Stock Analysis on Net

Yahoo! Inc. (NASDAQ:YHOO)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 9, 2017.

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

Yahoo! Inc., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 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 Yahoo! Inc. Annual Report.


Share Price Trend
The share price experienced a decline from $31.45 in March 2006 to a low of $13.23 in February 2009. Following this trough, there was a steady recovery, with the share price increasing to $46.24 by March 2017. Notably, the share price exhibited significant appreciation between 2013 and 2015, peaking at $44.28 in 2015 before a moderate drop in 2016 and a rebound in 2017.
Operating Profit Per Share (OPPS) Trend
Operating profit per share showed a general downward trend from $0.78 in 2006 to marginal levels by 2009 ($0.01). It then partially recovered, fluctuating between $0.15 and $0.66 during the period 2010 to 2013. However, after 2013, OPPS deteriorated sharply, turning negative in 2016 to -$5.02 and remaining negative at -$0.67 in 2017, indicating operational challenges and a decline in profitability in recent years.
Price to Operating Profit Ratio (P/OP)
The P/OP ratio showed considerable volatility, starting at 40.26 in 2006 and spiking dramatically to an extreme value of 1422.92 in 2009, reflecting the near-zero operating profit per share at that time. Post-2009, the ratio generally decreased, stabilizing between 22 and 66 until 2014, with a notable increase to 289.99 in 2015, coinciding with the decline in operating profit. Data for 2016 and 2017 are not available possibly due to negative or undefined operating profits.
Overall Insights
The data reflects a period of financial stress around the 2008-2009 timeframe, characterized by a steep decline in share price and operating profit per share. Subsequent recovery in share price contrasts with the operating profit per share, which experienced significant volatility and ultimately substantial declines leading into 2016 and 2017. The elevated P/OP ratios during periods of low and negative operating profits suggest market valuations outpaced fundamental earnings performance. This discrepancy indicates potential concerns about profitability despite positive market sentiment reflected in share price movements.

Comparison to Competitors

Yahoo! Inc., P/OP, long-term trends, comparison to competitors

Microsoft Excel

Based on: 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).