Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
AmerisourceBergen Corp., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
An analysis of the cash flow performance from September 30, 2017, to September 30, 2022, reveals a general growth trajectory in operating cash generation contrasted by significant volatility in the free cash flow to equity (FCFE).
- Net Cash Provided by Operating Activities
- Operating cash flow demonstrated a consistent upward trend over the six-year period. Starting at 1,504,138 thousand US$ in 2017, the figures reached 2,703,088 thousand US$ by 2022. While a marginal decline occurred in 2018 and 2020, the overall trajectory indicates a strengthening capacity to generate cash from core business operations, with the most substantial growth occurring between 2018 and 2019.
- Free Cash Flow to Equity (FCFE) Volatility
- FCFE exhibited considerable fluctuations compared to the steady growth of operating activities. After a low of 288,188 thousand US$ in 2017, FCFE surged to 1,696,424 thousand US$ in 2018 and remained relatively stable through 2020. A significant peak was observed in 2021, where FCFE reached 4,459,360 thousand US$, before experiencing a sharp contraction to 1,289,969 thousand US$ in 2022.
- Relationship Between Operating Cash and FCFE
- The divergence between operating cash flow and FCFE suggests varying levels of capital expenditure and net debt activity. In 2021, FCFE substantially exceeded net cash provided by operating activities, indicating a potential significant reduction in debt or a liquidation of assets. Conversely, in 2022, despite operating cash flow reaching its period high of 2,703,088 thousand US$, FCFE dropped precipitously, implying an increase in capital expenditures or a net increase in debt obligations during that fiscal year.
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Price to FCFE Ratio, Current
AmerisourceBergen Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 202,174,856 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 1,289,969) |
| FCFE per share | 6.38 |
| Current share price (P) | 191.43 |
| Valuation Ratio | |
| P/FCFE | 30.00 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | 29.96 |
| Elevance Health Inc. | 22.50 |
| Intuitive Surgical Inc. | 57.65 |
| Medtronic PLC | 26.46 |
| UnitedHealth Group Inc. | 20.23 |
| P/FCFE, Sector | |
| Health Care Equipment & Services | 14.71 |
| P/FCFE, Industry | |
| Health Care | 25.18 |
Based on: 10-K (reporting date: 2022-09-30).
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
AmerisourceBergen Corp., historical P/FCFE calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 205,668,628 | 208,133,361 | 204,249,747 | 205,922,186 | 211,933,493 | 218,082,051 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 1,289,969) | 4,459,360) | 1,820,273) | 1,902,023) | 1,696,424) | 288,188) | |
| FCFE per share3 | 6.27 | 21.43 | 8.91 | 9.24 | 8.00 | 1.32 | |
| Share price1, 4 | 164.71 | 123.66 | 101.90 | 87.81 | 88.87 | 79.46 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 26.26 | 5.77 | 11.43 | 9.51 | 11.10 | 60.13 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Abbott Laboratories | 26.11 | 24.52 | — | — | — | — | |
| Elevance Health Inc. | 14.26 | 11.07 | — | — | — | — | |
| Intuitive Surgical Inc. | 89.67 | 58.39 | — | — | — | — | |
| Medtronic PLC | 19.71 | 38.91 | — | — | — | — | |
| UnitedHealth Group Inc. | 12.57 | 20.11 | — | — | — | — | |
| P/FCFE, Sector | |||||||
| Health Care Equipment & Services | 16.47 | 22.14 | — | — | — | — | |
| P/FCFE, Industry | |||||||
| Health Care | 18.50 | 17.94 | — | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,289,969,000 ÷ 205,668,628 = 6.27
4 Closing price as at the filing date of AmerisourceBergen Corp. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 164.71 ÷ 6.27 = 26.26
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibited significant volatility between 2017 and 2022, characterized by a sharp initial decline, a period of relative stability, and a subsequent substantial increase. This fluctuation was primarily driven by erratic movements in FCFE per share rather than a linear progression in the share price.
- Share Price Trajectory
- A consistent upward trend in share price is observed over the analyzed period. The price increased from 79.46 US$ in 2017 to 164.71 US$ in 2022, representing a total growth of approximately 107%. The most pronounced acceleration occurred between 2021 and 2022, where the price rose from 123.66 US$ to 164.71 US$.
- FCFE per Share Dynamics
- Free Cash Flow to Equity per share demonstrated high variability. After a low of 1.32 US$ in 2017, values stabilized between 8.00 US$ and 9.24 US$ from 2018 through 2020. A significant peak was reached in 2021 at 21.43 US$, followed by a sharp contraction to 6.27 US$ in 2022. This volatility suggests inconsistent cash flow generation or significant fluctuations in capital expenditures and debt repayments.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio began at an anomalous high of 60.13 in 2017, a result of the disproportionately low FCFE per share relative to the stock price. From 2018 to 2020, the ratio normalized, fluctuating within a tight range between 9.51 and 11.43. The ratio reached its lowest point in 2021 at 5.77, coinciding with the peak in FCFE per share, indicating a period of maximum cash flow efficiency relative to market valuation. However, by 2022, the ratio expanded sharply to 26.26, driven by the simultaneous increase in share price and the contraction of FCFE per share.
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