Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Roper Technologies 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 of the company's cash flow metrics between 2018 and 2022 reveals a significant divergence between operational cash generation and the cash available to equity holders.
- Cash Provided by Operating Activities
- A period of steady growth was observed from 2018 through 2021, with cash provided by operating activities increasing from 1,430,100 thousand US$ to a peak of 1,866,200 thousand US$. This upward trend was abruptly reversed in 2022, when the figure contracted to 606,600 thousand US$, representing a substantial decline in the company's ability to generate cash from its core business operations.
- Free Cash Flow to Equity (FCFE)
- The FCFE exhibited extreme volatility over the analyzed period. Following a moderate increase from 1,137,100 thousand US$ in 2018 to 1,721,800 thousand US$ in 2019, a massive surge occurred in 2020, with FCFE reaching 5,754,200 thousand US$. This peak was followed by a sharp correction to 153,600 thousand US$ in 2021 and a transition into negative territory in 2022, ending at -737,600 thousand US$.
- Comparative Analysis of Cash Flow Dynamics
- The relationship between operating cash flows and FCFE indicates significant non-operating financial activity. The 2020 anomaly, where FCFE far exceeded operating cash flow, suggests substantial net borrowing or asset divestitures during that fiscal year. In contrast, the 2022 results show that while operating cash flow remained positive, the FCFE turned negative, indicating that capital expenditures and debt repayments significantly outweighed the cash generated from operations.
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Price to FCFE Ratio, Current
Roper Technologies Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 106,822,117 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | (737,600) |
| FCFE per share | -6.90 |
| Current share price (P) | 494.05 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | 42.25 |
| Arista Networks Inc. | 50.66 |
| Cisco Systems Inc. | 26.09 |
| Dell Technologies Inc. | 13.89 |
| Lumentum Holdings Inc. | 298.59 |
| Super Micro Computer Inc. | — |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | 46.67 |
| P/FCFE, Industry | |
| Information Technology | 71.06 |
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
Roper Technologies 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 | 106,243,275 | 105,602,835 | 104,939,597 | 106,109,664 | 103,607,782 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | (737,600) | 153,600) | 5,754,200) | 1,721,800) | 1,137,100) | |
| FCFE per share3 | -6.94 | 1.45 | 54.83 | 16.23 | 10.98 | |
| Share price1, 4 | 428.99 | 439.21 | 383.92 | 351.70 | 319.35 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | 301.96 | 7.00 | 21.67 | 29.10 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Apple Inc. | 22.26 | 23.27 | — | — | — | |
| Arista Networks Inc. | 96.72 | 42.05 | — | — | — | |
| Cisco Systems Inc. | 17.18 | 21.02 | — | — | — | |
| Dell Technologies Inc. | 33.54 | 14.15 | — | — | — | |
| Lumentum Holdings Inc. | 5.06 | 9.31 | — | — | — | |
| Super Micro Computer Inc. | 139.27 | 13.81 | — | — | — | |
| P/FCFE, Sector | ||||||
| Technology Hardware & Equipment | 22.05 | 22.76 | — | — | — | |
| P/FCFE, Industry | ||||||
| Information Technology | 26.68 | 27.39 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -737,600,000 ÷ 106,243,275 = -6.94
4 Closing price as at the filing date of Roper Technologies Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 428.99 ÷ -6.94 = —
6 Click competitor name to see calculations.
The analysis of the Price to Free Cash Flow to Equity (P/FCFE) metric reveals a period of significant volatility in the underlying cash flow figures despite a relatively steady progression in the share price.
- Share Price Performance
- The share price exhibited a consistent upward trajectory from 2018 to 2021, rising from 319.35 US$ to a peak of 439.21 US$. A marginal correction occurred in 2022, with the price concluding the period at 428.99 US$.
- FCFE per Share Volatility
- Free Cash Flow to Equity per share demonstrated extreme fluctuations. Following an initial increase from 10.98 US$ in 2018 to a peak of 54.83 US$ in 2020, the value declined precipitously to 1.45 US$ in 2021 and shifted to a negative value of -6.94 US$ by 2022.
- P/FCFE Ratio Trends
- From 2018 to 2020, the P/FCFE ratio compressed from 29.10 to 7.00, as the growth in FCFE per share significantly outpaced the increase in share price. In 2021, the ratio surged to 301.96, reflecting a severe misalignment where the share price remained high despite a collapse in equity cash flow. By December 31, 2022, the ratio became non-calculable due to the negative FCFE per share.
The observed divergence indicates that while the market valuation remained resilient, the capacity to generate free cash flow available to equity holders deteriorated sharply after 2020, culminating in a negative cash flow position by the end of the analyzed period.
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