Price to FCFE (P/FCFE)
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Carrier Global Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2020
- Return on Assets (ROA) since 2020
- Price to Earnings (P/E) since 2020
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Free Cash Flow to Equity (FCFE)
Carrier Global Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Cash Flows Provided by Operating Activities
- The net cash flows provided by operating activities displayed an increase from 2020 to 2021, rising from 1,692 million US dollars to 2,237 million US dollars. However, this positive trend reversed in 2022, with cash flows declining to 1,743 million US dollars. Despite the decrease in 2022, the net cash flow remained above the 2020 level, indicating a fluctuating but generally positive cash generation from operations over the three-year period.
- Free Cash Flow to Equity (FCFE)
- Free cash flow to equity exhibited a significant decline over the analyzed period. In 2020, the FCFE was notably high at 11,230 million US dollars, but this value sharply decreased to 1,342 million US dollars in 2021. The downward trajectory continued in 2022, with FCFE further decreasing to 407 million US dollars. This trend suggests a considerable reduction in the firm's capacity to generate equity cash flow, which might impact its ability to fund dividends, share buybacks, or reinvest in growth without external financing.
- Overall Financial Cash Flow Summary
- The data reveal a divergence in cash flow patterns. While operating cash flows showed resilience with a peak in 2021 and a moderate decline in 2022, the free cash flow to equity faced a dramatic and continuous decrease throughout the period. The disparity between operating cash flow and FCFE suggests increasing capital expenditures, changes in working capital, debt servicing, or other financing activities impacting equity cash flows adversely. This scenario warrants attention to understand underlying factors affecting the sustainability of cash returns to shareholders.
Price to FCFE Ratio, Current
Carrier Global Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| P/FCFE, Sector | |
| Capital Goods | |
| P/FCFE, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Carrier Global Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||
| Selected Financial Data (US$) | ||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||
| FCFE per share3 | ||||
| Share price1, 4 | ||||
| Valuation Ratio | ||||
| P/FCFE5 | ||||
| Benchmarks | ||||
| P/FCFE, Competitors6 | ||||
| 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).
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 Carrier Global Corp. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price
- The share price increased from $37.25 at the end of 2020 to $46.06 by the end of 2021, marking a significant rise. However, this upward trend slightly reversed in 2022, with the share price declining to $44.39.
- Free Cash Flow to Equity (FCFE) per Share
- There was a sharp decrease in FCFE per share over the three-year period. Starting at $12.92 in 2020, it dropped substantially to $1.57 in 2021 and further declined to $0.49 in 2022, indicating a significant reduction in cash flow available to equity shareholders.
- Price-to-FCFE (P/FCFE) Ratio
- The P/FCFE ratio exhibited a dramatic increase during the period analyzed. It rose from 2.88 in 2020 to 29.36 in 2021, before escalating to an exceptionally high 90.98 in 2022. This indicates that the share price became increasingly expensive relative to the free cash flow generated, reflecting market valuation adjustments or a significant contraction in cash flows.