Price to FCFE (P/FCFE)
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Analysis of Revenues
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Free Cash Flow to Equity (FCFE)
Builders FirstSource Inc., 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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited a significant upward trend over the analyzed period. Starting at $282,830 thousand in 2018, the cash inflow nearly doubled by 2019, reaching $504,046 thousand. Although there was a decline to $260,067 thousand in 2020, this was followed by a substantial recovery with a marked increase to $1,743,549 thousand in 2021. This upward trajectory continued into 2022, closing the year at $3,599,231 thousand, representing a more than tenfold increase compared to the initial value in 2018. This pattern suggests improved operational efficiency and possibly higher revenues or better working capital management towards the end of the period.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity showed a dramatic improvement throughout the years under review. Initially negative at -$46,456 thousand in 2018, the FCFE shifted to positive territory at $102,343 thousand in 2019. The line continued to ascend, nearly quadrupling in 2020 to $445,082 thousand. The most substantial growth occurred in 2021, with FCFE reaching $2,463,141 thousand, followed by further increase to $3,293,575 thousand in 2022. This positive trajectory denotes stronger cash generation available to equity shareholders after accounting for capital expenditures and working capital changes, indicating enhanced financial strength and potential for shareholder returns.
Price to FCFE Ratio, Current
Builders FirstSource Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| P/FCFE, Sector | |
| Capital Goods | |
| P/FCFE, Industry | |
| Industrials | |
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
Builders FirstSource Inc., 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 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/FCFE, Sector | ||||||
| Capital Goods | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
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
= ÷ =
4 Closing price as at the filing date of Builders FirstSource Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits a consistent and substantial upward trajectory over the five-year period. Starting at $14.03 in 2018, it increased to $26.69 in 2019, nearly doubling. This positive momentum continued with a rise to $43.27 in 2020, followed by a further increase to $73.05 in 2021 and reaching $84.78 in 2022. The growth reflects a strong appreciation in market value, more than quintupling from 2018 to 2022.
- Free Cash Flow to Equity (FCFE) Per Share Development
- The FCFE per share shows a marked improvement over the analyzed period. Initially, in 2018, the figure was negative at -$0.40, indicating a cash outflow to equity holders. However, this reversed by 2019 to a positive $0.88 and grew steadily thereafter. By 2020, it more than doubled to $2.16, and in 2021, there was a sharp increase to $13.93. The highest value was recorded in 2022 at $23.86, representing strong growth in cash flow available for distribution to shareholders.
- Price to FCFE Ratio Analysis
- The price to FCFE ratio reveals a downward trend, which aligns with the increasing FCFE per share and rising share price. The ratio, not available for 2018 due to negative FCFE, was 30.29 in 2019, indicating that the share price was high relative to cash flow. This multiple decreased significantly to 20.07 in 2020, followed by a substantial reduction to 5.24 in 2021 and further down to 3.55 in 2022. The decreasing ratio suggests that shares became more attractively valued relative to the cash flow generated, reflecting improved financial performance or market re-rating over time.
- Overall Insights
- The combined trends suggest the company experienced significant enhancements in financial health and shareholder value. The rising share price coupled with increasing FCFE per share points to improved operational performance and cash generation capacity. Simultaneously, the decreasing P/FCFE ratio indicates a more favorable valuation from the perspective of free cash flow, potentially implying reduced risk or improved investor confidence in the sustainability of cash flows.