Price to FCFE (P/FCFE)
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- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Free Cash Flow to Equity (FCFE)
Apache Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
- Net cash provided by operating activities
- The net cash generated from operating activities experienced fluctuations over the analyzed period. Starting at a high of 9,953 million US dollars in 2011, there was a decrease to 8,504 million in 2012. A partial recovery occurred in 2013, with cash flow rising to 9,835 million, followed by another decline in 2014 to 8,379 million. The most notable drop took place in 2015, where the figure fell sharply to 2,834 million. This downward trend in the final year indicates a significant reduction in cash inflow from core business operations.
- Free cash flow to equity (FCFE)
- Free cash flow to equity exhibits considerable volatility and a noticeable deterioration over the five-year span. The value increased substantially from 2,372 million in 2011 to 4,127 million in 2012, suggesting strong cash availability for equity holders during this period. However, starting in 2013, the metric turned negative, recording -3,663 million. This negative trend persisted through 2014 (-463 million) and intensified dramatically in 2015 with a deepened negative position of -4,218 million. The persistent negative FCFE in the latter years implies challenges in generating sufficient cash flow after accounting for capital expenditures and debt servicing, which could impact equity returns adversely.
- Overall trend analysis
- The data reveals that while operating cash flow showed resilience with periods of recovery, there was a pronounced decline in 2015. More concerning is the free cash flow to equity, which transitioned from positive to sustained negative values beginning in 2013, illustrating increasing financial strain in terms of cash available to shareholders after necessary investments and obligations. This divergence between operating cash inflows and residual free cash flow suggests rising capital expenditures, debt repayments, or other financial commitments that may be limiting cash distribution to equity. The patterns indicate the need for careful scrutiny of capital allocation and financial strategy moving forward.
Price to FCFE Ratio, Current
Apache Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | |
| ConocoPhillips | |
| Exxon Mobil Corp. | |
| Occidental Petroleum Corp. | |
Based on: 10-K (reporting date: 2015-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Apache Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
3 2015 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Apache Corp. Annual Report.
5 2015 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced a notable downward trend over the five-year period. It decreased from $107.93 at the end of 2011 to $39.47 by the end of 2015. This represents a significant reduction of approximately 63%. The steepest decline occurred between 2014 and 2015, where the price fell from $65.84 to $39.47.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed considerable volatility during the period. After starting at $6.17 in 2011, it increased sharply to $10.53 in 2012, indicating strong cash flow generation relative to equity holders. However, from 2013 onward, FCFE per share turned negative and continued to deteriorate, reaching -$11.15 in 2015. This shift suggests worsening financial performance and cash flow challenges affecting equity returns.
- Price to Free Cash Flow to Equity (P/FCFE) Ratio
- The P/FCFE ratio decreased substantially in 2012 to 7, compared to 17.49 in 2011, reflecting a potential improvement in valuation based on free cash flow generation relative to price. However, the absence of P/FCFE values from 2013 onwards likely results from negative FCFE figures, which render the ratio either not meaningful or undefined. This underscores the financial difficulties indicated by negative FCFE per share in later years.
- Overall Insights
- The combined analysis of share price, FCFE per share, and the P/FCFE ratio reveals financial stress developing after 2012. The transition from positive to negative FCFE per share indicates deteriorating operational cash flows or increased capital expenditures not supported by cash inflows. Correspondingly, the declining share price and loss of P/FCFE ratio data suggest investor confidence waned as financial fundamentals weakened over the period.