Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
EQT Corp., FCFE calculation
US$ in thousands
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 financial performance from 2017 to 2021 is characterized by relatively stable operating cash flows contrasted with significant volatility in free cash flow to equity (FCFE).
- Net Cash Provided by Operating Activities
- Operating cash flows exhibited a peak in 2018, reaching approximately 2.98 billion US$, followed by a decline to 1.85 billion US$ in 2019 and 1.54 billion US$ in 2020. By the end of 2021, a slight recovery was observed, with cash provided by operating activities rising to 1.66 billion US$.
- Free Cash Flow to Equity (FCFE) Trends
- FCFE demonstrated extreme fluctuations throughout the period. After starting at 1.55 billion US$ in 2017, a sharp contraction occurred, culminating in a low of 37.68 million US$ in 2019. A subsequent recovery phase began in 2020 and accelerated significantly in 2021, with FCFE increasing to 1.12 billion US$.
- Analysis of Cash Flow Divergence
- A notable divergence is observed between operating cash flows and FCFE, particularly between 2018 and 2020. In 2018, despite a substantial increase in operating cash flows, FCFE decreased, suggesting elevated capital expenditures or significant debt repayments. The most pronounced gap occurred in 2019, where operating cash flows remained robust at 1.85 billion US$, yet FCFE dropped precipitously to 37.68 million US$, indicating a period of intensive capital investment or financing outflows. The convergence observed in 2021 suggests a shift toward capital discipline or a reduction in net investment relative to operating cash generation.
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Price to FCFE Ratio, Current
EQT Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 367,046,005 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 1,123,672) |
| FCFE per share | 3.06 |
| Current share price (P) | 39.10 |
| Valuation Ratio | |
| P/FCFE | 12.77 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 17.99 |
| ConocoPhillips | 24.16 |
| Exxon Mobil Corp. | 27.90 |
| P/FCFE, Sector | |
| Oil, Gas & Consumable Fuels | 34.04 |
| P/FCFE, Industry | |
| Energy | 35.34 |
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
EQT Corp., 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 | 376,023,250 | 278,854,465 | 255,454,000 | 254,762,000 | 264,473,000 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 1,123,672) | 187,020) | 37,676) | 1,379,150) | 1,553,757) | |
| FCFE per share3 | 2.99 | 0.67 | 0.15 | 5.41 | 5.87 | |
| Share price1, 4 | 21.67 | 19.17 | 5.38 | 18.20 | 53.34 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 7.25 | 28.58 | 36.48 | 3.36 | 9.08 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | 32.05 | — | — | — | — | |
| ConocoPhillips | 10.61 | — | — | — | — | |
| Exxon Mobil Corp. | 19.82 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 19.75 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Energy | 20.81 | — | — | — | — | |
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
= 1,123,672,000 ÷ 376,023,250 = 2.99
4 Closing price as at the filing date of EQT Corp. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 21.67 ÷ 2.99 = 7.25
6 Click competitor name to see calculations.
The five-year period analyzed reveals significant volatility in equity valuation and free cash flow to equity (FCFE), leading to drastic fluctuations in the P/FCFE ratio. The relationship between share price and cash flow generation shifted markedly between 2017 and 2021, characterized by a severe contraction in 2019 followed by a partial recovery.
- Share Price Volatility
- A substantial downward trend is observed from 2017 to 2019, with the share price declining from 53.34 to a low of 5.38. A recovery phase occurred in 2020 and 2021, with the price ascending to 21.67, though it remained well below 2017 levels.
- FCFE per Share Performance
- Free cash flow per share remained relatively stable between 2017 and 2018, before experiencing a precipitous drop to 0.15 in 2019. This represents a critical contraction in cash flow generation. Subsequent years show a progressive recovery, with FCFE rising to 0.67 in 2020 and reaching 2.99 by 2021.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio exhibited extreme variance, peaking at 36.48 in 2019. This spike was driven by the collapse in FCFE per share, which diminished more rapidly than the share price. In 2020, the ratio remained elevated at 28.58 as the share price recovered more quickly than the cash flows. By 2021, the ratio normalized to 7.25, reflecting a synchronization where cash flow growth began to catch up with the equity valuation.
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