Price to FCFE (P/FCFE)
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- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
Ecolab Inc., FCFE calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
- Cash Provided by Operating Activities
- The cash provided by operating activities demonstrates an overall positive trend from 2017 through 2021. Starting at $2,091,300 thousand in 2017, this figure increased steadily each year until 2019, reaching $2,420,700 thousand. In 2020, there was a noticeable decline to $1,741,800 thousand, indicating a potential operational challenge or external impact during that year. However, by 2021, the amount recovered to $2,061,900 thousand, showing resilience and a recovery in the company's core cash-generating operations.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity exhibits more volatility over the same period. It began at $1,689,400 thousand in 2017 and trended downward, falling to $967,500 thousand by 2019. Despite this decline, FCFE improved in 2020 to $1,396,100 thousand and then surged significantly in 2021 to $3,540,200 thousand, more than doubling the previous year's figure. This sharp increase in 2021 suggests enhanced financial flexibility and improved cash generation available to equity shareholders, which may result from better management of capital expenditures, working capital, or other financing activities.
- Summary
- Overall, the operational cash flow reveals stable and largely upward movement with a temporary setback in 2020, while FCFE shows a more pronounced decline through 2019 followed by a strong rebound culminating in a considerable increase in 2021. The trends indicate the company's capacity to generate cash from operations remained relatively robust despite fluctuations and that recent years have yielded substantial gains in cash available to equity investors. This pattern might reflect strategic financial management and favorable market or operational conditions in the latter part of the observed period.
Price to FCFE Ratio, Current
Ecolab Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Linde plc | |
| Sherwin-Williams Co. | |
| P/FCFE, Sector | |
| Chemicals | |
| P/FCFE, Industry | |
| Materials | |
Based on: 10-K (reporting date: 2021-12-31).
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
Ecolab Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| P/FCFE, Sector | ||||||
| Chemicals | ||||||
| P/FCFE, Industry | ||||||
| Materials | ||||||
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Ecolab Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price showed an overall upward trend from 2017 to 2020, increasing from $130.84 to $209.36. However, in 2021, the share price decreased to $180.30, indicating some correction after the previous rise.
- Free Cash Flow to Equity (FCFE) per Share Trend
- The FCFE per share decreased from $5.85 in 2017 to $3.36 in 2019, reflecting a decline in the company's cash-generating ability for equity holders over this period. It then recovered to $4.88 in 2020 and surged significantly to $12.35 in 2021, suggesting a substantial improvement in free cash flow available to shareholders.
- Price to FCFE Ratio (P/FCFE) Analysis
- The P/FCFE ratio exhibited high volatility. Initially, the ratio increased sharply from 22.37 in 2017 to a peak of 53.75 in 2019, indicating the market valuation was increasing faster than the FCFE per share. This was followed by a decline to 42.87 in 2020 and a further drop to 14.6 in 2021. The latter decrease aligns with the sharp increase in FCFE per share in 2021, showing the market valuation per unit of free cash flow became more conservative.
- Summary of Observations
- The period from 2017 to 2019 was characterized by rising share prices and increasing market multiples despite declining FCFE per share, potentially indicating high investor expectations. The rebound in FCFE per share in 2020 and especially in 2021 coincided with a decrease in the price multiple and share price correction, suggesting a market adjustment to improved underlying cash flow performance rather than speculative valuation growth.