Free cash flow
In the previous part of this series, we looked at estimates for Intrepid Potash’s (IPI) earnings for the upcoming 4Q16 earnings. Earnings also impact the company’s free cash flow. Investors and analysts keep a close eye on free cash flow growth, which is also used in discounted cash flow valuations.
Free cash flow estimates
For 4Q16, Wall Street analysts expect Intrepid Potash (IPI) to report flat free cash flow, which would be better than the company’s -$29 million in free cash flow in 4Q15.
For the next 12 months, analysts estimate that Intrepid Potash’s total free cash flow could be flat when compared with its free cash flow of -$58 million in the last four quarters.
The free cash flow for Intrepid Potash’s peer (SOIL) The Mosaic Company (MOS) is estimated to fall 48.0% to $163.0 million in the next 12 months. Agrium’s (AGU) free cash flow is expected to rise 23.0% to $579.0 million. For CF Industries (CF), which has had negative free cash flow over the last 12 months, free cash flow is estimated at $869.0 million over the next 12 months.
Be sure to watch for Market Realist’s analysis following IPI’s earnings release. In the meantime, you can get updates on the agricultural fertilizer industry at our Agricultural Fertilizers page.