Price to Operating Profit (P/OP)
since 2008
Calculation
Keurig Dr Pepper Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income (loss) from operations1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 17.96 | = | 36.65 | ÷ | 2.04 | 2.04 | = | 2,894 | ÷ | 1,418,158,363 | |
| Feb 25, 2021 | 17.51 | = | 30.86 | ÷ | 1.76 | 1.76 | = | 2,480 | ÷ | 1,407,267,272 | |
| Feb 27, 2020 | 16.71 | = | 28.24 | ÷ | 1.69 | 1.69 | = | 2,378 | ÷ | 1,406,986,313 | |
| Feb 28, 2019 | 28.59 | = | 25.15 | ÷ | 0.88 | 0.88 | = | 1,237 | ÷ | 1,406,081,521 | |
| Feb 14, 2018 | 14.88 | = | 114.91 | ÷ | 7.72 | 7.72 | = | 1,388 | ÷ | 179,744,078 | |
| Feb 14, 2017 | 11.89 | = | 93.07 | ÷ | 7.83 | 7.83 | = | 1,433 | ÷ | 183,094,247 | |
| Feb 23, 2016 | 13.29 | = | 92.09 | ÷ | 6.93 | 6.93 | = | 1,298 | ÷ | 187,349,988 | |
| Feb 19, 2015 | 12.79 | = | 78.22 | ÷ | 6.12 | 6.12 | = | 1,180 | ÷ | 192,962,748 | |
| Feb 20, 2014 | 9.71 | = | 51.47 | ÷ | 5.30 | 5.30 | = | 1,046 | ÷ | 197,274,122 | |
| Feb 21, 2013 | 7.94 | = | 42.57 | ÷ | 5.36 | 5.36 | = | 1,092 | ÷ | 203,632,429 | |
| Feb 22, 2012 | 8.05 | = | 38.88 | ÷ | 4.83 | 4.83 | = | 1,024 | ÷ | 212,073,549 | |
| Feb 22, 2011 | 7.82 | = | 35.80 | ÷ | 4.58 | 4.58 | = | 1,025 | ÷ | 223,974,770 | |
| Mar 1, 2010 | 7.30 | = | 31.18 | ÷ | 4.27 | 4.27 | = | 1,085 | ÷ | 254,115,758 | |
| Mar 26, 2009 | — | = | 17.87 | ÷ | -0.66 | -0.66 | = | -168 | ÷ | 253,827,507 |
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), 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).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Keurig Dr Pepper Inc. Annual Report.
- Share Price Trend
- The share price exhibits a generally upward trajectory from 2009 to 2018, increasing from $17.87 to a peak of $114.91 in early 2018. This represents more than a sixfold increase over the period, indicating strong market confidence or positive expectations. However, following 2018, there is a significant decline in the share price, dropping sharply to $25.15 in early 2019, which suggests a major correction or adverse event impacting market valuation. Post-2019, the share price stabilizes at a lower range, gradually rising again to $36.65 by early 2022, but remaining well below its prior peak.
- Operating Profit Per Share (OPPS)
- Operating profit per share improves markedly from a negative figure of -$0.66 in 2009 to a positive value of $7.83 in 2017, indicating enhanced profitability at the operational level over this period. From 2017 onward, OPPS experiences a steep decline to $0.88 in 2019, reflecting a sharp reduction in operational profitability. There is a moderate recovery post-2019, with OPPS increasing steadily to $2.04 by 2022, but it remains significantly lower than the peak years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio begins at moderate levels around 7.3 in 2010 and climbs steadily to a high of 14.88 by 2017, indicating that the share price was increasingly valued relative to its operating earnings during this time. The ratio spikes dramatically to 28.59 in 2018, consistent with the share price peak, implying perhaps an overvaluation compared to operating profits. Subsequently, the P/OP ratio declines sharply to 16.71 in 2019 and remains relatively stable just under 18 through 2022, suggesting a more conservative market valuation relative to operating profitability in recent years.
- Overall Analysis
- The data reveals a period of strong growth in both share price and operating profit per share from 2009 through 2017. The alignment of rising share prices with improving profitability indicates robust operational performance and positive investor sentiment. However, the sharp fall in share price and operating profitability from 2018 to 2019, with a coincident spike in valuation multiples, indicates a significant disruption or market reassessment of the company’s financial prospects. Although there has been a moderate rebound since then, neither share price nor operating profits have returned to prior peak levels, suggesting cautious optimism but lingering challenges in the operating environment or market perception.
Comparison to Competitors
Keurig Dr Pepper Inc., P/OP, long-term trends, comparison to competitors
| Keurig Dr Pepper Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 24, 2022 | 17.96 | 26.19 | 20.00 | 20.87 | 12.90 |
| Feb 25, 2021 | 17.51 | 24.03 | 20.60 | 18.47 | 11.43 |
| Feb 27, 2020 | 16.71 | 24.95 | 21.87 | 19.78 | 12.92 |
| Feb 28, 2019 | 28.59 | 22.54 | 20.45 | 16.10 | 10.48 |
| Feb 14, 2018 | 14.88 | 25.05 | 17.88 | 15.15 | 13.91 |
| Feb 14, 2017 | 11.89 | 20.80 | 26.97 | 15.57 | 14.71 |
| Feb 23, 2016 | 13.29 | 21.91 | 7.02 | 16.77 | 13.31 |
| Feb 19, 2015 | 12.79 | 18.91 | 18.81 | 15.51 | 10.98 |
| Feb 20, 2014 | 9.71 | 16.40 | 14.48 | 12.25 | 9.26 |
| Feb 21, 2013 | 7.94 | 15.90 | 12.95 | 12.76 | 11.10 |
| Feb 22, 2012 | 8.05 | 15.42 | 10.07 | 10.32 | 10.71 |
| Feb 22, 2011 | 7.82 | 17.36 | 9.83 | 12.07 | 9.99 |
| Mar 1, 2010 | 7.30 | 14.76 | 7.72 | 12.18 | 9.18 |
| Mar 26, 2009 | — | 11.26 | 8.77 | 11.71 | 6.69 |
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), 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).