Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Sysco Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
The financial trajectory from 2019 to 2024 exhibits a period of significant volatility followed by a phase of sustained growth in both operating cash flows and free cash flow to equity (FCFE).
- Operating Cash Flow Performance
- Net cash provided by operating activities experienced an initial decline between 2019 and 2020, decreasing from US$ 2,411 million to US$ 1,619 million. After a period of relative stability between 2021 and 2022, a strong recovery trend emerged, with operating cash flows increasing to US$ 2,868 million in 2023 and reaching a peak of US$ 2,989 million in 2024.
- Free Cash Flow to Equity (FCFE) Volatility
- FCFE displayed extreme fluctuations during the mid-period. A substantial surge was recorded in 2020, reaching US$ 7,208 million, which significantly exceeded the operating cash flow for that period. This peak was followed by a sharp reversal in 2021, where FCFE became negative at US$ -2,336 million, suggesting a period of intensive capital investment or significant debt repayment.
- Recent Cash Flow Trends and Divergence
- From 2022 onward, a consistent upward trajectory in FCFE is observed, rising from US$ 541 million in 2022 to US$ 1,536 million in 2023, and further accelerating to US$ 3,351 million in 2024. Notably, by 2024, FCFE surpassed the net cash provided by operating activities, indicating a positive net impact from financing activities or a reduction in capital expenditures relative to operational cash generation.
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Price to FCFE Ratio, Current
Sysco Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 491,520,584 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,351) |
| FCFE per share | 6.82 |
| Current share price (P) | 76.67 |
| Valuation Ratio | |
| P/FCFE | 11.25 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Costco Wholesale Corp. | 53.11 |
| Target Corp. | 22.31 |
| Walmart Inc. | 41.55 |
| P/FCFE, Sector | |
| Consumer Staples Distribution & Retail | 49.56 |
| P/FCFE, Industry | |
| Consumer Staples | 37.82 |
Based on: 10-K (reporting date: 2024-06-29).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Sysco Corp., historical P/FCFE calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 491,520,584 | 504,925,847 | 506,110,343 | 512,081,796 | 508,535,623 | 513,176,946 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 3,351) | 1,536) | 541) | (2,336) | 7,208) | 1,470) | |
| FCFE per share3 | 6.82 | 3.04 | 1.07 | -4.56 | 14.17 | 2.86 | |
| Share price1, 4 | 76.67 | 69.76 | 83.63 | 78.99 | 57.50 | 73.35 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 11.25 | 22.94 | 78.30 | — | 4.06 | 25.61 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Costco Wholesale Corp. | 66.49 | 37.64 | 77.36 | 37.34 | 23.41 | — | |
| Target Corp. | 20.98 | 79.07 | 16.91 | 11.21 | — | — | |
| Walmart Inc. | 29.40 | 25.97 | 122.02 | 18.26 | — | — | |
| P/FCFE, Sector | |||||||
| Consumer Staples Distribution & Retail | 36.75 | 31.77 | 59.72 | 19.62 | — | — | |
| P/FCFE, Industry | |||||||
| Consumer Staples | 32.08 | 24.17 | 25.27 | 24.83 | — | — | |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,351,000,000 ÷ 491,520,584 = 6.82
4 Closing price as at the filing date of Sysco Corp. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 76.67 ÷ 6.82 = 11.25
6 Click competitor name to see calculations.
An analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals substantial volatility between 2019 and 2024. The fluctuations in the valuation multiple are predominantly attributed to instability in FCFE per share, which experienced extreme variance, ranging from a deficit of -4.56 USD in 2021 to a peak of 14.17 USD in 2020.
- FCFE per share Trends
- Free Cash Flow to Equity per share exhibited significant instability during the early part of the period, with a sharp increase in 2020 followed by a transition to negative values in 2021. Since 2022, a consistent recovery trend is observed, with FCFE per share rising steadily from 1.07 USD to 6.82 USD by June 2024.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio demonstrated extreme fluctuations corresponding to the volatility of cash flows. The ratio reached a period low of 4.06 in 2020 due to a surge in FCFE. Conversely, the ratio peaked at 78.30 in 2022, a result of the share price remaining near its six-year high of 83.63 USD while FCFE per share was severely depressed at 1.07 USD.
- Valuation Compression
- A marked compression of the P/FCFE ratio is evident from 2022 to 2024, falling from 78.30 to 11.25. This downward trajectory indicates that the growth in cash flow generation has significantly outpaced the movements in the share price, resulting in a lower and potentially more sustainable valuation multiple.
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