Price to FCFE (P/FCFE)
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Motorola Solutions Inc. pages available for free this week:
- Income Statement
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
Motorola Solutions Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net cash provided by operating activities
- The net cash provided by operating activities shows a moderate fluctuation over the presented periods. Starting at 1,823 million US dollars in 2019, the figure declined to 1,613 million in 2020. It subsequently increased to 1,837 million in 2021 and slightly decreased to 1,823 million in 2022. The most recent data point for 2023 indicates an increase to 2,044 million US dollars, reaching the highest level across the five-year span. This suggests a recovery and growth in operating cash generation capacity in the latest period.
- Free cash flow to equity (FCFE)
- The free cash flow to equity exhibits an upward trend from 2019 to 2021, rising from 1,021 million to 2,084 million US dollars, more than doubling during this period. After peaking in 2021, FCFE declined to 1,877 million in 2022 and further to 1,790 million in 2023. Despite this decrease, FCFE remains significantly higher than the 2019 level. This pattern indicates strong cash flow generation available to equity holders with some reduction in the last two years, which may be attributed to changes in capital expenditures, working capital, or other financing factors.
Price to FCFE Ratio, Current
Motorola Solutions Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | |
| Arista Networks Inc. | |
| Cisco Systems Inc. | |
| Dell Technologies Inc. | |
| Super Micro Computer Inc. | |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Motorola Solutions Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| P/FCFE, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| P/FCFE, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Motorola Solutions Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a consistent upward trajectory over the five-year period. It started at $184.41 at the end of 2019, experienced a slight dip to $181.07 in 2020, then increased significantly each subsequent year, reaching $323.90 by the end of 2023. This represents an overall strong appreciation in market value.
- FCFE Per Share Trend
- The Free Cash Flow to Equity (FCFE) per share showed a steady increase from 2019 through 2021, growing from $5.99 to $12.39. However, FCFE per share declined in 2022 to $11.22 and further decreased in 2023 to $10.77, indicating a recent downturn in cash flow generation available to equity holders after a period of growth.
- P/FCFE Ratio Trend
- The Price-to-FCFE multiple decreased markedly from 30.81 in 2019 to a low of 17.84 in 2021, suggesting the market's increasing valuation of cash flow generation relative to share price during this stage. However, this trend reversed beginning in 2022, with the P/FCFE rising to 23.82 and then to 30.06 in 2023, reflecting either a higher share price relative to cash flow or investor expectations of future growth despite declining FCFE per share.
- Overall Insights
- The data reveals an initial phase where improving cash flows drove higher investor confidence, lowering the P/FCFE ratio. More recently, the rise in share price amid declining FCFE per share has increased the valuation multiple, suggesting potential investor optimism or pricing in of future performance improvements. This divergence between share price growth and cash flow per share performance may warrant closer monitoring of underlying earnings quality and market expectations.