Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
ConocoPhillips, FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net cash provided by operating activities
- The net cash provided by operating activities exhibited significant fluctuations over the five-year period. Starting at $4,802 million in 2020, there was a remarkable increase to $16,996 million in 2021, followed by a further substantial rise to $28,314 million in 2022. However, this upward trend reversed in 2023, with the figure declining to $19,965 million and only marginally increasing to $20,124 million in 2024. Overall, the data reflect a peak in operating cash flows in 2022, succeeded by a downward adjustment in subsequent years.
- Free cash flow to equity (FCFE)
- The free cash flow to equity showed a strong growth trajectory from 2020 to 2022. Beginning at $133 million in 2020, FCFE surged to $11,167 million in 2021 and further to $14,785 million in 2022. Nevertheless, there was a noticeable decline in 2023 to $11,125 million, continuing into 2024 with a further decrease to $8,616 million. This pattern suggests that while free cash flow to equity experienced robust expansion initially, it softened in the last two years observed.
- Overall analysis
- Both operating cash flows and free cash flow to equity reveal an initial phase of strong financial performance, reaching peaks in 2022. The decline observed in 2023 and 2024 may indicate factors such as increased capital expenditures, changes in working capital, or market conditions impacting cash generation and equity returns. The divergence starting in 2023 between still relatively strong operating cash flow and diminishing FCFE could point towards heightened investments or financing activities restricting equity free cash flow despite ongoing operational cash strength.
Price to FCFE Ratio, Current
ConocoPhillips, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,248,942,311 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 8,616) |
| FCFE per share | 6.90 |
| Current share price (P) | 88.86 |
| Valuation Ratio | |
| P/FCFE | 12.88 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 14.64 |
| Exxon Mobil Corp. | 18.97 |
| P/FCFE, Sector | |
| Oil, Gas & Consumable Fuels | 16.46 |
| P/FCFE, Industry | |
| Energy | 16.13 |
Based on: 10-K (reporting date: 2024-12-31).
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
ConocoPhillips, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,272,380,205 | 1,176,408,368 | 1,218,776,494 | 1,299,526,916 | 1,354,734,727 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 8,616) | 11,125) | 14,785) | 11,167) | 133) | |
| FCFE per share3 | 6.77 | 9.46 | 12.13 | 8.59 | 0.10 | |
| Share price1, 4 | 97.45 | 111.00 | 108.36 | 91.16 | 48.85 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 14.39 | 11.74 | 8.93 | 10.61 | 497.58 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | 14.84 | 18.24 | 10.59 | 32.05 | 21.61 | |
| Exxon Mobil Corp. | 18.62 | 12.46 | 8.73 | 19.82 | 13.70 | |
| P/FCFE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 16.60 | 13.84 | 9.33 | 19.75 | 18.79 | |
| P/FCFE, Industry | ||||||
| Energy | 16.35 | 14.25 | 10.19 | 20.81 | 18.38 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 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 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,616,000,000 ÷ 1,272,380,205 = 6.77
4 Closing price as at the filing date of ConocoPhillips Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 97.45 ÷ 6.77 = 14.39
6 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends related to the share price, free cash flow to equity (FCFE) per share, and the price to FCFE ratio (P/FCFE).
- Share Price
- The share price has demonstrated a significant upward trend from 2020 to 2023, rising from $48.85 to a peak of $111. However, in 2024, there is a noticeable decline to $97.45. This indicates that while there was strong market confidence and price appreciation in the earlier years, some correction or market adjustment occurred in the most recent year.
- FCFE per Share
- FCFE per share showcases substantial growth from $0.10 in 2020 to a peak of $12.13 in 2022. Following this peak, the FCFE per share declined to $9.46 in 2023 and further to $6.77 in 2024. This pattern suggests that the company experienced a rapid improvement in cash generation capacity up to 2022, but this ability has weakened in the subsequent two years, which could indicate operational challenges or changes in capital expenditure and financing activities.
- P/FCFE Ratio
- The P/FCFE ratio exhibits a dramatic decrease from an extremely high level of 497.58 in 2020 to more normalized levels around 10.61 in 2021 and 8.93 in 2022. Afterward, the ratio rose to 11.74 in 2023 and further to 14.39 in 2024. This pattern suggests an initial undervaluation or very low FCFE per share affecting valuation multiples in 2020, followed by improved FCFE that brought the valuation to more reasonable levels. The increasing ratio in the later years might reflect investors demanding a higher price relative to FCFE, possibly due to risk perceptions increasing or FCFE declining faster than the share price adjustment.
In summary, the data reflects a company that experienced strong growth in cash flows and share price valuation until around 2022-2023, followed by a period of declining cash flow performance and some market price correction. The valuation multiples indicate a shift from highly stretched valuations tied to minimal cash flows in 2020 toward more standard levels, then a moderate increase in valuation multiples prompted by declining FCFE in the most recent years.