Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Hess Corp., 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).
The financial trajectory between 2018 and 2022 is characterized by a significant recovery in liquidity and a fundamental shift in the cash available to equity holders.
- Net Cash Provided by Operating Activities
- A cyclical pattern is evident, with cash flow declining from 1,939 million US$ in 2018 to a period low of 1,333 million US$ in 2020. This was followed by a sharp acceleration, reaching 2,890 million US$ in 2021 and peaking at 3,944 million US$ in 2022, representing a substantial increase in operational cash generation.
- Free Cash Flow to Equity (FCFE)
- FCFE underwent a critical transition from negative values of -874 million US$ in 2018 and -615 million US$ in 2019 to positive territory starting in 2020. The metric reached a peak of 1,159 million US$ in 2021 before moderating to 938 million US$ in 2022.
- Operational and Capital Analysis
- During 2018 and 2019, the disparity between positive operating cash flows and negative FCFE indicates that capital expenditures or debt repayments exceeded the cash generated from operations. A notable pivot occurred in 2020, where FCFE turned positive despite operating cash flow reaching its lowest point in the analyzed period, suggesting a strategic reduction in capital spending. While operating cash flows continued to climb through 2022, the slight decrease in FCFE in the final year indicates a potential increase in investment activities or debt servicing relative to the growth in operating cash.
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Price to FCFE Ratio, Current
Hess Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 307,151,680 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 938) |
| FCFE per share | 3.05 |
| Current share price (P) | 147.76 |
| Valuation Ratio | |
| P/FCFE | 48.38 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 18.18 |
| ConocoPhillips | 24.06 |
| Exxon Mobil Corp. | 28.50 |
| P/FCFE, Sector | |
| Oil, Gas & Consumable Fuels | 12.99 |
| P/FCFE, Industry | |
| Energy | 13.78 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Hess Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 306,180,424 | 309,745,523 | 306,986,553 | 305,214,587 | 303,034,262 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 938) | 1,159) | 547) | (615) | (874) | |
| FCFE per share3 | 3.06 | 3.74 | 1.78 | -2.01 | -2.88 | |
| Share price1, 4 | 138.95 | 101.40 | 65.53 | 64.72 | 57.68 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 45.36 | 27.10 | 36.78 | — | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | 10.59 | 32.05 | — | — | — | |
| ConocoPhillips | 8.93 | 10.61 | — | — | — | |
| Exxon Mobil Corp. | 8.73 | 19.82 | — | — | — | |
| P/FCFE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.33 | 19.75 | — | — | — | |
| P/FCFE, Industry | ||||||
| Energy | 10.19 | 20.81 | — | — | — | |
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
= 938,000,000 ÷ 306,180,424 = 3.06
4 Closing price as at the filing date of Hess Corp. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 138.95 ÷ 3.06 = 45.36
6 Click competitor name to see calculations.
The financial trajectory between 2018 and 2022 is characterized by a transition from negative free cash flow to equity (FCFE) to a period of significant share price appreciation and positive cash generation.
- Share Price Evolution
- A consistent upward trend in share price is observed over the five-year period. Following a phase of relative stability between 2018 and 2020, the share price experienced accelerated growth, rising from 65.53 US$ in 2020 to 138.95 US$ by the end of 2022.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share was negative during 2018 and 2019, recorded at -2.88 US$ and -2.01 US$ respectively. A pivot to positive cash generation occurred in 2020 at 1.78 US$, reaching a peak of 3.74 US$ in 2021 before experiencing a slight contraction to 3.06 US$ in 2022.
- Price to FCFE (P/FCFE) Ratio Analysis
- The P/FCFE ratio was not applicable during the initial two years due to negative FCFE. Once cash flows became positive in 2020, the ratio was 36.78, subsequently compressing to 27.10 in 2021 as FCFE growth outpaced the increase in share price. A significant expansion to 45.36 occurred in 2022, resulting from a sharp increase in share price coupled with a decrease in FCFE per share, indicating a higher valuation multiple relative to the cash flows available to equity holders.
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