Price to FCFE (P/FCFE)
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).
The financial performance between 2019 and 2023 is characterized by stable operational cash generation and a volatile trend in cash flows available to equity holders. While core operations maintained a consistent baseline, the cash remaining for shareholders fluctuated significantly due to changes in capital expenditures and financing activities.
- Net Cash Provided by Operating Activities
- Operating cash flows remained relatively resilient over the five-year period. Following a moderate decline from US$ 1,823 million in 2019 to US$ 1,613 million in 2020, a recovery trend was established. The figure climbed to a peak of US$ 2,044 million by December 31, 2023, reflecting a steady improvement in the company's ability to generate cash from its primary business operations.
- Free Cash Flow to Equity (FCFE) Trends
- FCFE demonstrated a strong upward trajectory in the early part of the period, increasing from US$ 1,021 million in 2019 to a peak of US$ 2,084 million in 2021. This growth was followed by a gradual contraction, with values declining to US$ 1,877 million in 2022 and US$ 1,790 million in 2023. Despite this recent decline, the 2023 FCFE remains substantially higher than the 2019 level.
- Analysis of Cash Flow Divergence
- A significant shift in the relationship between operating cash and FCFE is observed between 2021 and 2022. During these two years, FCFE exceeded the net cash provided by operating activities, reaching a surplus of US$ 247 million in 2021. This suggests that net borrowing exceeded capital expenditures during this window. By 2023, the trend reversed, with FCFE falling below operating cash flow by US$ 254 million, indicating a shift toward increased capital investment or debt reduction.
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Price to FCFE Ratio, Current
Motorola Solutions Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 166,840,999 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 1,790) |
| FCFE per share | 10.73 |
| Current share price (P) | 398.58 |
| Valuation Ratio | |
| P/FCFE | 37.15 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | 42.25 |
| Arista Networks Inc. | 50.66 |
| Cisco Systems Inc. | 26.09 |
| Dell Technologies Inc. | 13.89 |
| Lumentum Holdings Inc. | 298.59 |
| Super Micro Computer Inc. | — |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | 51.35 |
| P/FCFE, Industry | |
| Information Technology | 71.93 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Motorola Solutions Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 166,132,981 | 167,250,071 | 168,209,089 | 169,028,294 | 170,579,096 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 1,790) | 1,877) | 2,084) | 1,430) | 1,021) | |
| FCFE per share3 | 10.77 | 11.22 | 12.39 | 8.46 | 5.99 | |
| Share price1, 4 | 323.90 | 267.36 | 221.00 | 181.07 | 184.41 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 30.06 | 23.82 | 17.84 | 21.40 | 30.81 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Apple Inc. | 30.63 | 22.26 | 23.27 | — | — | |
| Arista Networks Inc. | 41.51 | 96.72 | 42.05 | — | — | |
| Cisco Systems Inc. | 12.84 | 17.18 | 21.02 | — | — | |
| Dell Technologies Inc. | 9.06 | 33.54 | 14.15 | — | — | |
| Lumentum Holdings Inc. | 6.92 | 5.06 | 9.31 | — | — | |
| Super Micro Computer Inc. | 41.38 | 139.27 | 13.81 | — | — | |
| P/FCFE, Sector | ||||||
| Technology Hardware & Equipment | 27.33 | 22.05 | 22.76 | — | — | |
| P/FCFE, Industry | ||||||
| Information Technology | 33.12 | 26.68 | 27.39 | — | — | |
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
= 1,790,000,000 ÷ 166,132,981 = 10.77
4 Closing price as at the filing date of Motorola Solutions Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 323.90 ÷ 10.77 = 30.06
6 Click competitor name to see calculations.
The financial trajectory from 2019 to 2023 is characterized by a substantial increase in share price and a cyclical movement in the Price to Free Cash Flow to Equity (P/FCFE) multiple.
- Share Price Performance
- A consistent upward trend is observed from 2020 onward, with the share price ascending from 181.07 US$ to 323.90 US$ by the end of 2023. This indicates strong market appreciation over the analyzed period.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share experienced significant growth in the initial phase, rising from 5.99 US$ in 2019 to a peak of 12.39 US$ in 2021. Following this peak, a gradual decline was recorded, with values receding to 11.22 US$ in 2022 and 10.77 US$ in 2023.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio exhibited a U-shaped pattern. An initial contraction occurred between 2019 and 2021, where the ratio dropped from 30.81 to 17.84, reflecting a period where cash flow growth outpaced share price appreciation. Conversely, a valuation expansion took place between 2022 and 2023, as the ratio climbed back to 30.06. This latter increase was driven by the share price continuing to rise despite a slight decrease in the underlying FCFE per share.
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