Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
3M Co., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The analysis of the financial data over the five-year period reveals notable trends in cash flow activities. The net cash provided by operating activities exhibited a generally upward trajectory from 2017 to 2020, increasing each year from 6240 million USD in 2017 to a peak of 8113 million USD in 2020. However, there was a decline in 2021, with the figure decreasing to 7454 million USD.
On the other hand, free cash flow to equity (FCFE) showed more variability. Starting at 6470 million USD in 2017, it decreased to 5795 million USD in 2018, then surged significantly to 8620 million USD in 2019. This was followed by a sharp decline in 2020, with FCFE dropping to 4737 million USD, and a slight further reduction to 4706 million USD in 2021.
- Net cash provided by operating activities
- Consistent growth was observed from 2017 through 2020, indicating improving operational efficiency and cash generation capability during these years.
- The dip in 2021 suggests potential challenges or increased operational costs, impacting cash inflows.
- Free cash flow to equity (FCFE)
- FCFE experienced significant fluctuations, peaking in 2019, which may reflect a period of strong capital management or reduced capital expenditures.
- The substantial drop in FCFE during 2020 and 2021 could indicate increased investments, higher debt repayments, or other financing activities reducing available cash for equity holders.
Overall, the data suggests that while operational cash generation was generally strong until 2020, the company faced some operational or financing challenges in the following year, substantially affecting free cash flow to equity. These trends warrant further investigation into the underlying factors influencing cash management and capital allocation strategies during the latter part of the period.
Price to FCFE Ratio, Current
3M Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 552,742,915 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 4,706) |
| FCFE per share | 8.51 |
| Current share price (P) | 118.50 |
| Valuation Ratio | |
| P/FCFE | 13.92 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | — |
| Caterpillar Inc. | 17.52 |
| Eaton Corp. plc | 37.71 |
| GE Aerospace | 65.99 |
| Honeywell International Inc. | 9.32 |
| Lockheed Martin Corp. | 13.28 |
| RTX Corp. | 95.20 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
3M Co., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 571,100,000 | 579,100,000 | 575,600,000 | 575,800,000 | 595,500,000 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 4,706) | 4,737) | 8,620) | 5,795) | 6,470) | |
| FCFE per share3 | 8.24 | 8.18 | 14.98 | 10.06 | 10.86 | |
| Share price1, 4 | 163.64 | 177.10 | 162.89 | 199.84 | 222.89 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 19.86 | 21.65 | 10.88 | 19.86 | 20.51 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | — | 6.78 | — | — | — | |
| Caterpillar Inc. | 16.36 | 25.22 | — | — | — | |
| Eaton Corp. plc | 24.43 | 25.59 | — | — | — | |
| GE Aerospace | — | — | — | — | — | |
| Honeywell International Inc. | 46.23 | 12.59 | — | — | — | |
| Lockheed Martin Corp. | 14.65 | 15.57 | — | — | — | |
| RTX Corp. | 35.07 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Capital Goods | — | 74.91 | — | — | — | |
| P/FCFE, Industry | ||||||
| Industrials | — | 40.69 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,706,000,000 ÷ 571,100,000 = 8.24
4 Closing price as at the filing date of 3M Co. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 163.64 ÷ 8.24 = 19.86
6 Click competitor name to see calculations.
The data reveals distinct trends over the five-year period ending December 31, 2021. The share price demonstrates a general decline with some fluctuations. It starts at $222.89 in 2017, decreases to $199.84 in 2018, further drops to $162.89 in 2019, then slightly recovers to $177.10 in 2020, and again declines to $163.64 in 2021. This suggests a downward trend in market valuation with intermittent periods of partial recovery.
Free Cash Flow to Equity (FCFE) per share exhibits variability within the same timeframe. Beginning at $10.86 in 2017, it slightly decreases to $10.06 in 2018, then notably increases to $14.98 in 2019. However, it sharply declines to $8.18 in 2020 and remains almost stable at $8.24 in 2021. This pattern indicates a peak in cash flow generation in 2019, followed by a substantial drop in subsequent years, which might reflect changes in operational efficiency or capital structure.
The Price to FCFE (P/FCFE) ratio reflects the relationship between share price and free cash flow per share. It starts relatively high at 20.51 in 2017, slightly decreases to 19.86 in 2018, then significantly drops to 10.88 in 2019. In 2020, the ratio surges to 21.65, the highest in the period, and decreases again to 19.86 in 2021. The sharp decline in 2019 aligns with the spike in FCFE per share, suggesting the market valued the company's cash flow more favorably during that year. The 2020 spike could indicate increased market expectations or share price movements disproportionate to FCFE changes.
- Share Price Trend
- Overall declining trend with minor recovery in 2020. The market valuation decreased significantly from 2017 to 2021.
- FCFE per Share Trend
- Fluctuating trend with a peak in 2019 followed by a sharp decline in 2020 and stabilizing in 2021, indicating inconsistent free cash flow generation.
- P/FCFE Ratio Trend
- Variable with significant movements: a drop in 2019 correlates with higher FCFE, and a peak in 2020 suggests possibly inflated market expectations or other external factors affecting valuation.
Overall, the data suggests that while the company’s fundamental cash flow experienced volatility, the market perception and valuation as reflected in share price and P/FCFE ratio exhibited sensitivity to these financial performances, resulting in notable fluctuations over the period analyzed.