Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Stryker 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 performance from 2017 to 2021 is characterized by a general increase in operating cash flow contrasted with significant volatility in free cash flow to equity (FCFE). While net cash provided by operating activities demonstrated a steady upward trajectory, FCFE experienced substantial fluctuations, indicating shifts in financing activities or capital expenditure requirements.
- Operating Cash Flow Trends
- Net cash provided by operating activities grew from 1,559 million US dollars in 2017 to 3,263 million US dollars in 2021. A temporary contraction occurred in 2019, where cash flow dipped to 2,191 million US dollars, before recovering and stabilizing above 3,200 million US dollars in both 2020 and 2021.
- Free Cash Flow to Equity Volatility
- FCFE exhibited a non-linear trend, peaking in 2018 at 4,494 million US dollars before declining to 1,585 million US dollars by 2021. The most notable variance occurred between 2020 and 2021, where FCFE decreased by approximately 58% despite operating cash flows remaining nearly constant.
- Analysis of FCFE and Operating Cash Flow Divergence
- Between 2018 and 2020, FCFE consistently exceeded net cash provided by operating activities. This pattern suggests a reliance on net debt issuance or a significant reduction in capital expenditures during this period. Conversely, in 2017 and 2021, FCFE was lower than operating cash flow, with the 2021 gap being particularly pronounced. This indicates a shift toward substantial cash outflows, likely driven by increased capital investments or the repayment of debt obligations.
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Price to FCFE Ratio, Current
Stryker Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 378,154,080 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 1,585) |
| FCFE per share | 4.19 |
| Current share price (P) | 241.26 |
| Valuation Ratio | |
| P/FCFE | 57.56 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | 31.39 |
| Elevance Health Inc. | 24.50 |
| Intuitive Surgical Inc. | 62.86 |
| Medtronic PLC | 28.52 |
| UnitedHealth Group Inc. | 21.94 |
| P/FCFE, Sector | |
| Health Care Equipment & Services | 19.67 |
| P/FCFE, Industry | |
| Health Care | 27.24 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Stryker Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 377,544,686 | 376,200,942 | 374,575,145 | 372,664,636 | 374,642,060 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 1,585) | 3,779) | 2,835) | 4,494) | 1,260) | |
| FCFE per share3 | 4.20 | 10.05 | 7.57 | 12.06 | 3.36 | |
| Share price1, 4 | 251.65 | 245.34 | 218.24 | 180.75 | 148.01 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 59.94 | 24.42 | 28.84 | 14.99 | 44.01 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Abbott Laboratories | 24.52 | — | — | — | — | |
| Elevance Health Inc. | 11.07 | — | — | — | — | |
| Intuitive Surgical Inc. | 58.39 | — | — | — | — | |
| Medtronic PLC | 38.91 | — | — | — | — | |
| UnitedHealth Group Inc. | 20.11 | — | — | — | — | |
| P/FCFE, Sector | ||||||
| Health Care Equipment & Services | 22.14 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Health Care | 17.94 | — | — | — | — | |
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
= 1,585,000,000 ÷ 377,544,686 = 4.20
4 Closing price as at the filing date of Stryker Corp. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 251.65 ÷ 4.20 = 59.94
6 Click competitor name to see calculations.
The financial analysis between 2017 and 2021 reveals a divergence between the steady growth of the equity price and the volatility of the Free Cash Flow to Equity (FCFE) per share, leading to significant fluctuations in the P/FCFE valuation ratio.
- Share Price Performance
- A consistent upward trend is observed in the share price, which increased from 148.01 US$ in 2017 to 251.65 US$ by the end of 2021. This represents a sustained increase in market valuation throughout the analyzed period.
- FCFE per Share Volatility
- The FCFE per share exhibited substantial instability. Following a low of 3.36 US$ in 2017, a peak was reached in 2018 at 12.06 US$. Subsequent years showed inconsistent movement, with a decrease to 7.57 US$ in 2019, a recovery to 10.05 US$ in 2020, and a sharp decline to 4.20 US$ in 2021.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio demonstrated extreme variance, primarily driven by the volatility of the FCFE denominator. The ratio reached its minimum in 2018 at 14.99, coinciding with the peak in cash flow generation. In contrast, the ratio reached a five-year high of 59.94 in 2021. This spike occurred because the share price continued its ascent while the FCFE per share fell sharply, suggesting a significantly higher valuation multiple relative to the actual cash flows available to shareholders at the end of the period.
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