Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Marathon Oil Corp., FCFE calculation
US$ in millions
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 financial data over the five-year period displays notable fluctuations in key cash flow metrics.
- Net cash provided by operating activities
- This measure exhibited an overall upward trend from 2017 to 2021 with some variability. Starting at $1,988 million in 2017, it rose sharply to a peak of $3,234 million in 2018, followed by a slight decline to $2,749 million in 2019. A significant decrease occurred in 2020, dropping to $1,473 million, likely reflecting challenging market or operational conditions. However, the value rebounded strongly in 2021, reaching the highest level in the series at $3,239 million, indicating a recovery or improved operational cash generation capacity.
- Free cash flow to equity (FCFE)
- The FCFE figure shows considerable volatility and a generally improving trend with important fluctuations. Starting from a negative value of -$1,808 million in 2017, the company reversed to a positive figure of $481 million in 2018, suggesting improved cash flow available to equity holders after expenses and reinvestment. This positive but reduced value decreased to $197 million in 2019 and further nearly zeroed to $3 million in 2020, reflecting possible high capital expenditures or financial restructuring. In 2021, FCFE surged to $676 million, the highest point in the period, signaling stronger liquidity for equity holders and potentially enhanced financial stability.
Overall, the operational cash flow showed resilience with a pronounced dip in 2020 followed by a strong recovery in 2021. FCFE mirrored this pattern but with higher volatility, moving from significant negative cash flow to consistent positive flow in later years. This suggests an improving ability to generate distributable cash after investments and obligations, highlighting enhanced financial health heading into 2021.
Price to FCFE Ratio, Current
Marathon Oil Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 677,583,502 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 676) |
| FCFE per share | 1.00 |
| Current share price (P) | 21.47 |
| Valuation Ratio | |
| P/FCFE | 21.52 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 14.47 |
| ConocoPhillips | 13.97 |
| Exxon Mobil Corp. | 19.27 |
| Occidental Petroleum Corp. | 4.60 |
| P/FCFE, Sector | |
| Oil, Gas & Consumable Fuels | 25.61 |
| P/FCFE, Industry | |
| Energy | 26.37 |
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
Marathon Oil Corp., 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 | 730,765,163 | 789,075,988 | 795,849,999 | 818,504,459 | 849,755,866 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 676) | 3) | 197) | 481) | (1,808) | |
| FCFE per share3 | 0.93 | 0.00 | 0.25 | 0.59 | -2.13 | |
| Share price1, 4 | 21.89 | 11.16 | 10.25 | 16.68 | 15.18 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 23.66 | 2,935.36 | 41.41 | 28.38 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | 32.05 | 21.61 | — | — | — | |
| ConocoPhillips | 10.61 | 497.58 | — | — | — | |
| Exxon Mobil Corp. | 19.82 | 13.70 | — | — | — | |
| Occidental Petroleum Corp. | 66.22 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 20.45 | 20.23 | — | — | — | |
| P/FCFE, Industry | ||||||
| Energy | 21.48 | 19.69 | — | — | — | |
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
= 676,000,000 ÷ 730,765,163 = 0.93
4 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 21.89 ÷ 0.93 = 23.66
6 Click competitor name to see calculations.
- Share Price Trend
- The share price showed moderate growth from $15.18 in 2017 to $16.68 in 2018, followed by a notable decline to $10.25 in 2019. In 2020, the price stabilized slightly at $11.16 but then experienced a strong rebound to $21.89 in 2021, indicating increased market confidence or improved business conditions in the latest period.
- Free Cash Flow to Equity (FCFE) Per Share
- FCFE per share started with a negative value of -$2.13 in 2017, indicating cash outflows to equity shareholders during that year. This metric turned positive in 2018 at $0.59 and then decreased to a lower positive value of $0.25 in 2019. The FCFE per share dropped to zero in 2020, signaling a neutral cash flow position. It improved again to $0.93 in 2021, reflecting better cash generation available to equity holders.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio was not available for 2017. It was relatively high at 28.38 in 2018, indicating that the share price was valued at nearly 28 times the FCFE per share. This ratio further increased significantly to 41.41 in 2019 despite the declining FCFE per share and share price—a sign of a potential overvaluation or market uncertainty. A dramatic spike occurred in 2020, pushing the P/FCFE ratio to an extreme level of 2935.36, primarily due to the FCFE per share dropping to zero, rendering the ratio virtually meaningless as a valuation metric. In 2021, the ratio normalized substantially to 23.66, aligning more reasonably with the improved FCFE and higher share price.
- Overall Insights
- The financial data suggests volatility in both share price and free cash flow generation over the five-year period. The initial negative FCFE turning positive in 2018 aligns with the increased share price that year. The decline in share price and FCFE per share in 2019 and 2020 reflects a period of financial stress or operational challenges, with 2020 being particularly impactful as indicated by the FCFE dropping to zero. The recovery in 2021, seen in both improved share price and FCFE per share, suggests a return to more stable and potentially profitable operations. The P/FCFE ratio’s extreme spike in 2020 highlights the limitations of this ratio when FCFE per share approaches zero. Overall, the data depict a cycle of decline followed by recovery in market valuation and cash flow metrics over the observed period.