Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Fidelity National Information Services Inc., 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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Net cash provided by operating activities
- The net cash provided by operating activities exhibited an overall upward trend from 2018 to 2021, increasing from 1,993 million USD in 2018 to a peak of 4,810 million USD in 2021. However, there was a noticeable decline in 2022, with net cash flows falling to 3,939 million USD. This suggests strengthening operational efficiency or profitability up to 2021, followed by a reduction in cash generation from core operations in the most recent year.
- Free cash flow to equity (FCFE)
- Free cash flow to equity displayed substantial volatility over the analyzed period. It experienced a sharp increase from 1,564 million USD in 2018 to an exceptional 10,161 million USD in 2019, representing a significant positive spike. However, this was followed by a dramatic decline to 1,941 million USD in 2020. Subsequently, FCFE increased again to 4,118 million USD in 2021 before decreasing to 3,451 million USD in 2022. These fluctuations may indicate variability in capital expenditure, working capital management, or financing activities impacting equity holders' cash flows across these years.
Price to FCFE Ratio, Current
Fidelity National Information Services Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 592,436,518 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,451) |
| FCFE per share | 5.83 |
| Current share price (P) | 53.13 |
| Valuation Ratio | |
| P/FCFE | 9.12 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 19.03 |
| Adobe Inc. | 15.96 |
| Cadence Design Systems Inc. | 29.96 |
| CrowdStrike Holdings Inc. | 113.69 |
| Fair Isaac Corp. | 40.58 |
| International Business Machines Corp. | 23.36 |
| Intuit Inc. | 45.90 |
| Microsoft Corp. | 49.93 |
| Oracle Corp. | 126.89 |
| Palantir Technologies Inc. | 294.67 |
| Palo Alto Networks Inc. | 61.96 |
| Salesforce Inc. | 23.30 |
| ServiceNow Inc. | 59.38 |
| Synopsys Inc. | 72.66 |
| Workday Inc. | 27.97 |
| P/FCFE, Sector | |
| Software & Services | 59.72 |
| P/FCFE, Industry | |
| Information Technology | 57.38 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Fidelity National Information Services Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 591,935,473 | 609,590,707 | 621,128,642 | 616,321,624 | 322,920,584 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 3,451) | 4,118) | 1,941) | 10,161) | 1,564) | |
| FCFE per share3 | 5.83 | 6.76 | 3.12 | 16.49 | 4.84 | |
| Share price1, 4 | 64.52 | 92.25 | 134.26 | 156.78 | 107.12 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 11.07 | 13.66 | 42.96 | 9.51 | 22.12 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Accenture PLC | 17.87 | 25.76 | 19.01 | 19.50 | — | |
| Adobe Inc. | 21.32 | 34.26 | 41.36 | 41.90 | — | |
| Cadence Design Systems Inc. | 33.41 | 36.31 | 45.86 | — | — | |
| CrowdStrike Holdings Inc. | 99.63 | 41.38 | 880.68 | — | — | |
| Fair Isaac Corp. | 10.12 | 12.69 | 38.46 | 32.51 | — | |
| International Business Machines Corp. | 11.97 | 48.45 | 9.43 | — | — | |
| Intuit Inc. | 13.86 | 86.74 | 17.36 | 34.61 | — | |
| Microsoft Corp. | 36.73 | 42.54 | 42.74 | 30.77 | — | |
| Oracle Corp. | — | 8.36 | 6.27 | — | — | |
| Palantir Technologies Inc. | 96.89 | 198.12 | — | — | — | |
| Palo Alto Networks Inc. | 29.54 | 32.91 | 8.11 | 46.21 | — | |
| Salesforce Inc. | 16.56 | 49.52 | 50.40 | — | — | |
| ServiceNow Inc. | 44.44 | 64.54 | 49.83 | — | — | |
| Synopsys Inc. | 33.41 | 40.55 | 45.07 | 77.64 | — | |
| Workday Inc. | 49.17 | 40.57 | 74.21 | — | — | |
| P/FCFE, Sector | ||||||
| Software & Services | 30.85 | 33.71 | 26.75 | — | — | |
| P/FCFE, Industry | ||||||
| Information Technology | 26.84 | 27.24 | 23.37 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,451,000,000 ÷ 591,935,473 = 5.83
4 Closing price as at the filing date of Fidelity National Information Services Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 64.52 ÷ 5.83 = 11.07
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited notable volatility over the examined period. Starting at $107.12 at the end of 2018, it increased significantly to a peak of $156.78 by the end of 2019. Subsequently, the price declined to $134.26 in 2020, followed by a more pronounced decrease to $92.25 in 2021, and further dropped to $64.52 by the end of 2022. This trend indicates considerable depreciation in the later years after an initial surge.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed significant fluctuations during the period. In 2018, FCFE was $4.84, then it more than tripled to $16.49 in 2019, indicating a strong improvement in cash generation available to equity shareholders. However, in 2020, this figure sharply decreased to $3.12, reflecting a decline in available cash flows. The next two years saw partial recoveries with values of $6.76 in 2021 and $5.83 in 2022, though these remained below the peak observed in 2019.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio demonstrated wide variability, mirroring the changes in share price and FCFE per share. The ratio dropped from 22.12 in 2018 to a low of 9.51 in 2019, driven by a substantial increase in FCFE per share outpacing the rise in share price. In 2020, the ratio spiked sharply to 42.96, reflecting decreased FCFE per share alongside a relatively high share price. The ratio then declined to 13.66 in 2021 and further to 11.07 in 2022, signifying a better valuation relative to FCFE compared to 2020 but still elevated compared to 2019.
- Summary of Observations
- The data reveals a period of strong cash flow growth in 2019 accompanied by a significant increase in share price. However, this was followed by a decline in both share price and FCFE per share from 2020 through 2022. The P/FCFE ratio's fluctuations suggest market valuation adjustments in response to changing cash flow dynamics. The lower share price combined with modest recovery in FCFE per share in recent years has resulted in a more reasonable valuation multiple compared to the exceptional spike observed in 2020.