Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Zoetis Inc., 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).
- Net cash provided by operating activities
- The net cash provided by operating activities demonstrated an overall upward trend from 2019 to 2023, beginning at 1,795 million US dollars in 2019 and reaching 2,353 million US dollars in 2023. There was a notable increase between 2019 and 2021, peaking at 2,213 million US dollars in 2021. However, 2022 saw a decline to 1,912 million US dollars, representing a temporary decrease before recovering in 2023. This fluctuation suggests some variability in operating cash flow, although the general trajectory remains positive.
- Free cash flow to equity (FCFE)
- The free cash flow to equity exhibited significant volatility throughout the period. It more than doubled from 1,326 million US dollars in 2019 to a peak of 2,405 million US dollars in 2020. Subsequently, it sharply declined to 1,132 million US dollars in 2021, then surged again to the highest value observed, 2,666 million US dollars, in 2022. However, in 2023, FCFE drastically dropped to 272 million US dollars, indicating a severe reduction in free cash available to equity holders despite the relatively stable operating cash flow. This pronounced fluctuation might reflect changes in capital expenditures, debt servicing, or other financing activities impacting free cash flow beyond operational income.
Price to FCFE Ratio, Current
Zoetis Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 456,295,137 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 272) |
| FCFE per share | 0.60 |
| Current share price (P) | 167.23 |
| Valuation Ratio | |
| P/FCFE | 280.54 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| AbbVie Inc. | 15.81 |
| Amgen Inc. | 29.70 |
| Bristol-Myers Squibb Co. | 4.09 |
| Danaher Corp. | 43.97 |
| Eli Lilly & Co. | 78.11 |
| Gilead Sciences Inc. | 13.03 |
| Johnson & Johnson | 16.56 |
| Merck & Co. Inc. | 12.29 |
| Pfizer Inc. | 53.44 |
| Regeneron Pharmaceuticals Inc. | 21.16 |
| Thermo Fisher Scientific Inc. | 44.31 |
| Vertex Pharmaceuticals Inc. | — |
| P/FCFE, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 19.52 |
| P/FCFE, Industry | |
| Health Care | 19.75 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Zoetis Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 457,867,115 | 463,386,716 | 471,970,580 | 475,166,373 | 474,933,945 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 272) | 2,666) | 1,132) | 2,405) | 1,326) | |
| FCFE per share3 | 0.59 | 5.75 | 2.40 | 5.06 | 2.79 | |
| Share price1, 4 | 183.49 | 171.90 | 197.76 | 166.32 | 144.94 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 308.88 | 29.88 | 82.45 | 32.86 | 51.91 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| AbbVie Inc. | 17.37 | 22.66 | 18.76 | 13.16 | — | |
| Amgen Inc. | 4.71 | 8.32 | 13.52 | 11.06 | — | |
| Bristol-Myers Squibb Co. | 7.52 | 22.85 | 16.17 | 7.80 | — | |
| Danaher Corp. | 53.08 | 32.04 | 20.75 | 44.62 | — | |
| Eli Lilly & Co. | 75.06 | 60.51 | 35.17 | 36.62 | — | |
| Gilead Sciences Inc. | 12.81 | 15.22 | 12.70 | 5.98 | — | |
| Johnson & Johnson | 24.31 | 16.73 | 23.28 | 15.60 | — | |
| Merck & Co. Inc. | 24.48 | 22.40 | 18.72 | 17.85 | — | |
| Pfizer Inc. | 3.82 | 10.56 | 8.88 | — | — | |
| Regeneron Pharmaceuticals Inc. | 26.52 | 19.29 | 10.35 | 13.30 | — | |
| Thermo Fisher Scientific Inc. | 31.16 | 27.98 | 13.44 | 18.58 | — | |
| Vertex Pharmaceuticals Inc. | 33.45 | 19.91 | 26.08 | 18.46 | — | |
| P/FCFE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 16.91 | 19.28 | 16.49 | 17.09 | — | |
| P/FCFE, Industry | ||||||
| Health Care | 18.18 | 18.40 | 17.94 | 17.51 | — | |
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
= 272,000,000 ÷ 457,867,115 = 0.59
4 Closing price as at the filing date of Zoetis Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 183.49 ÷ 0.59 = 308.88
6 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend from 2019 to 2023, starting at $144.94 and increasing to $183.49. Notably, the price peaked in 2021 at $197.76, followed by a decline in 2022 to $171.90, and then a moderate recovery in 2023.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share demonstrated considerable volatility over the period. It rose substantially from $2.79 in 2019 to $5.06 in 2020, then dropped sharply to $2.40 in 2021. Recovery occurred in 2022, reaching $5.75, followed by a significant decrease to $0.59 in 2023.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio reflected considerable fluctuations, inversely related to changes in FCFE per share. Starting at a high of 51.91 in 2019, the ratio declined to 32.86 in 2020 as FCFE per share increased. It surged to 82.45 in 2021 due to the fall in FCFE, then dropped to its lowest point of 29.88 in 2022 when FCFE recovered. In 2023, the ratio escalated dramatically to 308.88, driven by the sharp decline in FCFE per share despite a rising share price.
- Summary Insights
- The financial data indicates a stock price that generally appreciated over five years but was subject to periodic corrections. FCFE per share showed significant instability, with alternating periods of growth and decline. The P/FCFE ratio mirrored this volatility, reaching extreme high levels in years when FCFE per share was low. The particularly high ratio in 2023 suggests market expectations might not be aligned with current cash flow generation capacity, indicating potential valuation concerns or anticipation of future improvements in cash flows.