Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Illumina Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
The analysis of the financial data reveals distinct trends in the company's cash flow activities over the period from 2016 to 2020.
- Net Cash Provided by Operating Activities
- This metric shows an overall upward trend, increasing from $687 million in 2016 to a peak of $1,142 million in 2018. Following this peak, there is a slight decline observed in 2019, with net cash decreasing to $1,051 million, and a marginal rebound in 2020 to $1,080 million. Despite the small fluctuations post-2018, the operating cash flow remains significantly higher than the 2016 baseline, indicating a robust capacity to generate cash from core business operations.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity exhibits more volatility compared to operating cash flow. It starts at $366 million in 2016 and nearly doubles to $561 million in 2017. The year 2018 sees a dramatic surge to $1,577 million, which is more than double the previous year's figure. However, this is followed by a sharp contraction to $292 million in 2019, representing a significant decline. In 2020, FCFE recovers to $891 million but still remains below the 2018 peak. This pattern suggests fluctuations in either investment activities, financing, or other factors affecting distributable cash to equity holders.
Overall, the operating activities show strong consistency and growth, whereas the free cash flow to equity is marked by substantial variability. The surge in 2018 for both metrics may indicate a particularly favorable year for operational and equity-related cash flow, with 2019 reflecting a correction or increased expenditure reducing free cash available to equity holders. The partial recovery in 2020 suggests a return towards stability but with residual caution due to previous volatility.
Price to FCFE Ratio, Current
Illumina Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 156,300,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 891) |
| FCFE per share | 5.70 |
| Current share price (P) | 408.14 |
| Valuation Ratio | |
| P/FCFE | 71.60 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 13.33 |
| Amgen Inc. | 26.14 |
| Bristol-Myers Squibb Co. | 3.97 |
| Danaher Corp. | 39.95 |
| Eli Lilly & Co. | 58.44 |
| Gilead Sciences Inc. | 11.78 |
| Johnson & Johnson | 12.56 |
| Merck & Co. Inc. | 9.96 |
| Pfizer Inc. | 53.92 |
| Regeneron Pharmaceuticals Inc. | 16.04 |
| Thermo Fisher Scientific Inc. | 32.93 |
| Vertex Pharmaceuticals Inc. | — |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 23.13 |
| P/FCFE, Industry | |
| Health Care | 21.82 |
Based on: 10-K (reporting date: 2020-12-31).
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
Illumina Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 145,900,000 | 147,000,000 | 147,000,000 | 147,000,000 | 146,300,000 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 891) | 292) | 1,577) | 561) | 366) | |
| FCFE per share3 | 6.11 | 1.99 | 10.73 | 3.82 | 2.50 | |
| Share price1, 4 | 494.24 | 296.00 | 292.20 | 220.44 | 164.46 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 80.93 | 149.01 | 27.24 | 57.76 | 65.66 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 13.16 | — | — | — | — | |
| Amgen Inc. | 11.06 | — | — | — | — | |
| Bristol-Myers Squibb Co. | 7.80 | — | — | — | — | |
| Danaher Corp. | 44.62 | — | — | — | — | |
| Eli Lilly & Co. | 36.62 | — | — | — | — | |
| Gilead Sciences Inc. | 5.98 | — | — | — | — | |
| Johnson & Johnson | 15.60 | — | — | — | — | |
| Merck & Co. Inc. | 17.85 | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 13.30 | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 18.58 | — | — | — | — | |
| Vertex Pharmaceuticals Inc. | 18.46 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 17.09 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Health Care | 17.25 | — | — | — | — | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Data adjusted for splits and stock dividends.
3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 891,000,000 ÷ 145,900,000 = 6.11
4 Closing price as at the filing date of Illumina Inc. Annual Report.
5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 494.24 ÷ 6.11 = 80.93
6 Click competitor name to see calculations.
- Share Price
- The share price demonstrates a consistent upward trend over the five-year period, increasing from $164.46 in 2016 to $494.24 by the end of 2020. Notably, the price nearly doubled from 2019 to 2020, indicating strong market confidence or positive developments during that year.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share fluctuates significantly across the years. It rose from $2.5 in 2016 to a peak of $10.73 in 2018, then dropped sharply to $1.99 in 2019, before partially recovering to $6.11 in 2020. This volatility suggests variability in free cash flow generation relative to equity stakeholders.
- Price-to-Free Cash Flow to Equity (P/FCFE) Ratio
- The P/FCFE ratio exhibits considerable variation, moving inversely to some extent with FCFE per share changes. It decreased from 65.66 in 2016 to a low of 27.24 in 2018 when FCFE per share peaked, implying relatively better valuation. However, the ratio surged to 149.01 in 2019 when FCFE per share dropped sharply, indicating possibly overvaluation or market skepticism. In 2020, the ratio declined to 80.93 but remained elevated compared to early years, reflecting a market pricing premium despite the recovering cash flow.