Price to Operating Profit (P/OP)
since 2005
Calculation
Altria Group Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2024 | 6.25 | = | 40.90 | ÷ | 6.55 | 6.55 | = | 11,547 | ÷ | 1,763,461,775 | |
| Feb 27, 2023 | 6.97 | = | 46.54 | ÷ | 6.68 | 6.68 | = | 11,919 | ÷ | 1,785,563,827 | |
| Feb 25, 2022 | 8.09 | = | 51.48 | ÷ | 6.36 | 6.36 | = | 11,560 | ÷ | 1,817,257,322 | |
| Feb 26, 2021 | 7.45 | = | 43.60 | ÷ | 5.85 | 5.85 | = | 10,873 | ÷ | 1,858,689,654 | |
| Feb 25, 2020 | 7.65 | = | 42.49 | ÷ | 5.56 | 5.56 | = | 10,326 | ÷ | 1,858,366,804 | |
| Feb 26, 2019 | 10.71 | = | 52.10 | ÷ | 4.86 | 4.86 | = | 9,115 | ÷ | 1,874,430,847 | |
| Feb 27, 2018 | 12.73 | = | 64.00 | ÷ | 5.03 | 5.03 | = | 9,556 | ÷ | 1,900,449,362 | |
| Feb 27, 2017 | 16.51 | = | 74.59 | ÷ | 4.52 | 4.52 | = | 8,762 | ÷ | 1,939,420,437 | |
| Feb 25, 2016 | 14.61 | = | 62.38 | ÷ | 4.27 | 4.27 | = | 8,361 | ÷ | 1,957,931,815 | |
| Feb 25, 2015 | 14.38 | = | 55.64 | ÷ | 3.87 | 3.87 | = | 7,620 | ÷ | 1,969,316,914 | |
| Feb 26, 2014 | 8.74 | = | 35.44 | ÷ | 4.06 | 4.06 | = | 8,084 | ÷ | 1,992,853,529 | |
| Feb 27, 2013 | 9.44 | = | 34.07 | ÷ | 3.61 | 3.61 | = | 7,253 | ÷ | 2,009,855,261 | |
| Feb 16, 2012 | 9.96 | = | 29.54 | ÷ | 2.97 | 2.97 | = | 6,068 | ÷ | 2,045,667,279 | |
| Feb 25, 2011 | 8.38 | = | 24.94 | ÷ | 2.98 | 2.98 | = | 6,228 | ÷ | 2,091,985,586 | |
| Feb 24, 2010 | 7.72 | = | 20.26 | ÷ | 2.63 | 2.63 | = | 5,462 | ÷ | 2,080,531,691 | |
| Feb 27, 2009 | 6.53 | = | 15.44 | ÷ | 2.36 | 2.36 | = | 4,882 | ÷ | 2,066,194,006 | |
| Feb 28, 2008 | 11.75 | = | 73.78 | ÷ | 6.28 | 6.28 | = | 13,235 | ÷ | 2,108,301,037 | |
| Mar 1, 2007 | 10.16 | = | 84.34 | ÷ | 8.30 | 8.30 | = | 17,413 | ÷ | 2,098,592,159 | |
| Mar 10, 2006 | 9.29 | = | 73.86 | ÷ | 7.95 | 7.95 | = | 16,592 | ÷ | 2,086,951,179 |
Based on: 10-K (reporting date: 2023-12-31), 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 Altria Group Inc. Annual Report.
The financial trajectory from 2006 to 2024 is characterized by a significant divergence between operational profitability and market valuation. While operating profit per share has maintained a long-term upward trend, the share price and the resulting Price to operating profit (P/OP) ratio have experienced substantial volatility and a recent period of contraction.
- Operating Profit Performance
- Operating profit per share demonstrated resilience and consistent growth following a sharp decline in 2009. After hitting a low of 2.36 US$ in 2009, the metric climbed steadily for over a decade, reaching a peak of 6.68 US$ in 2023. This represents a sustained improvement in operational efficiency and earnings power per share, despite fluctuations in the broader market valuation.
- Share Price Volatility
- The share price exhibited three distinct phases. An initial high period occurred between 2006 and 2008, followed by a severe correction in 2009 where the price dropped to 15.44 US$. A subsequent recovery phase saw prices peak again in 2017 at 74.59 US$. Since 2017, a downward trend has persisted, with the price ending at 40.90 US$ in 2024.
- P/OP Ratio Analysis
- The P/OP ratio reveals a period of valuation expansion followed by a sharp compression. Between 2014 and 2017, the ratio expanded significantly, peaking at 16.51, indicating a premium valuation relative to operating profits. However, from 2018 onward, the ratio entered a consistent decline, falling to 6.25 by 2024. This suggests that the market has significantly reduced the multiple it is willing to pay for each dollar of operating profit.
- Valuation Divergence
- A notable inverse correlation is observed between 2018 and 2024. During this window, operating profit per share increased from 5.03 US$ to 6.55 US$, yet the share price decreased from 64.00 US$ to 40.90 US$. This divergence underscores a systemic compression in the P/OP multiple, moving from 12.73 in 2018 to 6.25 in 2024, indicating that operational growth has not been mirrored by market price appreciation.
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Comparison to Competitors
Altria Group Inc., P/OP, long-term trends, comparison to competitors
| Altria Group Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 27, 2024 | 6.25 | 23.14 | 18.81 | 19.23 | 11.96 |
| Feb 27, 2023 | 6.97 | 23.72 | 25.43 | 20.67 | 12.96 |
| Feb 25, 2022 | 8.09 | 26.19 | 20.00 | 20.87 | 12.90 |
| Feb 26, 2021 | 7.45 | 24.03 | 20.60 | 18.47 | 11.43 |
| Feb 25, 2020 | 7.65 | 24.95 | 21.87 | 19.78 | 12.92 |
| Feb 26, 2019 | 10.71 | 22.54 | 20.45 | 16.10 | 10.48 |
| Feb 27, 2018 | 12.73 | 25.05 | 17.88 | 15.15 | 13.91 |
| Feb 27, 2017 | 16.51 | 20.80 | 26.97 | 15.57 | 14.71 |
| Feb 25, 2016 | 14.61 | 21.91 | 7.02 | 16.77 | 13.31 |
| Feb 25, 2015 | 14.38 | 18.91 | 18.81 | 15.51 | 10.98 |
| Feb 26, 2014 | 8.74 | 16.40 | 14.48 | 12.25 | 9.26 |
| Feb 27, 2013 | 9.44 | 15.90 | 12.95 | 12.76 | 11.10 |
| Feb 16, 2012 | 9.96 | 15.42 | 10.07 | 10.32 | 10.71 |
| Feb 25, 2011 | 8.38 | 17.36 | 9.83 | 12.07 | 9.99 |
| Feb 24, 2010 | 7.72 | 14.76 | 7.72 | 12.18 | 9.18 |
| Feb 27, 2009 | 6.53 | 11.26 | 8.77 | 11.71 | 6.69 |
| Feb 28, 2008 | 11.75 | 19.05 | 11.16 | 16.02 | — |
| Mar 1, 2007 | 10.16 | 17.46 | 11.73 | 16.43 | — |
| Mar 10, 2006 | 9.29 | 16.34 | 10.73 | 16.65 | — |
Based on: 10-K (reporting date: 2023-12-31), 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).