Price to Operating Profit (P/OP)
since 2005
Calculation
Cintas Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 25, 2024 | 36.77 | = | 188.71 | ÷ | 5.13 | 5.13 | = | 2,068,633 | ÷ | 403,075,724 | |
| Jul 27, 2023 | 28.48 | = | 126.14 | ÷ | 4.43 | 4.43 | = | 1,802,664 | ÷ | 406,966,256 | |
| Jul 27, 2022 | 26.09 | = | 102.31 | ÷ | 3.92 | 3.92 | = | 1,587,370 | ÷ | 404,752,344 | |
| Jul 28, 2021 | 29.01 | = | 97.59 | ÷ | 3.36 | 3.36 | = | 1,385,492 | ÷ | 411,868,980 | |
| Jul 29, 2020 | 27.22 | = | 76.45 | ÷ | 2.81 | 2.81 | = | 1,162,696 | ÷ | 413,996,048 | |
| Jul 26, 2019 | 23.66 | = | 65.42 | ÷ | 2.77 | 2.77 | = | 1,133,534 | ÷ | 409,948,156 | |
| Jul 27, 2018 | 22.94 | = | 51.26 | ÷ | 2.23 | 2.23 | = | 949,834 | ÷ | 425,117,228 | |
| Jul 31, 2017 | 18.38 | = | 33.71 | ÷ | 1.83 | 1.83 | = | 773,691 | ÷ | 421,743,460 | |
| Jul 29, 2016 | 14.30 | = | 26.82 | ÷ | 1.88 | 1.88 | = | 781,748 | ÷ | 416,829,964 | |
| Jul 30, 2015 | 13.50 | = | 21.32 | ÷ | 1.58 | 1.58 | = | 696,407 | ÷ | 440,845,436 | |
| Jul 30, 2014 | 13.02 | = | 15.85 | ÷ | 1.22 | 1.22 | = | 567,010 | ÷ | 465,614,752 | |
| Jul 30, 2013 | 10.22 | = | 11.81 | ÷ | 1.16 | 1.16 | = | 565,211 | ÷ | 489,281,632 | |
| Jul 30, 2012 | 9.26 | = | 9.87 | ÷ | 1.07 | 1.07 | = | 539,627 | ÷ | 506,119,452 | |
| Jul 29, 2011 | 9.70 | = | 8.14 | ÷ | 0.84 | 0.84 | = | 440,343 | ÷ | 524,819,032 | |
| Jul 30, 2010 | 10.36 | = | 6.62 | ÷ | 0.64 | 0.64 | = | 390,809 | ÷ | 611,479,392 | |
| Jul 30, 2009 | 9.43 | = | 6.31 | ÷ | 0.67 | 0.67 | = | 409,065 | ÷ | 611,160,680 | |
| Jul 30, 2008 | 7.67 | = | 7.20 | ÷ | 0.94 | 0.94 | = | 577,455 | ÷ | 614,764,412 | |
| Jul 30, 2007 | 10.08 | = | 9.17 | ÷ | 0.91 | 0.91 | = | 577,397 | ÷ | 634,806,076 | |
| Aug 11, 2006 | 10.44 | = | 8.88 | ÷ | 0.85 | 0.85 | = | 546,838 | ÷ | 642,652,472 | |
| Aug 15, 2005 | 14.73 | = | 10.82 | ÷ | 0.73 | 0.73 | = | 494,527 | ÷ | 673,296,744 |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Cintas Corp. Annual Report.
The financial data reveals several notable trends in the company's performance and market valuation over the examined period.
- Share Price
- The share price exhibited a generally upward trajectory from 2005 through 2024. Starting at $10.82 in 2005, it experienced fluctuations in the early years, dipping to a low of $6.31 in 2009, likely reflecting broader market conditions or company-specific challenges. From 2010 onward, the share price showed consistent growth, accelerating significantly after 2017, reaching $188.71 by 2024. This strong appreciation indicates increased market confidence and a positive outlook on the company's future earnings potential.
- Operating Profit Per Share (OP)
- Operating profit per share demonstrated steady improvement across the timeframe. Beginning at $0.73 in 2005, it showed minor volatility until around 2010, with a notable low point of $0.64 in 2010. From 2011 onwards, operating profit per share rose consistently, reaching $5.13 in 2024. This upward trend suggests improving operational efficiency, revenue growth, or both, contributing positively to the company’s profitability profile.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio started relatively high at 14.73 in 2005, then declined to a low of 7.67 in 2008. This period of decreasing ratio suggests that the share price had become more favorably valued relative to the operating profit, potentially presenting a value buying opportunity during that period. However, beginning around 2010, the ratio increased steadily, peaking at 36.77 in 2024. This rising P/OP ratio indicates that the market valuation of the company has outpaced growth in operating profit per share, reflecting elevated investor expectations for future growth or other qualitative factors such as market sentiment or industry positioning.
In summary, the company experienced significant growth in both share price and operating profit per share over the nearly two-decade timeframe. The increasing P/OP ratio in later years suggests an enhanced market premium placed on the company’s earnings ability, with investors willing to pay a higher price relative to current operating profits, possibly anticipating continued strong performance or dominance within its industry. The data underscores a successful trajectory with growing profitability and expanding market valuation, tempered by higher valuation multiples in recent years.