Price to FCFE (P/FCFE)
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
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Free Cash Flow to Equity (FCFE)
Monsanto Co., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
The analysis of the financial data over the six-year period reveals notable fluctuations in cash flow metrics.
- Net Cash Provided by Operating Activities
-
The net cash generated from operating activities fluctuates over the years, with values ranging from a low of 2,588 million USD in 2016 to a high of 3,226 million USD in 2017.
Between 2012 and 2015, the net cash from operations remained relatively stable, oscillating around the 3,000 million USD mark, peaking in 2015 at 3,108 million USD.
A noticeable dip occurs in 2016, when the figure declines by approximately 20% from the previous year to 2,588 million USD, followed by a recovery in 2017 back to the highest point observed in this series, at 3,226 million USD.
- Free Cash Flow to Equity (FCFE)
-
Free cash flow to equity shows more pronounced volatility compared to operating cash flows.
From 2012 to 2013, FCFE remains relatively consistent, around 2,100 million USD.
A significant spike occurs in 2014, reaching 7,493 million USD, which is more than triple the previous year's value.
After this peak, FCFE experiences a sharp decline to 3,367 million USD in 2015 and continues to fall in the following years, reaching 1,821 million USD in 2016 and further decreasing to 889 million USD in 2017.
This pattern suggests an extraordinary event or adjustment that significantly increased FCFE in 2014, followed by normalization and a downward trend in subsequent years.
- Overall Insights
-
The operating cash flow exhibits relative stability with a temporary dip in 2016 and recovery in 2017, whereas FCFE demonstrates greater volatility with a pronounced peak in 2014 followed by a consistent decrease.
The disparity in the behavior of these two cash flow figures may indicate changes in capital expenditures, financing activities, or one-time items affecting the equity cash flows distinctly from operating cash flows.
Close examination of the underlying causes behind the 2014 FCFE spike and the 2016 dip in operating cash flow would be advisable to better understand the company's financial dynamics during this period.
Price to FCFE Ratio, Current
Monsanto Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| lululemon athletica inc. | |
| Nike Inc. | |
Based on: 10-K (reporting date: 2017-08-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Monsanto Co., historical P/FCFE calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | |||||||
| FCFE per share3 | |||||||
| Share price1, 4 | |||||||
| Valuation Ratio | |||||||
| P/FCFE5 | |||||||
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| lululemon athletica inc. | |||||||
| Nike Inc. | |||||||
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 Data adjusted for splits and stock dividends.
3 2017 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Monsanto Co. Annual Report.
5 2017 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The financial data reveals several notable trends over the six-year period ending in August 2017.
- Share Price
- The share price exhibited a general upward trend with some fluctuations. Starting at $88.69 in 2012, it increased steadily to a peak of $112.18 by 2014. It then declined to $93.73 in 2015 before resuming growth and reaching its highest point of $121.52 in 2017. This pattern suggests periods of both investor optimism and cautiousness.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share showed considerable volatility during the timeframe. It started modestly at $4.01 in 2012 with little change in 2013. A substantial surge occurred in 2014, with FCFE per share nearly quadrupling to $15.48. However, this spike was not sustained as values declined sharply to $7.66 in 2015 and further decreased steadily to $2.02 by 2017. This volatility may indicate shifts in cash flow generation capacity or changes in capital expenditures and working capital management.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio experienced significant variation inversely related to FCFE per share movements. The ratio started at 22.14 in 2012 and increased to 26.62 in 2013. It then dropped sharply to 7.25 in 2014, coinciding with the spike in FCFE per share, reflecting a relatively lower stock price compared to cash flow. Following this, the ratio rose again to 12.24 in 2015 and escalated substantially to 60.17 by 2017, as FCFE per share fell while the share price increased. This indicates that the market valuation became increasingly stretched relative to the company’s free cash flow generation.
Overall, the data suggests a period of financial performance characterized by fluctuating free cash flow and escalating market valuation multiples, especially toward the end of the period. The rising share price coupled with declining FCFE per share raises considerations about market expectations and the sustainability of cash flow levels.