Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Marriott International Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
The financial data indicate notable fluctuations in cash flow performance over the five-year period.
- Net cash provided by operating activities
-
This metric shows a general upward trend from 2015 through 2017, increasing from 1,430 million USD to 2,436 million USD, reflecting improved cash generation from core operations during this period. However, in 2018, there is a slight decline to 2,357 million USD, followed by a more pronounced drop to 1,685 million USD in 2019. This decline suggests potential challenges in sustaining operating cash flows towards the end of the analyzed period.
- Free cash flow to equity (FCFE)
-
Free cash flow to equity exhibits more pronounced variability. Starting at 1,329 million USD in 2015, there is a substantial spike in 2016 reaching 3,824 million USD, which could be indicative of extraordinary cash inflows or reduced capital expenditures that year. Subsequently, FCFE decreases sharply to 1,722 million USD in 2017, followed by a recovery to 2,921 million USD in 2018 and a moderate decline to 2,545 million USD in 2019. These fluctuations highlight variability in free cash available to equity shareholders likely driven by changes in investment activity or financing decisions.
Overall, while operating cash flow demonstrates strength and growth in earlier years, its decline in 2019 warrants attention. The FCFE data suggest a less stable pattern with significant year-to-year changes, underscoring the importance of analyzing underlying capital expenditure and financing components to fully understand cash distribution to equity holders.
Price to FCFE Ratio, Current
Marriott International Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 324,255,928 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 2,545) |
| FCFE per share | 7.85 |
| Current share price (P) | 82.31 |
| Valuation Ratio | |
| P/FCFE | 10.49 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Airbnb Inc. | 18.49 |
| Booking Holdings Inc. | 16.50 |
| Chipotle Mexican Grill Inc. | 49.40 |
| McDonald’s Corp. | 31.65 |
| Starbucks Corp. | 30.14 |
Based on: 10-K (reporting date: 2019-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Marriott International Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 324,214,545 | 339,668,839 | 357,437,289 | 383,561,428 | 253,481,935 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 2,545) | 2,921) | 1,722) | 3,824) | 1,329) | |
| FCFE per share3 | 7.85 | 8.60 | 4.82 | 9.97 | 5.24 | |
| Share price1, 4 | 119.64 | 124.45 | 141.29 | 87.99 | 64.94 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 15.24 | 14.47 | 29.33 | 8.83 | 12.39 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | 20.35 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
3 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,545,000,000 ÷ 324,214,545 = 7.85
4 Closing price as at the filing date of Marriott International Inc. Annual Report.
5 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 119.64 ÷ 7.85 = 15.24
6 Click competitor name to see calculations.
The financial data for the periods ending from 2015 to 2019 reveal several notable trends pertaining to share price, Free Cash Flow to Equity (FCFE) per share, and the price-to-FCFE ratio.
- Share Price
- The share price experienced a significant upward trajectory from $64.94 in 2015 to a peak of $141.29 in 2017. Following this peak, there was a decline in the subsequent years, with the share price dropping to $124.45 in 2018 and further to $119.64 in 2019. This pattern indicates strong growth initially, followed by a moderate retracement.
- FCFE per Share
- FCFE per share showed considerable volatility across the observed periods. It increased sharply from $5.24 in 2015 to $9.97 in 2016. In 2017, it then declined markedly to $4.82, before recovering to $8.60 in 2018 and slightly decreasing to $7.85 in 2019. The erratic movement in FCFE per share suggests variability in the company’s free cash flow generation available to equity holders.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio fluctuated in response to changes in both share price and FCFE per share. Starting at 12.39 in 2015, it dropped to 8.83 in 2016, reflecting a rise in FCFE relative to the share price. In 2017, the ratio surged to 29.33, primarily driven by a decline in FCFE per share despite a high share price. Subsequently, the ratio decreased to 14.47 in 2018 and increased slightly to 15.24 in 2019. These variations indicate changing market valuations relative to the company’s cash flow generation.
Overall, the data suggest that while the share price initially grew robustly, it faced downward pressure in the later years. Free cash flow available to equity demonstrated inconsistency, impacting the valuation multiples. The fluctuation in the P/FCFE ratio reflects market adjustments to financial performance volatility.