Price to FCFE (P/FCFE)
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Free Cash Flow to Equity (FCFE)
Newmont Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
The financial data over the five-year period reveals notable fluctuations in both net cash provided by operating activities and free cash flow to equity (FCFE). These changes demonstrate shifts in operational efficiency and equity-related cash management.
- Net Cash Provided by Operating Activities (in US$ millions)
-
There was a significant increase from 2,876 million at the end of 2019 to a peak of 4,890 million at the end of 2020, reflecting a substantial improvement in operational cash generation during that year. Following this peak, the figure declined to 4,266 million in 2021, then further decreased to 3,198 million in 2022. The downward trend continued into 2023, with net cash from operations falling to 2,754 million, a level below the starting point in 2019. This pattern suggests a strong top-line operational surge in 2020 followed by successive contractions in subsequent years.
- Free Cash Flow to Equity (FCFE) (in US$ millions)
-
FCFE experienced volatility that partly mirrors the operating cash flow trends but with greater magnitude and sensitivity. The value started relatively low at 172 million in 2019, surged dramatically to 3,347 million in 2020, implying significant capital returns or residual cash after operational and investment activities that year. In 2021, FCFE decreased to 2,150 million—still robust but notably lower than the previous year. The subsequent decline accelerated with FCFE dropping to 912 million in 2022 and plummeting to 21 million by the end of 2023. This sharp reduction may reflect intensified capital investments, dividend payments, debt repayments, or other equity cash outflows impacting free cash availability.
Overall, the data indicate that 2020 was an exceptional year for the company in terms of cash generation and free cash flow, possibly driven by favorable market or operational conditions. However, the last three years show a clear downward trend that could warrant further examination regarding operational challenges, capital expenditure priorities, or financial strategy adjustments. The diminishing FCFE in particular raises questions about sustainability of equity returns and cash reserves going forward.
Price to FCFE Ratio, Current
Newmont Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Freeport-McMoRan Inc. | |
| P/FCFE, Industry | |
| Materials | |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Newmont Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Freeport-McMoRan Inc. | ||||||
| P/FCFE, Industry | ||||||
| Materials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Newmont Corp. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The data reveals significant fluctuations in key financial metrics over the five-year period under review. The share price exhibited a notable upward trend from 2019 to 2021, rising from $48.10 to a peak of $66.72. However, this was followed by a sharp decline in the subsequent years, reaching $31.25 by the end of 2023. This pattern suggests initial investor optimism or strong market performance up to 2021, succeeded by a period of diminished market confidence or adverse company-specific or external factors impacting valuation.
The Free Cash Flow to Equity (FCFE) per share showed a dramatic increase in 2020, surging from a minimal $0.21 in 2019 to $4.18, indicating a substantial improvement in the company’s ability to generate cash available to equity holders that year. Following this peak, FCFE per share decreased steadily, dropping to $0.02 by 2023, which suggests a significant reduction in cash flow available for equity investors or increased capital expenditures or financial obligations impacting free cash flow generation capacity.
The Price to FCFE ratio (P/FCFE) mirrored the volatility observed in FCFE per share and share price. It decreased sharply from an extremely high 225.84 in 2019 to a much lower 13.72 in 2020, reflecting the surge in free cash flow relative to the share price. Thereafter, the ratio increased again, reaching 1715.11 by 2023. This extraordinary increase, particularly in 2023, is driven primarily by the near-zero FCFE per share combined with the declining share price, resulting in an extreme valuation multiple which may indicate a valuation concern or a market pricing in significant risks or challenges ahead.
- Overall trends and insights:
- - The share price trend suggests initial growth followed by depreciation, potentially indicating shifts in market sentiment or company performance.
- - FCFE per share growth peaked sharply in 2020, followed by a sustained decline, highlighting volatility in cash flow generation.
- - The P/FCFE ratio’s extreme fluctuations highlight the sensitivity of valuation metrics to changes in free cash flow, with particularly alarming levels by 2023 that may warrant further investigation.
- - The combination of declining share price and collapsing FCFE per share in the later years suggests operational challenges or increased financial strain impacting the company’s equity valuation and cash flow health.