Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Biogen Inc., FCFE calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
An analysis of cash flow dynamics between 2017 and 2021 reveals a period of expansion followed by a notable contraction in both operating cash flows and free cash flow to equity (FCFE).
- Net Cash Flow from Operating Activities
- Operating cash flows experienced a steady ascent from 2017 to 2019, peaking at US$ 7,078,600 thousand. However, a significant reversal occurred in 2020, where cash flow from operations dropped by approximately 40% to US$ 4,229,800 thousand. This downward trajectory continued into 2021, reaching a five-year low of US$ 3,639,900 thousand.
- Free Cash Flow to Equity (FCFE)
- FCFE followed a similar growth trajectory in the early part of the period, increasing from US$ 2,147,300 thousand in 2017 to a peak of US$ 6,409,100 thousand in 2019. Following this peak, FCFE declined to US$ 5,220,400 thousand in 2020 and further contracted to US$ 3,193,000 thousand by the end of 2021, indicating a reduction in the cash available to shareholders.
- Comparative Cash Flow Analysis
- A divergence is observed in 2020, where FCFE (US$ 5,220,400 thousand) exceeded the net cash flow provided by operating activities (US$ 4,229,800 thousand). This anomaly suggests that the cash available to equity holders was augmented by non-operating factors, likely through a reduction in capital expenditures or a net increase in debt financing. By 2021, the relationship returned to a standard pattern, with FCFE falling below the operating cash flow figure.
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Price to FCFE Ratio, Current
Biogen Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 144,001,404 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 3,193,000) |
| FCFE per share | 22.17 |
| Current share price (P) | 273.56 |
| Valuation Ratio | |
| P/FCFE | 12.34 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 29.44 |
| Amgen Inc. | 102.99 |
| Bristol-Myers Squibb Co. | 16.56 |
| Danaher Corp. | 25.56 |
| Eli Lilly & Co. | 74.83 |
| Gilead Sciences Inc. | 27.00 |
| Johnson & Johnson | 22.67 |
| Merck & Co. Inc. | 15.25 |
| Pfizer Inc. | 18.61 |
| Regeneron Pharmaceuticals Inc. | 24.85 |
| Thermo Fisher Scientific Inc. | 22.03 |
| Vertex Pharmaceuticals Inc. | 43.50 |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 30.97 |
| P/FCFE, Industry | |
| Health Care | 28.09 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Biogen Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 146,962,793 | 152,335,731 | 174,064,011 | 196,708,784 | 211,562,686 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 3,193,000) | 5,220,400) | 6,409,100) | 5,410,900) | 2,147,300) | |
| FCFE per share3 | 21.73 | 34.27 | 36.82 | 27.51 | 10.15 | |
| Share price1, 4 | 220.17 | 263.25 | 337.24 | 333.24 | 346.00 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 10.13 | 7.68 | 9.16 | 12.11 | 34.09 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 18.76 | — | — | — | — | |
| Amgen Inc. | 13.52 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 16.17 | — | — | — | — | |
| Danaher Corp. | 20.75 | — | — | — | — | |
| Eli Lilly & Co. | 35.17 | — | — | — | — | |
| Gilead Sciences Inc. | 12.70 | — | — | — | — | |
| Johnson & Johnson | 23.28 | — | — | — | — | |
| Merck & Co. Inc. | 18.72 | — | — | — | — | |
| Pfizer Inc. | 8.88 | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 10.35 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 13.44 | — | — | — | — | |
| Vertex Pharmaceuticals Inc. | 26.08 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 16.49 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Health Care | 17.94 | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,193,000,000 ÷ 146,962,793 = 21.73
4 Closing price as at the filing date of Biogen Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 220.17 ÷ 21.73 = 10.13
6 Click competitor name to see calculations.
A significant compression in the Price to Free Cash Flow to Equity (P/FCFE) multiple is evident from 2017 to 2021. The ratio transitioned from a high valuation of 34.09 in 2017 to a period of lower multiples between 2018 and 2021, reaching a minimum of 7.68 in 2020 before a slight uptick in 2021.
- Share Price Trends
- The share price remained relatively stable through 2019, fluctuating between 333.24 and 346.00. However, a clear downward trend emerged after 2019, with the price falling to 263.25 in 2020 and further declining to 220.17 by the end of 2021.
- FCFE per Share Performance
- FCFE per share experienced rapid growth in the initial phase, rising from 10.15 in 2017 to a peak of 36.82 in 2019. Following this peak, a downward trajectory was observed, with values decreasing to 34.27 in 2020 and falling more sharply to 21.73 in 2021.
- P/FCFE Ratio Analysis
- The drastic reduction in the P/FCFE ratio from 34.09 in 2017 to 9.16 in 2019 was primarily driven by the substantial increase in FCFE per share while the share price remained flat. The ratio reached its lowest point of 7.68 in 2020, as the share price began to decline. In 2021, the ratio increased to 10.13, indicating that the decline in FCFE per share exceeded the proportional decline in the share price during that year.
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