Free Cash Flow to Equity (FCFE)
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited a generally upward trend over the six-year period analyzed. Beginning at approximately 586 million USD in early 2019, it increased modestly to around 607 million USD in 2020. A significant jump occurred in 2021, with operating cash flow more than doubling to about 1.27 billion USD. This elevated level sustained into 2022, reaching approximately 1.37 billion USD, before dipping to roughly 1.05 billion USD in early 2023. The most recent figure shows a substantial recovery, peaking at about 1.68 billion USD in early 2024. Overall, this pattern suggests strong operating cash generation capacity with some volatility, including a dip in 2023 followed by an impressive rebound.
- Free Cash Flow to Equity (FCFE)
- Free cash flow to equity followed a similar trajectory with fluctuating increases and decreases. Starting at nearly 396 million USD in 2019, it saw incremental growth to roughly 421 million USD in 2020. A pronounced increase occurred in 2021, where FCFE surged to about 1.1 billion USD. However, this was followed by a marked decline to approximately 844 million USD in 2022, continuing downward to 699 million USD in 2023. The figure rebounded sharply in early 2024, reaching nearly 1.5 billion USD. The fluctuations indicate variability in capital expenditures, dividends, or debt activities affecting the cash flows available to shareholders. Despite this volatility, the overall trend by the end of the period reflects enhanced capacity to generate equity-level cash flow compared to the starting point.
- Comparative Insights
- Both metrics demonstrate a pattern of growth punctuated by occasional declines, notably around 2023. The recovery in 2024 for both operating cash flow and FCFE is particularly pronounced, suggesting improved operational performance and possibly effective capital management strategies. This upward movement in available cash flow may provide flexibility for investment, debt reduction, or returning value to shareholders.
Price to FCFE Ratio, Current
No. shares of common stock outstanding | 64,308,083 |
Selected Financial Data (US$) | |
Free cash flow to equity (FCFE) (in thousands) | 1,491,815) |
FCFE per share | 23.20 |
Current share price (P) | 287.81 |
Valuation Ratio | |
P/FCFE | 12.41 |
Benchmarks | |
P/FCFE, Competitors1 | |
Amazon.com Inc. | 87.55 |
Home Depot Inc. | 14.61 |
Lowe’s Cos. Inc. | 17.52 |
TJX Cos. Inc. | 32.79 |
P/FCFE, Sector | |
Consumer Discretionary Distribution & Retail | 52.06 |
P/FCFE, Industry | |
Consumer Discretionary | 37.03 |
Based on: 10-K (reporting date: 2024-01-28).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
---|---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 64,112,265 | 66,228,239 | 71,558,874 | 76,192,973 | 77,197,681 | 78,563,968 | |
Selected Financial Data (US$) | |||||||
Free cash flow to equity (FCFE) (in thousands)2 | 1,491,815) | 698,705) | 843,852) | 1,101,690) | 421,018) | 395,884) | |
FCFE per share3 | 23.27 | 10.55 | 11.79 | 14.46 | 5.45 | 5.04 | |
Share price1, 4 | 295.05 | 117.70 | 148.55 | 184.00 | 42.05 | 59.36 | |
Valuation Ratio | |||||||
P/FCFE5 | 12.68 | 11.16 | 12.60 | 12.73 | 7.71 | 11.78 | |
Benchmarks | |||||||
P/FCFE, Competitors6 | |||||||
Amazon.com Inc. | 89.69 | 84.16 | 240.95 | — | 55.66 | — | |
Home Depot Inc. | 20.12 | 19.60 | 19.87 | 15.41 | 14.99 | — | |
Lowe’s Cos. Inc. | 18.03 | 7.08 | 13.55 | 12.28 | 8.69 | — | |
TJX Cos. Inc. | 28.74 | 33.59 | — | 10.55 | 19.71 | — | |
P/FCFE, Sector | |||||||
Consumer Discretionary Distribution & Retail | 53.08 | 41.58 | 51.89 | 59.10 | 38.09 | — | |
P/FCFE, Industry | |||||||
Consumer Discretionary | 39.60 | 30.84 | 36.19 | 82.92 | 32.04 | — |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,491,815,000 ÷ 64,112,265 = 23.27
4 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 295.05 ÷ 23.27 = 12.68
6 Click competitor name to see calculations.
The financial data reflects several notable trends over the six-year period from early 2019 through early 2024.
- Share Price
- The share price experienced significant volatility. Initially, from early 2019 to early 2020, there was a sharp decline from $59.36 to $42.05. Subsequently, the share price surged dramatically, reaching a peak of $184 in early 2021. After this peak, it declined steadily over the next two years to $117.70 in early 2023. However, a substantial rebound occurred by early 2024, with the price more than doubling to $295.05, representing the highest value in the period under review.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share displayed a generally upward trajectory with some fluctuations. Starting at $5.04 in early 2019, it increased slightly to $5.45 in early 2020. A significant rise occurred by early 2021 to $14.46, followed by a mild decline over the next two years to $10.55 in early 2023. In the final year, FCFE per share sharply increased to $23.27, marking the highest value and more than doubling the previous year's figure.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio exhibited moderate fluctuations but remained within a relatively narrow range. It declined from 11.78 in early 2019 to a low of 7.71 in early 2020, reflecting a lower valuation relative to free cash flow during the share price decline. The ratio then rose to peak at 12.73 in early 2021, indicating a higher market valuation during the share price surge. Over the next two years, the ratio decreased slightly but stayed around the 11–12 mark. By early 2024, it reached 12.68, approaching the notable high of 2021.
Overall, the data illustrates periods of considerable share price volatility that do not always directly correlate with changes in FCFE per share, suggesting market sentiment and other external factors may have influenced valuations. The consistent rise in FCFE per share, especially the marked increase in early 2024, reflects solid underlying financial performance. The P/FCFE ratio trends suggest that valuation multiples expanded during market optimism periods and contracted during downturns but generally remained stable in the latter years.