Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Anadarko Petroleum Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Operating Activities Cash Flow
- The net cash provided by operating activities showed a generally positive trend from 2012 through 2014, increasing from 8,339 million USD in 2012 to a peak of 8,888 million USD in 2013, before slightly declining to 8,466 million USD in 2014. However, a significant negative shift occurred in 2015, with net cash falling to -1,877 million USD, indicating cash outflows in operating activities. In 2016, there was a recovery with net cash rising to 3,000 million USD, although it remained substantially lower than the levels observed between 2012 and 2014.
- Free Cash Flow to Equity (FCFE)
- The FCFE exhibited considerable volatility over the five-year period. It started negative at -974 million USD in 2012 but improved sharply to a positive 1,402 million USD in 2013. Following this, FCFE decreased to 474 million USD in 2014, before experiencing a substantial downturn in 2015 to a negative 7,368 million USD, which represents a significant outflow impacting equity holders. In 2016, although FCFE improved compared to 2015, it remained negative at -1,398 million USD, indicating ongoing challenges in generating free cash flow available to equity investors.
- Overall Trends and Insights
- Both net cash from operating activities and FCFE demonstrated relative strength during the early years (2012-2014) with positive or improving cash flows. A pronounced decline occurred in 2015, leading to negative operating cash flows and sharply negative FCFE, signaling strained operational liquidity and diminished capacity to generate cash available for equity holders. The partial recovery in 2016 hints at improving operational cash generation but does not fully restore free cash flow to equity to positive territory. The data underlines a period of financial stress in 2015 with lingering effects into 2016, possibly reflecting external challenges or internal operational issues.
Price to FCFE Ratio, Current
Anadarko Petroleum Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 547,157,557 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | (1,398) |
| FCFE per share | -2.56 |
| Current share price (P) | 49.37 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 16.94 |
| ConocoPhillips | 13.93 |
| Exxon Mobil Corp. | 19.86 |
Based on: 10-K (reporting date: 2016-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Anadarko Petroleum Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 558,979,551 | 508,438,647 | 506,650,285 | 503,767,298 | 500,565,966 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | (1,398) | (7,368) | 474) | 1,402) | (974) | |
| FCFE per share3 | -2.50 | -14.49 | 0.94 | 2.78 | -1.95 | |
| Share price1, 4 | 66.77 | 40.50 | 85.45 | 84.16 | 84.13 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | — | 91.34 | 30.24 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 Data adjusted for splits and stock dividends.
3 2016 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -1,398,000,000 ÷ 558,979,551 = -2.50
4 Closing price as at the filing date of Anadarko Petroleum Corp. Annual Report.
5 2016 Calculation
P/FCFE = Share price ÷ FCFE per share
= 66.77 ÷ -2.50 = —
6 Click competitor name to see calculations.
- Share Price
- The share price remained relatively stable from 2012 through 2014, fluctuating slightly around the mid-80 US dollar range. However, in 2015, there was a significant decline to 40.5 US dollars, representing a drop of more than 50% from the previous year. In 2016, the share price partially recovered, increasing to 66.77 US dollars, yet it remained considerably lower than the levels observed from 2012 to 2014.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed notable volatility over the five-year period. In 2012, the FCFE per share was negative at -1.95 US dollars, which improved substantially in 2013 to 2.78 US dollars, indicating positive cash flow available to shareholders. In 2014, FCFE per share decreased to 0.94 US dollars but remained positive. The following two years witnessed a sharp decline with FCFE per share registering significant negative values of -14.49 US dollars in 2015 and -2.5 US dollars in 2016, signaling considerable cash flow challenges and potential liquidity strain.
- Price to FCFE (P/FCFE) Ratio
- The Price to FCFE ratio was absent in 2012 and showed a significant increase in 2013 to 30.24, followed by a sharp rise to 91.34 in 2014. The absence of data for 2012, 2015, and 2016 corresponds with the presence of negative or zero FCFE values in those years, making the ratio undefined or not meaningful in those periods. The elevated ratio in 2014 suggests that the share price was high relative to the free cash flow per share, possibly indicating overvaluation or investor expectations of future growth despite declining FCFE per share.
- Overall Trends and Insights
- Over the analyzed period, there is a clear trend of increased financial strain as evidenced by declining and negative FCFE per share values in the latter years. This cash flow deterioration coincides with a significant drop in share price in 2015, reflecting investor concerns or market adjustments to weakening fundamentals. The partial recovery in share price in 2016 did not correspond with an improvement in FCFE per share. Elevated and volatile Price to FCFE ratios in the mid-period highlight potential market optimism during times of weakening cash flows, which was later corrected by falling share prices. Overall, the data suggests a period of financial stress affecting free cash flow generation and investor valuation between 2014 and 2016.