Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Generac Holdings 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 the annual financial data reveals notable trends in the company's cash flow performance from 2017 through 2021.
- Net Cash Provided by Operating Activities
- This metric exhibits an overall positive and upward trajectory over the five-year period. Starting at approximately $261.1 million in 2017, the figure saw a slight decline in 2018 to about $247.2 million. However, the amount rebounded in 2019 to approximately $308.9 million, followed by a substantial increase in 2020 reaching nearly $486.5 million. In 2021, there was a moderate decrease to around $411.2 million, yet the level remained significantly higher than the initial years.
- Free Cash Flow to Equity (FCFE)
- FCFE demonstrates consistent growth throughout the entire period. Beginning at approximately $96.7 million in 2017, the figure increased notably in 2018 to about $173.8 million, followed by continuous rises each subsequent year, reaching nearly $209.1 million in 2019, surging to approximately $400 million in 2020, and slightly declining to around $375.5 million in 2021. The overall trend indicates strong enhancement in the company’s ability to generate discretionary cash flows available to equity holders.
In summary, both cash flow from operating activities and FCFE show significant improvements over the period analyzed, with 2020 marking a peak year possibly reflecting enhanced operational efficiency or favorable market conditions. Although 2021 indicates a slight retreat from the peak, the figures remain substantially above the levels from earlier years, suggesting sustained robust cash generation capacity.
Price to FCFE Ratio, Current
Generac Holdings Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 63,830,918 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 375,475) |
| FCFE per share | 5.88 |
| Current share price (P) | 252.06 |
| Valuation Ratio | |
| P/FCFE | 42.85 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | — |
| Caterpillar Inc. | 19.53 |
| Eaton Corp. plc | 40.71 |
| GE Aerospace | 69.45 |
| Honeywell International Inc. | 8.75 |
| Lockheed Martin Corp. | 12.15 |
| RTX Corp. | 103.40 |
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
Generac Holdings 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 | 63,783,651 | 62,861,442 | 62,567,525 | 62,129,621 | 62,325,716 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 375,475) | 399,977) | 209,140) | 173,821) | 96,747) | |
| FCFE per share3 | 5.89 | 6.36 | 3.34 | 2.80 | 1.55 | |
| Share price1, 4 | 282.47 | 333.04 | 107.31 | 51.97 | 46.20 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 47.98 | 52.34 | 32.10 | 18.58 | 29.76 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | — | 6.78 | — | — | — | |
| Caterpillar Inc. | 16.36 | 25.22 | — | — | — | |
| Eaton Corp. plc | 24.43 | 25.59 | — | — | — | |
| GE Aerospace | — | — | — | — | — | |
| Honeywell International Inc. | 46.23 | 12.59 | — | — | — | |
| Lockheed Martin Corp. | 14.65 | 15.57 | — | — | — | |
| RTX Corp. | 35.07 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Capital Goods | — | 74.91 | — | — | — | |
| P/FCFE, Industry | ||||||
| Industrials | — | 40.69 | — | — | — | |
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
= 375,475,000 ÷ 63,783,651 = 5.89
4 Closing price as at the filing date of Generac Holdings Inc. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 282.47 ÷ 5.89 = 47.98
6 Click competitor name to see calculations.
The data presents financial metrics over a five-year span, highlighting notable changes in share price, free cash flow to equity (FCFE) per share, and the price-to-FCFE (P/FCFE) ratio.
- Share Price
- The share price demonstrated an overall upward trajectory from 2017 through 2021. Initial growth was moderate, increasing from 46.20 in 2017 to 51.97 in 2018, followed by a notable jump to 107.31 in 2019. A significant surge occurred in 2020, raising the price sharply to 333.04, which slightly declined to 282.47 in 2021. This pattern suggests heightened market enthusiasm or improved investor perception around 2020, with a mild correction thereafter.
- FCFE per Share
- Free cash flow to equity per share consistently increased over the period, indicating improving cash generation available to equity holders. Starting at 1.55 in 2017, it rose steadily each year to reach 5.89 by 2021, with the largest increments observed between 2019 and 2020. The steady growth in FCFE per share underscores strengthening operational cash performance or capital efficiency gains.
- Price-to-FCFE (P/FCFE) Ratio
- The P/FCFE ratio fluctuated significantly throughout the observed period. It declined from 29.76 in 2017 to 18.58 in 2018, suggesting the share price grew at a slower pace relative to FCFE per share or that the stock was undervalued. However, the ratio then climbed markedly, reaching 32.10 in 2019 and escalating further to 52.34 in 2020. A slight decrease to 47.98 in 2021 followed. This increase, particularly in 2020, indicates that market valuations expanded more rapidly than cash flow growth, possibly reflecting increased investor optimism or higher risk appetite during that time.
In summary, free cash flow per share growth was steady and positive, while the share price exhibited significant acceleration from 2019 to 2020, resulting in higher valuation multiples. The elevated P/FCFE ratios in the latter years signal increased investor expectations, which partially moderated in 2021 alongside a modest share price correction.