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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Price to Earnings (P/E) since 2013
- Price to Sales (P/S) since 2013
- Aggregate Accruals
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Free Cash Flow to The Firm (FCFF)
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1, 2 See details »
- Operating Cash Flow
- The net cash provided by operating activities exhibited significant fluctuations over the analyzed periods. Initially, there was a strong cash inflow of approximately $555.1 million in early 2018, followed by a substantial decline to around $300.6 million in early 2019. The figure experienced a moderate recovery in 2020, reaching approximately $339.2 million, and then rose sharply to $500.8 million in early 2021. The peak was reached in early 2022 with about $662.1 million, after which a noticeable decline to $403.7 million occurred in early 2023.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm also displayed a volatile pattern, somewhat mirroring the operating cash flow trend but with relatively lower absolute values. The FCFF started at roughly $444.1 million in early 2018, dropped sharply to about $190.8 million in early 2019, and then showed a gradual increase to $242.9 million in 2020. This upward trend continued with a significant rise to $355.5 million in early 2021 and further to $430.4 million in early 2022. However, in early 2023, the FCFF fell substantially to approximately $230.6 million.
- Interpretation
- The patterns in both operating cash flow and free cash flow suggest a period of considerable volatility. The significant dips in 2019 could indicate operational challenges or increased capital expenditures impacting cash generation. The subsequent recovery and peak in 2021 and 2022 reflect improved operational efficiency or favorable market conditions. The decline in 2023 for both metrics may point to emerging difficulties, increased investment outflows, or changes in working capital requirements. Overall, the trends indicate cyclical performance with periods of strong cash generation interspersed with phases of contraction.
Interest Paid, Net of Tax
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
2 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= × =
3 2023 Calculation
Capitalized interest for capital projects, tax = Capitalized interest for capital projects × EITR
= × =
- Effective income tax rate (EITR)
- The effective income tax rate exhibits significant variability over the analyzed periods. It starts extremely high at 92.8% in early 2018, then drops sharply to around 16.8% by early 2019. From 2019 to 2020, it shows a slight increase to 18.1%, followed by a further rise to 27.8% in early 2021. Subsequently, it declines again to 16.2% in early 2022, and rises modestly to 21% in early 2023. Overall, the rate fluctuates frequently within a range of approximately 16% to 28% after the initial anomaly in 2018.
- Cash paid for interest, net of tax
- This item displays a clear upward trend throughout the timeframe. Starting at approximately 2 million USD in early 2018, the interest cash payments increase substantially each year, reaching roughly 26 million USD by early 2019, and further climbing to around 35 million USD in early 2020. Despite a dip to around 20 million USD in early 2021, there is a surge again to over 33 million USD in early 2022, followed by a sharp increase to more than 105 million USD in early 2023. This pattern indicates growing interest expenses or increased financing costs net of tax over time, with some volatility.
- Capitalized interest for capital projects, net of tax
- The capitalized interest follows an overall increasing trend but with some fluctuation. Beginning at a relatively low base of 238 thousand USD in early 2018, it rises markedly to 2.6 million USD by early 2019, then continues increasing to just over 4 million USD in early 2020 and remains relatively stable near 4 million USD in early 2021. A pronounced peak occurs in early 2022, reaching approximately 10.2 million USD, followed by a significant drop to about 3.9 million USD in early 2023. These changes may reflect varying levels of capital project activity or shifts in interest capitalization policies.
Enterprise Value to FCFF Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | |
Free cash flow to the firm (FCFF) | |
Valuation Ratio | |
EV/FCFF | |
Benchmarks | |
EV/FCFF, Competitors1 | |
Amazon.com Inc. | |
Home Depot Inc. | |
Lowe’s Cos. Inc. | |
TJX Cos. Inc. | |
EV/FCFF, Sector | |
Consumer Discretionary Distribution & Retail | |
EV/FCFF, Industry | |
Consumer Discretionary |
Based on: 10-K (reporting date: 2023-01-28).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Enterprise value (EV)1 | |||||||
Free cash flow to the firm (FCFF)2 | |||||||
Valuation Ratio | |||||||
EV/FCFF3 | |||||||
Benchmarks | |||||||
EV/FCFF, Competitors4 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
TJX Cos. Inc. | |||||||
EV/FCFF, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
EV/FCFF, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited an overall upward trend from 2018 to 2021, increasing from approximately $2.9 billion to $13.6 billion. However, a notable decline occurred after 2021, with the value decreasing to around $7.9 billion in 2022 and further to $7.1 billion in 2023. This pattern suggests significant growth followed by a contraction in market valuation or underlying business conditions.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm showed variability across the periods. After an initial drop from $444 million in 2018 to $191 million in 2019, it gradually increased to $430 million by 2022. This was followed by a sharp decline in 2023 to approximately $231 million. The fluctuations indicate periods of varying operational cash generation strength.
- EV to FCFF Ratio
- The EV/FCFF ratio illustrates the valuation multiple relative to free cash flow. It started at a relatively low level of 6.55 in 2018, spiked substantially in 2019 to 15.9 and remained elevated in the subsequent years, peaking at 38.26 in 2021. Post-2021, the ratio decreased to 18.35 in 2022 but surged again to 30.65 in 2023. The high ratio levels during 2020-2023 suggest increased valuation multiples, potentially reflecting market expectations or perceived growth opportunities despite fluctuating cash flows.
- Overall Insights
- The data indicates a period of rapid market value expansion through 2021, not fully supported by parallel growth in free cash flow, as evidenced by the rising EV/FCFF ratio. The subsequent decrease in enterprise value combined with declining free cash flow in 2023 led to persistently high valuation multiples. This may highlight investor confidence on future prospects amid challenges in cash generation, suggesting cautious scrutiny of the company’s operational performance against its market valuation is warranted.