Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
DuPont de Nemours Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
The financial data reveals notable fluctuations in the cash provided by operating activities over the five-year period. Starting at a high level, the operating cash flow decreased substantially from 7,516 million US dollars in 2015 to 5,478 million in 2016. This was followed by a significant recovery in 2017, reaching 8,695 million, the highest point in the dataset. In 2018, there was a sharp decline to 4,731 million, and the downward trend continued into 2019, with the cash inflow dropping further to 1,409 million.
Regarding free cash flow to equity (FCFE), the values demonstrate more volatility. The FCFE began at 3,954 million in 2015 and saw a dramatic drop to 972 million in 2016. A partial rebound occurred in 2017, with FCFE increasing to 2,405 million, and this upward momentum accelerated significantly in 2018, reaching 6,868 million, the highest observed in the series. However, 2019 presented a stark contrast, with FCFE falling into negative territory at -1,352 million, indicating potential challenges in generating equity cash flow in that year.
The discrepancies between operating cash flow and free cash flow to equity trends indicate varied impacts of investment activities, financing, and possibly working capital changes on the cash flows available to equity holders. The high FCFE in 2018, despite lower operating cash flow compared to 2017, suggests positive effects from non-operating cash flow components during that year. Conversely, the sharp decline in FCFE in 2019, exceeding the decrease in operating cash flows, may point to increased capital expenditures, debt repayments, or other factors reducing cash available to equity.
Price to FCFE Ratio, Current
DuPont de Nemours Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 739,388,462 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | (1,352) |
| FCFE per share | -1.83 |
| Current share price (P) | 53.10 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Linde plc | 27.79 |
| Sherwin-Williams Co. | 41.83 |
Based on: 10-K (reporting date: 2019-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
DuPont de Nemours Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 739,388,462 | 751,587,353 | 776,341,159 | 404,437,193 | 372,370,816 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | (1,352) | 6,868) | 2,405) | 972) | 3,954) | |
| FCFE per share3 | -1.83 | 9.14 | 3.10 | 2.40 | 10.62 | |
| Share price1, 4 | 53.10 | 52.00 | 71.85 | 60.26 | 46.01 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | 5.69 | 23.19 | 25.07 | 4.33 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -1,352,000,000 ÷ 739,388,462 = -1.83
4 Closing price as at the filing date of DuPont de Nemours Inc. Annual Report.
5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 53.10 ÷ -1.83 = —
6 Click competitor name to see calculations.
- Share Price
- The share price exhibited an upward trend from 2015 to 2017, increasing from $46.01 to $71.85. However, a decline followed in 2018, bringing the price down to $52. In 2019, the share price showed a modest recovery, rising slightly to $53.10.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share demonstrated significant volatility across the five-year period. It started relatively strong at $10.62 in 2015, sharply decreased to $2.40 in 2016, and showed a mild improvement to $3.10 in 2017. A notable increase occurred in 2018, reaching $9.14, before plunging into negative territory at -$1.83 in 2019. This suggests fluctuating cash generation available to equity shareholders with potential concerns in the most recent year.
- Price to Free Cash Flow to Equity (P/FCFE) Ratio
- The P/FCFE ratio was highly elevated in 2016 and 2017 at 25.07 and 23.19 respectively, indicating the market valued the share price at a high multiple of free cash flows during these years, despite low FCFE per share figures. In 2015 and 2018, the ratio was considerably lower at 4.33 and 5.69 respectively, signaling a more balanced valuation relative to cash flows. Data for 2019 is missing, preventing analysis of valuation in the latest year.
- Overall Insights
- The data reveals considerable fluctuations in cash generation per share, which significantly influenced valuation multiples. A booming FCFE in 2015 and 2018 corresponded with lower P/FCFE ratios, suggesting attractive valuation points. In contrast, very low or negative FCFE levels in 2016, 2017, and 2019 coincided with higher multiples or no valuation metric available, indicating higher perceived risk or uncertainty by the market. Share price movements followed a general upward trend early in the period but experienced a noticeable decline in 2018 with a slight recovery in 2019, consistent with underlying cash flow volatility.