Price to Operating Profit (P/OP)
since 2005
Calculation
Cytokinetics Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 1, 2023 | — | = | 43.11 | ÷ | -3.41 | -3.41 | = | -324,202 | ÷ | 95,161,391 | |
| Feb 25, 2022 | — | = | 35.02 | ÷ | -2.20 | -2.20 | = | -186,313 | ÷ | 84,856,037 | |
| Feb 26, 2021 | — | = | 18.73 | ÷ | -1.32 | -1.32 | = | -93,943 | ÷ | 71,110,576 | |
| Mar 4, 2020 | — | = | 14.86 | ÷ | -1.66 | -1.66 | = | -98,867 | ÷ | 59,450,437 | |
| Mar 7, 2019 | — | = | 6.01 | ÷ | -1.62 | -1.62 | = | -88,916 | ÷ | 54,888,369 | |
| Mar 5, 2018 | — | = | 8.35 | ÷ | -2.10 | -2.10 | = | -113,396 | ÷ | 54,008,113 | |
| Mar 6, 2017 | 26.46 | = | 11.85 | ÷ | 0.45 | 0.45 | = | 18,687 | ÷ | 41,729,549 | |
| Mar 3, 2016 | — | = | 6.50 | ÷ | -0.94 | -0.94 | = | -37,407 | ÷ | 39,592,808 | |
| Mar 6, 2015 | — | = | 7.80 | ÷ | -0.38 | -0.38 | = | -14,754 | ÷ | 38,674,892 | |
| Mar 7, 2014 | — | = | 10.21 | ÷ | -0.94 | -0.94 | = | -33,894 | ÷ | 36,078,367 | |
| Mar 15, 2013 | — | = | 6.30 | ÷ | -1.68 | -1.68 | = | -40,457 | ÷ | 24,077,245 | |
| Mar 13, 2012 | — | = | 7.02 | ÷ | -3.77 | -3.77 | = | -47,964 | ÷ | 12,729,467 | |
| Mar 11, 2011 | — | = | 9.12 | ÷ | -4.45 | -4.45 | = | -49,635 | ÷ | 11,151,683 | |
| Mar 11, 2010 | 8.04 | = | 20.16 | ÷ | 2.51 | 2.51 | = | 26,095 | ÷ | 10,410,819 | |
| Mar 12, 2009 | — | = | 12.00 | ÷ | -6.66 | -6.66 | = | -59,079 | ÷ | 8,869,882 | |
| Mar 12, 2008 | — | = | 18.54 | ÷ | -6.87 | -6.87 | = | -56,487 | ÷ | 8,216,883 | |
| Mar 12, 2007 | — | = | 45.06 | ÷ | -7.86 | -7.86 | = | -61,338 | ÷ | 7,802,005 | |
| Mar 10, 2006 | — | = | 42.90 | ÷ | -7.53 | -7.53 | = | -44,633 | ÷ | 5,927,659 |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Cytokinetics Inc. Annual Report.
The financial trajectory from 2006 to 2023 is characterized by persistent operating losses and high volatility in equity valuation. While the share price has returned to levels seen nearly two decades prior, this recovery has occurred independently of operating profitability.
- Operating Profit Trends
- Operating profit per share remained negative for the majority of the analyzed period. Significant losses were recorded between 2006 and 2009, consistently exceeding 6.00 USD per share. Brief periods of positive operating profit occurred in 2010 (2.51 USD) and 2017 (0.45 USD). However, from 2018 onward, losses began to widen again, reaching 3.41 USD per share by 2023.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio is only applicable during periods of positive operating profit. In 2010, the ratio was 8.04. By 2017, the ratio increased significantly to 26.46. This indicates a substantial increase in the market's valuation multiple per unit of operating profit, despite the actual operating profit per share in 2017 being considerably lower than the profit recorded in 2010.
- Equity Valuation Patterns
- The share price experienced a prolonged decline from a peak of 45.06 USD in 2007 to a low of 6.01 USD in 2019. A sharp upward trend is observed from 2020 through 2023, with the price recovering to 43.11 USD. Notably, this recent price appreciation coincided with a trend of increasing operating losses per share, suggesting that market valuation is decoupled from current operating performance.
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Comparison to Competitors
Cytokinetics Inc., P/OP, long-term trends, comparison to competitors
| Cytokinetics Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Gilead Sciences Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|
| Mar 1, 2023 | — | 14.78 | 13.40 | 20.97 | 14.21 | 18.01 | 25.30 | 17.75 |
| Feb 25, 2022 | — | 14.21 | 16.24 | 25.14 | 7.76 | 7.55 | 21.07 | 22.35 |
| Feb 26, 2021 | — | 16.32 | 14.96 | 36.91 | 19.38 | 14.82 | 22.81 | 19.16 |
| Mar 4, 2020 | — | 10.82 | 13.84 | 34.47 | 20.66 | 19.01 | 26.84 | 51.98 |
| Mar 7, 2019 | — | 18.35 | 11.46 | 23.18 | 10.15 | 17.53 | 27.33 | 74.57 |
| Mar 5, 2018 | — | 19.63 | 12.71 | 22.48 | 7.45 | 16.71 | 28.24 | 331.55 |
| Mar 6, 2017 | 26.46 | 10.49 | 12.64 | 21.37 | 5.23 | 28.70 | 25.13 | 2,143.58 |
| Mar 3, 2016 | — | 11.61 | 13.07 | 17.27 | 5.50 | 30.74 | 22.15 | — |
| Mar 6, 2015 | — | 28.64 | 19.13 | 17.94 | 10.19 | 49.17 | 20.63 | — |
| Mar 7, 2014 | — | 14.31 | 16.19 | 16.24 | 28.54 | 42.99 | 30.40 | — |
| Mar 15, 2013 | — | 10.44 | 12.22 | 13.40 | 16.28 | 35.11 | 17.92 | 4,319.80 |
| Mar 13, 2012 | — | — | 12.48 | 14.04 | 9.02 | — | 16.64 | 69.48 |
| Mar 11, 2011 | — | — | 8.79 | 15.14 | 7.82 | — | 17.09 | — |
| Mar 11, 2010 | 8.04 | — | 10.12 | 15.63 | 12.16 | — | 19.04 | — |
| Mar 12, 2009 | — | — | 9.70 | 8.85 | 15.24 | — | 12.33 | — |
| Mar 12, 2008 | — | — | 12.44 | 13.65 | 18.80 | — | 24.03 | — |
| Mar 12, 2007 | — | — | 19.54 | 14.52 | — | — | 79.09 | — |
| Mar 10, 2006 | — | — | 17.96 | 15.18 | 25.01 | — | 21.48 | — |
Based on: 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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).