Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Albemarle Corp., 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 data from 2018 to 2022 reveals a period of significant volatility in cash flow generation and allocation, characterized by a sharp divergence between operational performance and the cash available to equity holders.
- Operating Cash Flow Performance
- Net cash provided by operating activities demonstrated a general upward trajectory over the five-year period, despite a notable contraction in 2021. From 2018 to 2020, operating cash flows grew steadily from 546,165 thousand USD to 798,914 thousand USD. Although this trend was interrupted in 2021 with a decline to 344,257 thousand USD, a substantial recovery occurred in 2022, with operating cash flows surging to 1,907,849 thousand USD, representing the peak for the analyzed period.
- Free Cash Flow to Equity (FCFE) Volatility
- FCFE exhibited extreme fluctuations, alternating between significant surpluses and substantial deficits. The period began with a deficit of 267,393 thousand USD in 2018, followed by a sharp increase to 1,159,387 thousand USD in 2019. A subsequent decline occurred in 2020 and 2021, culminating in a severe deficit of 1,747,119 thousand USD in 2021. The trend reversed aggressively in 2022, with FCFE returning to a positive position of 1,503,990 thousand USD.
- Analysis of Cash Flow Divergence
- A critical divergence is observed in 2021, where positive operating cash flow of 344,257 thousand USD coincided with a deeply negative FCFE of 1,747,119 thousand USD. This suggests a period of intense capital expenditure or significant debt repayment that far exceeded operational inflows. Conversely, in 2019, FCFE exceeded net cash provided by operating activities, indicating that cash inflows from financing activities or asset divestitures likely augmented the cash available to equity holders during that fiscal year.
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Price to FCFE Ratio, Current
Albemarle Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 117,336,441 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 1,503,990) |
| FCFE per share | 12.82 |
| Current share price (P) | 172.91 |
| Valuation Ratio | |
| P/FCFE | 13.49 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Linde plc | 29.91 |
| Sherwin-Williams Co. | 23.25 |
| P/FCFE, Sector | |
| Chemicals | 26.12 |
| P/FCFE, Industry | |
| Materials | 26.62 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Albemarle Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 117,197,977 | 117,036,615 | 116,632,439 | 106,206,157 | 105,753,864 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 1,503,990) | (1,747,119) | 288,235) | 1,159,387) | (267,393) | |
| FCFE per share3 | 12.83 | -14.93 | 2.47 | 10.92 | -2.53 | |
| Share price1, 4 | 272.79 | 191.85 | 156.17 | 85.65 | 92.28 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 21.26 | — | 63.19 | 7.85 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Linde plc | 16.87 | 24.31 | — | — | — | |
| Sherwin-Williams Co. | 25.90 | 21.76 | — | — | — | |
| P/FCFE, Sector | ||||||
| Chemicals | 18.49 | 23.44 | — | — | — | |
| P/FCFE, Industry | ||||||
| Materials | 18.95 | 19.23 | — | — | — | |
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
= 1,503,990,000 ÷ 117,197,977 = 12.83
4 Closing price as at the filing date of Albemarle Corp. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 272.79 ÷ 12.83 = 21.26
6 Click competitor name to see calculations.
The financial trajectory from 2018 to 2022 is characterized by a strong appreciation in equity valuation contrasted with significant volatility in Free Cash Flow to Equity (FCFE) per share.
- Share Price Appreciation
- A consistent upward trend in the share price is observed, rising from 92.28 USD in 2018 to 272.79 USD by the end of 2022. The most pronounced acceleration occurred between 2019 and 2020, where the price increased by approximately 82%.
- FCFE Per Share Volatility
- Free Cash Flow to Equity per share exhibits an unstable pattern, alternating between positive and negative territory. The values fluctuated from a deficit of -2.53 USD in 2018 to a peak of 10.92 USD in 2019, followed by a sharp decline to -14.93 USD in 2021, before recovering to 12.83 USD in 2022.
- P/FCFE Ratio Analysis
- The Price to FCFE ratio shows extreme variance and is mathematically undefined for years with negative cash flows, specifically 2018 and 2021. In 2019, the ratio was 7.85, but it surged to 63.19 in 2020. This spike resulted from the simultaneous increase in share price and a substantial contraction in FCFE per share. By 2022, the ratio moderated to 21.26 as FCFE recovered to 12.83 USD despite the share price reaching its period peak.
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