Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Corning Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
A divergent trend is observed between net cash provided by operating activities and free cash flow to equity (FCFE) from 2019 through 2023. While operating cash flow experienced a period of growth followed by a contraction, FCFE showed a consistent recovery pattern following a significant decline in 2020.
- Operating Cash Flow Trends
- Net cash provided by operating activities exhibited a positive trajectory from 2019, increasing from 2,031 million US$ to a peak of 3,412 million US$ in 2021. This peak was followed by a two-year decline, with values receding to 2,005 million US$ by the end of 2023, effectively returning to baseline 2019 levels.
- Free Cash Flow to Equity (FCFE) Dynamics
- FCFE underwent a sharp contraction in 2020, falling from 1,584 million US$ in 2019 to 825 million US$. Following this trough, a steady upward trend was established, with FCFE increasing annually to reach 1,331 million US$ in 2023. This recovery occurred independently of the operating cash flow trend, as FCFE grew during the years that operating cash flow declined.
- Cash Flow Conversion Analysis
- The relationship between operating cash and FCFE indicates significant fluctuations in capital allocation or debt financing. In 2021, despite the peak in operating cash flow, FCFE remained relatively low at 937 million US$, representing a period of high capital intensity or debt repayment. By 2023, the gap between operating cash and FCFE narrowed significantly, suggesting a reduction in capital expenditures or a shift in financing activities that enhanced the cash available to equity holders.
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Price to FCFE Ratio, Current
Corning Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 856,619,222 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 1,331) |
| FCFE per share | 1.55 |
| Current share price (P) | 33.57 |
| Valuation Ratio | |
| P/FCFE | 21.61 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | 56.21 |
| Arista Networks Inc. | 51.12 |
| Cisco Systems Inc. | 29.61 |
| Dell Technologies Inc. | 19.30 |
| Lumentum Holdings Inc. | 414.60 |
| Super Micro Computer Inc. | — |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | 53.59 |
| P/FCFE, Industry | |
| Information Technology | 78.32 |
Based on: 10-K (reporting date: 2023-12-31).
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
Corning Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 853,474,317 | 846,563,422 | 845,849,498 | 768,367,889 | 763,628,266 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 1,331) | 1,051) | 937) | 825) | 1,584) | |
| FCFE per share3 | 1.56 | 1.24 | 1.11 | 1.07 | 2.07 | |
| Share price1, 4 | 32.18 | 35.67 | 41.29 | 36.88 | 27.97 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 20.63 | 28.73 | 37.27 | 34.35 | 13.48 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Apple Inc. | 30.63 | 22.26 | 23.27 | 24.40 | — | |
| Arista Networks Inc. | 41.51 | 96.72 | 42.05 | — | — | |
| Cisco Systems Inc. | 12.84 | 17.18 | 21.02 | — | — | |
| Dell Technologies Inc. | 9.06 | 33.54 | 14.15 | — | — | |
| Lumentum Holdings Inc. | 6.92 | 5.06 | 9.31 | — | — | |
| Super Micro Computer Inc. | 41.38 | 139.27 | 13.81 | — | — | |
| P/FCFE, Sector | ||||||
| Technology Hardware & Equipment | 27.33 | 22.05 | 22.76 | — | — | |
| P/FCFE, Industry | ||||||
| Information Technology | 33.12 | 26.68 | 27.39 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,331,000,000 ÷ 853,474,317 = 1.56
4 Closing price as at the filing date of Corning Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 32.18 ÷ 1.56 = 20.63
6 Click competitor name to see calculations.
The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals a period of significant valuation expansion followed by a gradual correction. Between 2019 and 2021, the P/FCFE ratio experienced a substantial increase, peaking in 2021, before trending downward through 2023.
- Share Price Trends
- The share price exhibited a growth phase from 2019 to 2021, rising from 27.97 US$ to a peak of 41.29 US$. Subsequent years showed a reversal of this trend, with the price declining to 32.18 US$ by the end of 2023.
- FCFE per Share Performance
- Free Cash Flow to Equity per share saw a sharp contraction in 2020, dropping from 2.07 US$ in 2019 to 1.07 US$. Following this decline, a consistent recovery trend was observed, with values increasing sequentially to 1.11 US$ in 2021, 1.24 US$ in 2022, and 1.56 US$ in 2023.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio escalated from 13.48 in 2019 to a peak of 37.27 in 2021. This expansion was primarily driven by the divergence between an increasing share price and a significantly reduced FCFE per share. From 2022 onward, the ratio contracted to 20.63 by the end of 2023, reflecting a convergence resulting from a decrease in market price and a steady recovery in the underlying free cash flow available to equity holders.
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