Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Fiserv Inc., FCFE calculation
US$ in millions
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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited a generally upward trend over the analyzed period from 2017 to 2021. The cash inflow increased from $1,483 million in 2017 to $1,552 million in 2018, reflecting a modest growth. A significant rise occurred in 2019, reaching $2,795 million, followed by continued strong performance in 2020 with $4,147 million. In 2021, there was a slight decline to $4,034 million, though this value remained considerably higher than in earlier years, indicating sustained operational cash generation strength.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity demonstrated substantial variability throughout the period. Starting at $1,521 million in 2017, FCFE increased notably to $2,226 million in 2018. A remarkable surge was observed in 2019, with FCFE reaching $16,814 million, an increase that substantially exceeds prior years and suggests significant equity cash flow availability during that year. However, the figure sharply declined in 2020 to $1,204 million, reflecting a pronounced reduction in free cash flow to equity. In 2021, FCFE rebounded to $3,169 million, indicating a partial recovery but remaining well below the 2019 peak.
- Overall Analysis
- Overall, the operating cash flow exhibited consistent growth until 2020, with slight moderation in 2021, highlighting robust operational efficiency. In contrast, FCFE volatility suggests fluctuation in factors such as capital expenditures, debt issuance or repayments, and other financing activities that influence equity cash flow. The exceptional spike in 2019's FCFE warrants further investigation to understand underlying drivers. The sharp decrease in FCFE in 2020 and modest recovery in 2021 may reflect changes in investment or financing strategies influencing equity holders' free cash availability.
Price to FCFE Ratio, Current
Fiserv Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 646,394,065 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,169) |
| FCFE per share | 4.90 |
| Current share price (P) | 104.74 |
| Valuation Ratio | |
| P/FCFE | 21.36 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 18.55 |
| Adobe Inc. | 15.62 |
| Cadence Design Systems Inc. | 29.77 |
| CrowdStrike Holdings Inc. | 111.67 |
| Fair Isaac Corp. | 39.55 |
| International Business Machines Corp. | 23.05 |
| Intuit Inc. | 45.90 |
| Microsoft Corp. | 50.12 |
| Oracle Corp. | 124.49 |
| Palantir Technologies Inc. | 293.84 |
| Palo Alto Networks Inc. | 60.45 |
| Salesforce Inc. | 22.78 |
| ServiceNow Inc. | 57.58 |
| Synopsys Inc. | 71.78 |
| Workday Inc. | 27.25 |
| P/FCFE, Sector | |
| Software & Services | 59.48 |
| P/FCFE, Industry | |
| Information Technology | 56.12 |
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
Fiserv 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 | 652,196,905 | 669,459,877 | 679,098,783 | 391,586,971 | 413,215,728 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 3,169) | 1,204) | 16,814) | 2,226) | 1,521) | |
| FCFE per share3 | 4.86 | 1.80 | 24.76 | 5.68 | 3.68 | |
| Share price1, 4 | 95.56 | 115.37 | 108.54 | 84.75 | 71.06 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 19.67 | 64.15 | 4.38 | 14.91 | 19.31 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Accenture PLC | 25.76 | 19.01 | 19.50 | — | — | |
| Adobe Inc. | 34.26 | 41.36 | 41.90 | — | — | |
| Cadence Design Systems Inc. | 36.31 | 45.86 | — | — | — | |
| CrowdStrike Holdings Inc. | 41.38 | 880.68 | — | — | — | |
| Fair Isaac Corp. | 12.69 | 38.46 | 32.51 | — | — | |
| International Business Machines Corp. | 48.45 | 9.43 | — | — | — | |
| Intuit Inc. | 86.74 | 17.36 | 34.61 | — | — | |
| Microsoft Corp. | 42.54 | 42.74 | 30.77 | — | — | |
| Oracle Corp. | 8.36 | 6.27 | — | — | — | |
| Palantir Technologies Inc. | 198.12 | — | — | — | — | |
| Palo Alto Networks Inc. | 32.91 | 8.11 | 46.21 | — | — | |
| Salesforce Inc. | 49.52 | 50.40 | — | — | — | |
| ServiceNow Inc. | 64.54 | 49.83 | — | — | — | |
| Synopsys Inc. | 40.55 | 45.07 | 77.64 | — | — | |
| Workday Inc. | 40.57 | 74.21 | — | — | — | |
| P/FCFE, Sector | ||||||
| Software & Services | 33.71 | 26.75 | — | — | — | |
| P/FCFE, Industry | ||||||
| Information Technology | 27.24 | 23.37 | — | — | — | |
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
= 3,169,000,000 ÷ 652,196,905 = 4.86
4 Closing price as at the filing date of Fiserv Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 95.56 ÷ 4.86 = 19.67
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a generally upward trend from 2017 to 2020, increasing from $71.06 to $115.37. However, in 2021, there was a noticeable decline to $95.56, indicating a reversal after several years of growth.
- FCFE per Share Trend
- Free Cash Flow to Equity (FCFE) per share showed significant volatility over the analyzed period. Starting at $3.68 in 2017, it increased steadily to $5.68 in 2018 and then surged dramatically to $24.76 in 2019. This peak was followed by a sharp decrease to $1.80 in 2020, before partially recovering to $4.86 in 2021.
- P/FCFE Ratio Analysis
- The Price to FCFE ratio moved inversely relative to FCFE per share values. It decreased from 19.31 in 2017 to a low of 4.38 in 2019, corresponding with the spike in FCFE per share. Subsequently, the ratio jumped sharply to 64.15 in 2020, reflecting the steep decline in FCFE per share and a near peak share price. In 2021, the ratio normalized to 19.67, aligning more closely with levels seen in the earlier years.
- Overall Insights
- The data reflects considerable fluctuations in the company’s free cash flow to equity per share, which affected the valuation metric P/FCFE significantly. While the share price generally trended upwards until 2020, the high P/FCFE in 2020 suggests market valuation was stretched relative to cash flow performance that year. The partial recovery in FCFE per share and correction in the share price during 2021 indicate a possible market adjustment to underlying cash flow realities.