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- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
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Free Cash Flow to Equity (FCFE)
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).
The analysis of the annual cash flow data over the five-year period reveals distinct trends in both operating cash generation and free cash flow to equity (FCFE).
- Net Cash Provided by Operating Activities
- This metric shows a generally positive cash flow trend, indicating the company's core operations generated substantial cash throughout the period. Beginning at 5669 million US dollars in 2011, the net cash provided by operating activities increased to a peak of 6923 million in 2013. However, after 2013, there is a noticeable decline, with figures decreasing to 6523 million in 2014 and further to 5386 million in 2015. Despite this reduction, the values remain significant, reflecting ongoing operational cash generation.
- Free Cash Flow to Equity (FCFE)
- The FCFE exhibits considerable volatility over the same period. Starting at 4401 million US dollars in 2011, it declines sharply to 3313 million in 2012, followed by a remarkable surge to 10929 million in 2013—a more than threefold increase from the previous year. This peak suggests a significant cash flow event or change in capital structure during that year. Following the 2013 peak, FCFE drops markedly to 3370 million in 2014, but recovers moderately to 5212 million in 2015. The fluctuations in FCFE contrast with the more stable operational cash flow, implying variability in financing activities, investments, or working capital adjustments affecting cash available to equity holders.
In summary, while operating cash flows have remained strong with some decline after 2013, the free cash flow to equity has been much more volatile, indicating the company experienced significant changes in capital expenditures, debt repayments, or other financial activities impacting equity cash flows during the period under review.
Price to FCFE Ratio, Current
No. shares of common stock outstanding | |
Selected Financial Data (US$) | |
Free cash flow to equity (FCFE) (in millions) | |
FCFE per share | |
Current share price (P) | |
Valuation Ratio | |
P/FCFE | |
Benchmarks | |
P/FCFE, Competitors1 | |
Advanced Micro Devices Inc. | |
Analog Devices Inc. | |
Applied Materials Inc. | |
Broadcom Inc. | |
Intel Corp. | |
KLA Corp. | |
Lam Research Corp. | |
Micron Technology Inc. | |
NVIDIA Corp. | |
Qualcomm Inc. | |
Texas Instruments Inc. |
Based on: 10-K (reporting date: 2015-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | ||||||
Selected Financial Data (US$) | ||||||
Free cash flow to equity (FCFE) (in millions)2 | ||||||
FCFE per share3 | ||||||
Share price1, 4 | ||||||
Valuation Ratio | ||||||
P/FCFE5 | ||||||
Benchmarks | ||||||
P/FCFE, Competitors6 | ||||||
Advanced Micro Devices Inc. | ||||||
Analog Devices Inc. | ||||||
Applied Materials Inc. | ||||||
Broadcom Inc. | ||||||
Intel Corp. | ||||||
KLA Corp. | ||||||
Lam Research Corp. | ||||||
Micron Technology Inc. | ||||||
NVIDIA Corp. | ||||||
Qualcomm Inc. | ||||||
Texas Instruments Inc. |
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 EMC 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 exhibited fluctuations over the five-year period. Starting at $27.52 in 2011, it decreased to $23.28 in 2012, then increased to $25.68 in 2013. The highest point was reached in 2014 at $28.94, followed by a decline to $25.93 in 2015. Overall, the price showed variability, with no consistent upward or downward trend.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share displayed notable volatility. Beginning at $2.14 in 2011, it decreased to $1.57 in 2012, then sharply increased to $5.40 in 2013. It declined again to $1.70 in 2014, before rising moderately to $2.68 in 2015. The year 2013 marked a significant peak, indicating a substantial surge in free cash flow available to equity holders during that period.
- Price-to-FCFE Ratio (P/FCFE)
- The P/FCFE ratio showed an inverse pattern relative to FCFE per share, reflecting changes in valuation relative to free cash flow. Starting at 12.84 in 2011, the ratio increased to 14.79 in 2012, corresponding with a decrease in FCFE. It dropped significantly to 4.76 in 2013, aligning with the sharp rise in FCFE per share. The ratio then rose again to 17.07 in 2014 and decreased to 9.69 in 2015. These fluctuations suggest variable market perceptions of value and investor sentiment linked to the company’s free cash flow performance.
- Summary of Financial Ratios and Implications
- The interplay between share price, FCFE per share, and the P/FCFE ratio highlights a dynamic environment. The erratic FCFE figures contributed to swings in the valuation multiple, implying sensitivity of the company's stock price to changes in cash flow generation capability. The substantial FCFE peak in 2013 and the corresponding low P/FCFE ratio indicate a period where the market may have undervalued the company's free cash flow. Conversely, higher P/FCFE ratios in other years suggest periods where the market assigned a premium relative to free cash flow, potentially due to expectations of future growth or other factors.