Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Axon Enterprise Inc., FCFE calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
Analysis of cash flow trends from 2018 to 2022 reveals a period of initial stability followed by significant volatility and a subsequent exponential increase in cash available to equity holders. While operational cash generation showed a consistent recovery trend after 2020, the free cash flow to equity exhibited much more dramatic fluctuations.
- Operating Cash Flow Trends
- Net cash provided by operating activities remained stable between 2018 and 2019, followed by a notable contraction in 2020, where values dropped to 38,481 thousand US dollars. A strong upward trajectory was established thereafter, with cash provided by operations increasing to 124,494 thousand US dollars in 2021 and further climbing to 235,361 thousand US dollars by the end of 2022.
- Free Cash Flow to Equity (FCFE) Volatility
- FCFE demonstrated higher variance than operating cash flows. After starting with positive values in 2018 and 2019, FCFE shifted to a negative position of -34,294 thousand US dollars in 2020. This trend reversed in 2021 with a return to positive territory, culminating in a substantial increase to 658,314 thousand US dollars in 2022.
- Analysis of FCFE and Operational Divergence
- A significant divergence between operating cash flow and FCFE is observed in 2022. In this period, FCFE exceeded net cash provided by operating activities by 422,953 thousand US dollars. This discrepancy indicates that the surge in cash available to equity holders was not driven solely by operational performance, but likely resulted from significant financing activities, such as a substantial increase in net borrowing.
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Price to FCFE Ratio, Current
Axon Enterprise Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 73,885,305 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 658,314) |
| FCFE per share | 8.91 |
| Current share price (P) | 226.88 |
| Valuation Ratio | |
| P/FCFE | 25.46 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | — |
| Caterpillar Inc. | 30.73 |
| Eaton Corp. plc | 42.99 |
| GE Aerospace | 44.70 |
| Honeywell International Inc. | 8.72 |
| Lockheed Martin Corp. | 14.53 |
| RTX Corp. | 56.59 |
| P/FCFE, Sector | |
| Capital Goods | 47.82 |
| P/FCFE, Industry | |
| Industrials | 40.37 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Axon Enterprise Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 72,862,227 | 70,931,874 | 63,783,849 | 59,528,200 | 58,829,384 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 658,314) | 74,259) | (34,294) | 49,330) | 52,178) | |
| FCFE per share3 | 9.04 | 1.05 | -0.54 | 0.83 | 0.89 | |
| Share price1, 4 | 200.31 | 134.14 | 165.49 | 77.37 | 55.49 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 22.17 | 128.13 | — | 93.37 | 62.56 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | 120.43 | — | — | — | — | |
| Caterpillar Inc. | 24.03 | 16.36 | — | — | — | |
| Eaton Corp. plc | 28.68 | 24.43 | — | — | — | |
| GE Aerospace | 44.45 | — | — | — | — | |
| Honeywell International Inc. | 27.59 | 46.23 | — | — | — | |
| Lockheed Martin Corp. | 11.63 | 14.65 | — | — | — | |
| RTX Corp. | 26.71 | 35.07 | — | — | — | |
| P/FCFE, Sector | ||||||
| Capital Goods | 25.94 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Industrials | 25.07 | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 658,314,000 ÷ 72,862,227 = 9.04
4 Closing price as at the filing date of Axon Enterprise Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 200.31 ÷ 9.04 = 22.17
6 Click competitor name to see calculations.
The financial trajectory from 2018 to 2022 is characterized by a substantial increase in share price and a volatile but ultimately expanding Free Cash Flow to Equity (FCFE). While the share price grew from 55.49 US$ in 2018 to 200.31 US$ in 2022, the P/FCFE ratio exhibited significant fluctuations, reflecting shifting market valuations relative to the company's cash-generating capacity.
- Share Price Dynamics
- A consistent upward trajectory is observed in the share price, which more than tripled over the five-year period. A temporary correction occurred in 2021, where the price declined to 134.14 US$ from a 2020 peak of 165.49 US$, before reaching its period high in 2022.
- FCFE per Share Performance
- FCFE per share remained relatively stagnant between 2018 and 2019, followed by a downturn into negative territory in 2020 (-0.54 US$), indicating a period of capital intensity or increased financing activities. A recovery was noted in 2021, culminating in a sharp increase to 9.04 US$ by the end of 2022, representing a nearly ninefold increase from the previous year.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio expanded from 62.56 in 2018 to a peak of 128.13 in 2021. This expansion suggests that the market attributed a high growth premium to the company despite modest current cash flows. The ratio underwent a dramatic contraction to 22.17 in 2022. This compression was driven by the exponential growth in FCFE per share, which effectively aligned the market valuation more closely with the company's realized cash flow generation.
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