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 analysis of cash flow metrics between 2015 and 2019 reveals significant volatility in both operating cash flows and free cash flow to equity (FCFE). While operating activities provided a positive cash inflow throughout the period, the magnitude of these inflows decreased sharply toward the end of the timeframe, coinciding with a transition of FCFE into negative territory.
- Cash Provided by Operating Activities
- Operating cash flows exhibited a fluctuating trend, peaking in 2017 at 8,695 million US$. Following this peak, a steep decline occurred over the subsequent two years, with 2019 recording the lowest value of 1,409 million US$. This indicates a substantial reduction in the capacity to generate cash from core business operations toward the end of the observed period.
- Free Cash Flow to Equity (FCFE) Trends
- FCFE demonstrated extreme variance over the five-year period. After a sharp decline in 2016 to 972 million US$, FCFE recovered and rose to a peak of 6,868 million US$ in 2018. However, this was followed by a severe reversal in 2019, where FCFE fell to -1,352 million US$, signifying that cash outflows for capital expenditures and debt obligations exceeded the sum of operating cash flow and new debt issuance.
- Comparative Analysis of Operating Cash and FCFE
- A notable divergence is observed in 2018, where FCFE exceeded cash provided by operating activities by 2,137 million US$. This pattern typically suggests significant net borrowing or a substantial reduction in capital expenditures during that fiscal year. Conversely, the 2019 data shows a critical contraction, where the precipitous drop in operating cash flow combined with other outflows resulted in a net cash deficit for equity holders.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
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$) | |
| Free cash flow to equity (FCFE) (in millions) | (1,352) |
| FCFE per share | -1.83 |
| Current share price (P) | 53.10 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Linde plc | 27.80 |
| Sherwin-Williams Co. | 21.31 |
Based on: 10-K (reporting date: 2019-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
DuPont de Nemours Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 739,388,462 | 751,587,353 | 776,341,159 | 404,437,193 | 372,370,816 | |
| Selected Financial Data (US$) | ||||||
| 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.
The financial trajectory from 2015 to 2019 is marked by extreme volatility in cash flow generation and significant fluctuations in market valuation multiples. A pattern of inconsistent free cash flow to equity (FCFE) per share has directly influenced the P/FCFE ratio, resulting in wide swings in the relationship between market price and equity cash flows.
- Share Price Trends
- An upward trend is observed from 2015 to 2017, with the price increasing from 46.01 to a peak of 71.85. This growth was followed by a sharp correction in 2018, after which the price stabilized at 53.10 by the end of 2019.
- FCFE per Share Performance
- FCFE per share demonstrated high instability, dropping precipitously from 10.62 in 2015 to 2.40 in 2016. Although a substantial recovery occurred, peaking at 9.14 in 2018, the metric collapsed into negative territory in 2019, reaching -1.83.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio experienced a dramatic expansion from 4.33 in 2015 to 25.07 in 2016, indicating a period where the share price rose while cash flow generation diminished. The ratio contracted significantly to 5.69 in 2018 as FCFE recovered. In 2019, the ratio is not applicable as the negative FCFE renders the multiple mathematically non-meaningful for valuation purposes.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?