Price to FCFE (P/FCFE)
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).
The analysis of cash flow movements from 2017 to 2021 reveals a decoupling between operational cash generation and the cash available to equity holders. While operating cash flow remained relatively stable with a temporary decline in 2020, free cash flow to equity (FCFE) exhibited significant volatility, ending the period with a substantial increase.
- Operating Cash Flow Trends
- Cash provided by operating activities grew steadily from 2.09 billion in 2017 to a peak of 2.42 billion in 2019. A sharp contraction occurred in 2020, where values fell to 1.74 billion, before recovering to 2.06 billion in 2021.
- FCFE Contraction and Expansion
- From 2017 to 2019, FCFE trended downward, decreasing from 1.69 billion to 967.5 million. This decline occurred despite the simultaneous increase in operating cash flow, suggesting a period of increased capital expenditures or debt repayments.
- 2021 FCFE Surge
- A significant shift is observed in 2021, where FCFE rose to 3.54 billion. This figure significantly exceeded the operating cash flow of 2.06 billion for the same period. Such a disparity indicates that the surge in cash available to equity holders was driven by non-operational factors, likely resulting from substantial net borrowing or asset divestitures.
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Price to FCFE Ratio, Current
Ecolab Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 286,751,531 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 3,540,200) |
| FCFE per share | 12.35 |
| Current share price (P) | 180.30 |
| Valuation Ratio | |
| P/FCFE | 14.60 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Linde plc | 27.63 |
| Sherwin-Williams Co. | 21.38 |
| P/FCFE, Sector | |
| Chemicals | 32.03 |
| P/FCFE, Industry | |
| Materials | 27.42 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Ecolab Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 286,751,531 | 285,849,956 | 288,166,440 | 287,853,232 | 288,858,441 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 3,540,200) | 1,396,100) | 967,500) | 1,220,800) | 1,689,400) | |
| FCFE per share3 | 12.35 | 4.88 | 3.36 | 4.24 | 5.85 | |
| Share price1, 4 | 180.30 | 209.36 | 180.45 | 170.16 | 130.84 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 14.60 | 42.87 | 53.75 | 40.12 | 22.37 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Linde plc | 24.31 | — | — | — | — | |
| Sherwin-Williams Co. | 21.76 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Chemicals | 23.44 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Materials | 19.23 | — | — | — | — | |
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
= 3,540,200,000 ÷ 286,751,531 = 12.35
4 Closing price as at the filing date of Ecolab Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 180.30 ÷ 12.35 = 14.60
6 Click competitor name to see calculations.
The analysis of valuation metrics between 2017 and 2021 reveals a distinct shift in the relationship between the market price and the free cash flow to equity (FCFE) per share.
- Share Price Trends
- The share price experienced a steady climb from 130.84 in 2017 to a peak of 209.36 in 2020, before declining to 180.30 in 2021.
- FCFE per Share Trends
- FCFE per share demonstrated a downward trend in the initial three years, falling from 5.85 in 2017 to 3.36 in 2019. This trend reversed sharply thereafter, with a moderate increase in 2020 followed by a significant surge to 12.35 in 2021.
- P/FCFE Ratio Analysis
- The P/FCFE ratio rose sharply from 22.37 in 2017 to a peak of 53.75 in 2019, indicating an expansion in the valuation multiple during a period of declining cash flows. Following 2019, the ratio entered a period of contraction, falling to 42.87 in 2020 and reaching a period low of 14.60 in 2021. This sharp decrease in the ratio is primarily attributed to the substantial increase in FCFE per share, which significantly lowered the multiple despite the share price remaining elevated relative to the 2017 baseline.
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