, FCF is $-15.7M compared to Owner Earnings of N/A — the difference reflects growth investment above maintenance requirements.