Price to FCFE (P/FCFE)
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- Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
Emerson Electric Co., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
The data presents financial cash flow metrics over a six-year period, providing insights into operational efficiency and equity distribution capacity.
- Cash Provided by Operating Activities
- This metric shows a declining trend from 2014 to 2016, dropping from 3,692 million USD to 2,499 million USD. From 2016 onwards, there is a consistent upward trajectory, reaching 3,006 million USD in 2019, which is slightly below the 2014 level but indicates recovery and stabilization after the initial decline.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a notable decrease from 3,219 million USD in 2014 to a low of 235 million USD in 2017, indicating a significant reduction in cash available to shareholders. However, from 2017 forward, the trend reverses sharply, with a considerable increase to 3,441 million USD in 2019, surpassing the 2014 figure. This suggests improved cash generation and enhanced capacity to fund equity holders in later years.
- Overall Analysis
- The data reveals a period of financial pressure between 2014 and 2017, as evidenced by declining operating cash flow and FCFE. The sharp decline in FCFE compared to operating cash flow suggests increased capital expenditures or changes in working capital requirements during those years. Post-2017, both operating cash flow and FCFE demonstrate recovery and growth, indicating operational improvements and better cash management strategies that positively impact the company's ability to generate cash and return value to equity investors.
Price to FCFE Ratio, Current
Emerson Electric Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
Based on: 10-K (reporting date: 2019-09-30).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Emerson Electric Co., historical P/FCFE calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | |||||||
| FCFE per share3 | |||||||
| Share price1, 4 | |||||||
| Valuation Ratio | |||||||
| P/FCFE5 | |||||||
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Boeing Co. | |||||||
| Caterpillar Inc. | |||||||
| Eaton Corp. plc | |||||||
| GE Aerospace | |||||||
| Honeywell International Inc. | |||||||
| Lockheed Martin Corp. | |||||||
| RTX Corp. | |||||||
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
1 Data adjusted for splits and stock dividends.
3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Emerson Electric Co. Annual Report.
5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a generally upward trend from 2014 to 2019. It started at $64.15 in 2014, declined to $50.01 in 2015, then gradually increased each year thereafter, reaching $73.07 in 2019. This progression indicates a recovery after the 2015 dip, with the price surpassing the initial 2014 level by the end of the period.
- Free Cash Flow to Equity (FCFE) per Share Trend
- FCFE per share showed notable fluctuation across the years. Beginning at $4.64 in 2014, it decreased steadily to $0.37 in 2017, marking a significant reduction in free cash flow generation during this period. After 2017, FCFE per share improved markedly, rising to $3.80 in 2018 and further to $5.65 in 2019, the highest value in the series, indicating enhanced cash flow availability for shareholders towards the end of the period.
- Price-to-FCFE (P/FCFE) Ratio Trend
- The P/FCFE ratio illustrated considerable volatility during the years observed. Starting at 13.82 in 2014, it decreased to 12.19 in 2015, suggesting a drop in valuation relative to free cash flow. However, in 2016 the ratio rose sharply to 19.06, culminating in an extreme spike to 164.58 in 2017, which reflects a disproportionate increase in share price relative to the sharp decline in FCFE per share noted in that year. Thereafter, the ratio normalized somewhat, declining to 18.03 in 2018 and 12.94 in 2019, aligning more closely with earlier years and indicating a more balanced valuation relative to cash flow generation.
- Overall Observations
- The financial indicators reveal a period of stress around 2016-2017, characterized by a steep drop in FCFE per share accompanied by an anomalous spike in the P/FCFE ratio, suggesting potential investor overvaluation or temporary operational challenges impacting cash flow. The subsequent recovery in both FCFE per share and share price, along with the stabilization of the P/FCFE ratio by 2019, points to improved financial health and market confidence in the company’s ability to generate shareholder cash flow.