Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Becton, Dickinson & Co., FCFE calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2016-09-30).
The analysis of the financial data over the six-year period reveals several notable trends in cash flow activities.
- Net cash provided by operating activities
- The net cash provided by operating activities shows a general upward trend from 2016 to 2021. Starting at $2,559 million in 2016, there is a slight dip in 2017 to $2,550 million. This is followed by consistent growth in subsequent years, reaching $4,647 million in 2021. The increase is particularly pronounced from 2019 onward, indicating improving operational cash generation efficiency or increased operational scale during this period.
- Free cash flow to equity (FCFE)
- The free cash flow to equity exhibits more volatility across the reported years. It starts at $614 million in 2016, then jumps sharply to $9,105 million in 2017, which is an outlier compared to other years. After this peak, the FCFE declines to $3,060 million in 2018, plunges further to $338 million in 2019, before rising again to $969 million in 2020 and further increasing to $3,173 million in 2021. This volatility may suggest significant changes in capital expenditures, financing activities, or other cash flow elements affecting the equity holders.
Overall, while the net operating cash flow demonstrates steady improvement, the FCFE fluctuates markedly. The data suggests a strong operational cash flow position with inconsistent equity free cash flow, potentially influenced by varying corporate investment or financing strategies during the six-year period.
Price to FCFE Ratio, Current
Becton, Dickinson & Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 285,064,629 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,173) |
| FCFE per share | 11.13 |
| Current share price (P) | 259.64 |
| Valuation Ratio | |
| P/FCFE | 23.33 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | 40.23 |
| CVS Health Corp. | 7.49 |
| Elevance Health Inc. | 7.31 |
| Intuitive Surgical Inc. | 149.68 |
| Medtronic PLC | 15.46 |
| UnitedHealth Group Inc. | 7.91 |
| P/FCFE, Sector | |
| Health Care Equipment & Services | 18.50 |
| P/FCFE, Industry | |
| Health Care | 19.33 |
Based on: 10-K (reporting date: 2021-09-30).
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
Becton, Dickinson & Co., historical P/FCFE calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 284,023,582 | 290,031,363 | 270,459,892 | 268,257,940 | 227,978,328 | 212,319,588 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 3,173) | 969) | 338) | 3,060) | 9,105) | 614) | |
| FCFE per share3 | 11.17 | 3.34 | 1.25 | 11.41 | 39.94 | 2.89 | |
| Share price1, 4 | 244.46 | 227.47 | 260.40 | 242.04 | 224.23 | 168.48 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 21.88 | 68.08 | 208.37 | 21.22 | 5.61 | 58.26 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Abbott Laboratories | 24.52 | 38.42 | — | — | — | — | |
| CVS Health Corp. | 21.23 | 11.93 | — | — | — | — | |
| Elevance Health Inc. | 11.07 | 7.75 | — | — | — | — | |
| Intuitive Surgical Inc. | 58.39 | 81.15 | — | — | — | — | |
| Medtronic PLC | 38.91 | 23.06 | — | — | — | — | |
| UnitedHealth Group Inc. | 20.11 | 13.93 | — | — | — | — | |
| P/FCFE, Sector | |||||||
| Health Care Equipment & Services | 22.03 | 17.62 | — | — | — | — | |
| P/FCFE, Industry | |||||||
| Health Care | 18.05 | 17.25 | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2016-09-30).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,173,000,000 ÷ 284,023,582 = 11.17
4 Closing price as at the filing date of Becton, Dickinson & Co. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 244.46 ÷ 11.17 = 21.88
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a general upward trend from 2016 through 2019, increasing from $168.48 to $260.40. However, in 2020, it declined to $227.47 before partially recovering in 2021 to $244.46. The overall movement indicates periods of growth followed by a moderate decline and subsequent stabilization.
- FCFE per Share Trend
- FCFE per share displayed significant volatility over the period. It peaked notably in 2017 at $39.94, after which it declined sharply to $11.41 in 2018 and further dropped to $1.25 in 2019. There was a recovery beginning in 2020, with FCFE per share increasing to $3.34 and then to $11.17 in 2021. The pattern suggests fluctuating free cash flow generation with a substantial dip around 2019 and gradual improvement thereafter.
- P/FCFE Ratio Trend
- The price-to-free-cash-flow-to-equity ratio demonstrated considerable variability. It was relatively high at 58.26 in 2016, dropped sharply to 5.61 in 2017, and rose to 21.22 in 2018. In 2019, the ratio peaked dramatically at 208.37, reflecting either a significant fall in FCFE or relatively high share prices relative to FCFE. The ratio then fell again to 68.08 in 2020 and further to 21.88 in 2021. These fluctuations highlight variability in market valuation relative to free cash flow.
- Overall Insights
- The data indicates a period of strong but volatile free cash flow performance with significant swings in both the FCFE per share and the P/FCFE ratio. The share price showed growth tempered by a decline in 2020, possibly reflecting external market factors or company-specific events. The extremely high P/FCFE ratio in 2019 suggests an anomaly or external pressures influencing either earnings or valuation. Subsequent recovery in cash flows and normalization of valuation ratios in 2020 and 2021 suggest improving operational performance and/or market confidence.