Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Altria Group Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
An analysis of the cash flow dynamics between 2019 and 2023 reveals a divergence between operational cash generation and the cash available to equity holders. While operating cash flows exhibited a generally positive trajectory, free cash flow to equity experienced a period of sustained contraction before a notable recovery in the final year of the period.
- Net Cash Provided by Operating Activities
- Operating cash flows demonstrated consistent strength, increasing from 7,837 million USD in 2019 to 9,287 million USD by 2023. The growth was relatively stable between 2020 and 2022, followed by a significant acceleration in 2023, indicating an expansion in the core cash-generating capacity of the entity.
- Free Cash Flow to Equity (FCFE) Trends
- FCFE followed a non-linear path, starting at a peak of 9,912 million USD in 2019 and declining annually to a low of 6,946 million USD in 2022. This downward trend represents a contraction of approximately 30% over three years. However, a sharp reversal occurred in 2023, with FCFE rebounding to 8,523 million USD.
- Comparative Analysis of Cash Flow Components
- The relationship between operating cash and FCFE shifted significantly over the period. In 2019, FCFE exceeded operating cash flows, implying a net inflow from financing activities, such as new debt issuance. From 2021 through 2023, the trend inverted, with FCFE remaining below operating cash flows. This suggests that capital expenditures and debt repayments began to consume a larger portion of the cash generated from operations.
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Price to FCFE Ratio, Current
Altria Group Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,694,812,982 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 8,523) |
| FCFE per share | 5.03 |
| Current share price (P) | 54.46 |
| Valuation Ratio | |
| P/FCFE | 10.83 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Coca-Cola Co. | 77.38 |
| Mondelēz International Inc. | 15.78 |
| PepsiCo Inc. | 16.28 |
| Philip Morris International Inc. | 25.39 |
| P/FCFE, Sector | |
| Food, Beverage & Tobacco | 28.12 |
| P/FCFE, Industry | |
| Consumer Staples | 39.57 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Altria Group Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,763,461,775 | 1,785,563,827 | 1,817,257,322 | 1,858,689,654 | 1,858,366,804 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 8,523) | 6,946) | 7,166) | 9,147) | 9,912) | |
| FCFE per share3 | 4.83 | 3.89 | 3.94 | 4.92 | 5.33 | |
| Share price1, 4 | 40.90 | 46.54 | 51.48 | 43.60 | 42.49 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 8.46 | 11.96 | 13.06 | 8.86 | 7.97 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Coca-Cola Co. | 22.42 | 29.91 | 23.29 | — | — | |
| Mondelēz International Inc. | — | 14.10 | 30.57 | — | — | |
| PepsiCo Inc. | 17.88 | 47.17 | 77.00 | — | — | |
| Philip Morris International Inc. | 11.93 | 6.64 | 20.46 | — | — | |
| P/FCFE, Sector | ||||||
| Food, Beverage & Tobacco | 20.54 | 16.95 | 29.54 | — | — | |
| P/FCFE, Industry | ||||||
| Consumer Staples | 24.17 | 25.27 | 24.83 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,523,000,000 ÷ 1,763,461,775 = 4.83
4 Closing price as at the filing date of Altria Group Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 40.90 ÷ 4.83 = 8.46
6 Click competitor name to see calculations.
The valuation of the company, as measured by the Price to Free Cash Flow to Equity (P/FCFE) ratio, exhibited a cycle of significant expansion and subsequent contraction between 2019 and 2023. The ratio rose from 7.97 in 2019 to a peak of 13.06 in 2021, before returning to 8.46 by the end of 2023.
- Share Price Trends
- The share price experienced a period of growth, increasing from $42.49 in 2019 to a maximum of $51.48 in 2021. This was followed by a consistent decline over the next two years, reaching $40.90 by December 31, 2023.
- FCFE per Share Performance
- Free Cash Flow to Equity per share showed a downward trajectory from 2019 through 2022, decreasing from $5.33 to a low of $3.89. A notable recovery was observed in 2023, with the value increasing to $4.83.
- P/FCFE Ratio Analysis
- The expansion of the P/FCFE ratio to its 2021 peak of 13.06 was driven by a simultaneous increase in share price and a reduction in per-share cash flow. The subsequent contraction of the ratio in 2022 and 2023 reflects a market correction, characterized by a declining share price and a restoration of FCFE per share toward historical levels.
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