Yahoo! Inc. (NASDAQ:YHOO)

Net Cash Provided by (Used in) Operating Activities

The net cash flow from operating activities exhibited substantial volatility over the period analyzed. Initially, there was a significant cash outflow of approximately $281.6 million in 2012, shifting to a strong inflow of roughly $1.2 billion in 2013. This positive trend continued into 2014 with a slightly reduced but still considerable inflow of approximately $896.7 million. However, 2015 saw a dramatic reversal, with net cash used in operations soaring to an outflow of about $2.38 billion, indicating operational difficulties or significant changes in working capital or operating conditions. In 2016, the company recovered, recording net cash inflows again reaching approximately $1.25 billion, suggesting a return to positive operational cash generation.

Free Cash Flow to Equity (FCFE)

Free cash flow to equity mirrored the volatility seen in operating cash flow but with even wider swings. In 2012, FCFE was negative, around $790.9 million, indicating cash outflows exceeded inflows available to equity holders. This reversed sharply in 2013, with FCFE jumping to about $2.35 billion, reflecting strong cash generation capacity after accounting for investments and financing activities. In 2014, FCFE decreased considerably to approximately $608.2 million, still positive but indicating reduced free cash flow compared to the previous year. Similar to operating cash flow, 2015 saw a large negative FCFE figure of roughly $2.9 billion, reflecting substantial cash demands beyond operational expenses, possibly related to investments or financing obligations. In 2016, FCFE rebounded again, achieving a positive cash flow of approximately $1.26 billion, indicating restored ability to generate cash available for equity investors.

The analysis of the financial data reveals several notable trends over the five-year period ending December 31, 2016.

Share price

The share price exhibited an overall increasing trend with some fluctuations. It started at $21.94 in 2012, rose significantly to $38.67 in 2013, and continued to increase to $44.28 in 2014. However, it declined to $31.79 in 2015 before rising again to $46.24 in 2016, reaching the highest value in the observed period.

Free Cash Flow to Equity (FCFE) per share

The FCFE per share showed significant volatility. It was negative at -$0.72 in 2012, turned positive in 2013 to $2.33, and decreased to $0.65 in 2014. In 2015, FCFE per share reverted to a negative figure of -$3.07, indicating a cash outflow to equity holders, before recovering partially to $1.32 in 2016. This pattern suggests inconsistent free cash flow generation over the years.

Price to FCFE (P/FCFE) ratio

The P/FCFE ratio, which relates share price to free cash flow on a per-share basis, shows wide fluctuations. It is not reported in 2012 and 2015 due to negative or undefined FCFE per share values those years. In 2013, the ratio was 16.63, rising sharply to 68.15 in 2014, indicating that the share price increased disproportionately relative to cash flow generation. In 2016, the ratio decreased to 35.13, reflecting a decrease in share price relative to FCFE or an improvement in free cash flow.

Overall, the data suggests that while the share price generally increased over the period, the underlying free cash flow per share was unstable and occasionally negative. The P/FCFE ratio's volatility reflects this inconsistency, showing periods where the market valuation may have outpaced the company's actual cash flow generation capacity. The fluctuations in FCFE per share and P/FCFE indicate varying levels of financial performance and cash flow generation discipline within this time frame.