Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Cytokinetics 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).
The financial trajectory from 2018 to 2022 is characterized by significant volatility in liquidity metrics and a consistent reliance on non-operational funding. Operational cash flows have remained predominantly negative, indicating a persistent cash burn associated with core activities, while the fluctuations in free cash flow to equity suggest an active management of the capital structure to offset operational deficits.
- Operating Cash Flow Trends
- Net cash provided by operating activities exhibited a downward trend over the analyzed period, with the exception of a brief positive inflection in 2020. After recording a modest surplus of US$ 8.9 million in 2020, operating cash outflows accelerated sharply, reaching US$ 142.5 million in 2021 and peaking at US$ 299.5 million in 2022. This progression reflects a substantial increase in the cash required to sustain operations.
- Free Cash Flow to Equity (FCFE) Analysis
- FCFE demonstrated extreme variance, failing to maintain a consistent direction. Positive values were recorded in 2019 (US$ 42.0 million) and 2022 (US$ 21.4 million), interspersed with significant deficits, most notably in 2021 when FCFE dropped to negative US$ 191.4 million. The lack of correlation between FCFE and operating cash flow suggests that equity-available cash was driven by financing activities rather than operational profitability.
- Operational and Financing Divergence
- A critical divergence is observed in 2019 and 2022, where FCFE remained positive despite substantial negative operating cash flows. This pattern indicates that the entity likely utilized net debt issuance or equity raises to bolster the cash position available to shareholders, effectively decoupling the cash available for equity holders from the actual cash generated by business operations.
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Price to FCFE Ratio, Current
Cytokinetics Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 387,824,443 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 21,401) |
| FCFE per share | 0.06 |
| Current share price (P) | 36.32 |
| Valuation Ratio | |
| P/FCFE | 658.18 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 29.13 |
| Amgen Inc. | 102.95 |
| Bristol-Myers Squibb Co. | 16.82 |
| Danaher Corp. | 25.12 |
| Eli Lilly & Co. | 75.42 |
| Gilead Sciences Inc. | 27.11 |
| Johnson & Johnson | 22.35 |
| Merck & Co. Inc. | 15.27 |
| Pfizer Inc. | 18.92 |
| Regeneron Pharmaceuticals Inc. | 24.81 |
| Thermo Fisher Scientific Inc. | 21.47 |
| Vertex Pharmaceuticals Inc. | 43.14 |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 33.40 |
| P/FCFE, Industry | |
| Health Care | 27.97 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Cytokinetics Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 95,161,391 | 84,856,037 | 71,110,576 | 59,450,437 | 54,888,369 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 21,401) | (191,394) | (2,109) | 42,044) | (92,192) | |
| FCFE per share3 | 0.22 | -2.26 | -0.03 | 0.71 | -1.68 | |
| Share price1, 4 | 43.11 | 35.02 | 18.73 | 14.86 | 6.01 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 191.69 | — | — | 21.01 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 22.66 | 18.76 | — | — | — | |
| Amgen Inc. | 8.32 | 13.52 | — | — | — | |
| Bristol-Myers Squibb Co. | 22.85 | 16.17 | — | — | — | |
| Danaher Corp. | 32.04 | 20.75 | — | — | — | |
| Eli Lilly & Co. | 60.51 | 35.17 | — | — | — | |
| Gilead Sciences Inc. | 15.22 | 12.70 | — | — | — | |
| Johnson & Johnson | 16.73 | 23.28 | — | — | — | |
| Merck & Co. Inc. | 22.40 | 18.72 | — | — | — | |
| Pfizer Inc. | 10.56 | 8.88 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 25.12 | 10.35 | — | — | — | |
| Thermo Fisher Scientific Inc. | 27.98 | 13.44 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 19.91 | 26.08 | — | — | — | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 19.44 | 16.49 | — | — | — | |
| P/FCFE, Industry | ||||||
| Health Care | 18.50 | 17.94 | — | — | — | |
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
= 21,401,000 ÷ 95,161,391 = 0.22
4 Closing price as at the filing date of Cytokinetics Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 43.11 ÷ 0.22 = 191.69
6 Click competitor name to see calculations.
An analysis of the financial metrics between 2018 and 2022 reveals a significant divergence between equity valuation and cash flow stability. While the share price demonstrated consistent and substantial growth over the five-year period, the Free Cash Flow to Equity (FCFE) per share remained highly volatile, alternating between positive and negative values.
- Share Price Trend
- A strong upward trajectory is observed in the market valuation, with the share price increasing from 6.01 US$ in 2018 to 43.11 US$ in 2022. This represents a continuous growth pattern throughout the analyzed period.
- FCFE per Share Volatility
- The FCFE per share lacks a stable trend, exhibiting significant fluctuations. Negative values were recorded in 2018 (-1.68 US$), 2020 (-0.03 US$), and 2021 (-2.26 US$), indicating periods of cash outflow. Positive values occurred in 2019 (0.71 US$) and 2022 (0.22 US$), though the positive yield in 2022 was considerably lower than that of 2019.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio is only applicable during years of positive FCFE. In 2019, the ratio stood at 21.01. By 2022, the ratio escalated to 191.69. This dramatic increase is attributed to the combination of a sharply higher share price and a marginal positive FCFE per share, suggesting that the market valuation in 2022 was not supported by current free cash flow generation.
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