Price to Operating Profit (P/OP)
since 2015
Calculation
Kraft Heinz Co., 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 millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2020 | 10.69 | = | 26.88 | ÷ | 2.51 | 2.51 | = | 3,070 | ÷ | 1,221,399,549 | |
| Jun 7, 2019 | — | = | 28.74 | ÷ | -8.38 | -8.38 | = | -10,220 | ÷ | 1,219,938,804 | |
| Feb 16, 2018 | 12.74 | = | 70.80 | ÷ | 5.56 | 5.56 | = | 6,773 | ÷ | 1,218,801,890 | |
| Feb 23, 2017 | 18.42 | = | 92.94 | ÷ | 5.05 | 5.05 | = | 6,142 | ÷ | 1,217,136,057 | |
| Mar 3, 2016 | 35.63 | = | 77.37 | ÷ | 2.17 | 2.17 | = | 2,639 | ÷ | 1,215,189,526 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
- Share Price Trends
- The share price experienced fluctuations over the periods analyzed. Initially, it rose from $77.37 in March 2016 to a peak of $92.94 in February 2017. Subsequently, it declined to $70.80 in February 2018, followed by a more pronounced drop to $28.74 by June 2019. By February 2020, the share price slightly decreased further to $26.88. Overall, there is a clear downward trend after 2017, indicating a significant reduction in market valuation.
- Operating Profit Per Share (OPPS) Movement
- Operating profit per share showed an upward trend from $2.17 in March 2016 to $5.56 in February 2018. However, a substantial decline is noted by June 2019, with a negative operating profit per share of -$8.38, indicating operational difficulties or extraordinary charges during this period. By February 2020, operating profit per share recovered to a positive $2.51, though still below the peak values observed in 2017 and 2018.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio decreased markedly from 35.63 in March 2016 to 18.42 in February 2017, further declining to 12.74 in February 2018. This downward movement suggests that the market price was becoming more favorable relative to operating profit at that time. Data for June 2019 is not available, likely due to the negative operating profit per share in that period. By February 2020, the P/OP ratio had decreased again to 10.69, reflecting a lower price relative to operating profit despite the recovery in operating profit per share.
- Summary of Financial Position
- The overall financial indicators reveal a volatile period with a peak in share price and operating profit per share around 2017-2018, followed by a sharp downturn in 2019. The negative operating profit in mid-2019 indicates possible operational or one-time challenges affecting profitability. Although there was some improvement in operating profit per share by early 2020, the share price continued to decline, and the valuation multiples suggest cautious investor sentiment. This pattern points to a period of instability and recovery efforts impacting investor confidence and company profitability.
Comparison to Competitors
Kraft Heinz Co., P/OP, long-term trends, comparison to competitors
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 14, 2020 | 10.69 | 24.95 | 21.87 | 19.78 | 12.92 |
| Jun 7, 2019 | — | 22.54 | 20.45 | 16.10 | 10.48 |
| Feb 16, 2018 | 12.74 | 25.05 | 17.88 | 15.15 | 13.91 |
| Feb 23, 2017 | 18.42 | 20.80 | 26.97 | 15.57 | 14.71 |
| Mar 3, 2016 | 35.63 | 21.91 | 7.02 | 16.77 | 13.31 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).