Price to Operating Profit (P/OP)
since 2005
Calculation
Anadarko Petroleum Corp., 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 17, 2017 | — | = | 66.77 | ÷ | -4.65 | -4.65 | = | -2,599 | ÷ | 558,979,551 | |
| Feb 17, 2016 | — | = | 40.50 | ÷ | -17.33 | -17.33 | = | -8,809 | ÷ | 508,438,647 | |
| Feb 20, 2015 | 8.01 | = | 85.45 | ÷ | 10.66 | 10.66 | = | 5,403 | ÷ | 506,650,285 | |
| Feb 28, 2014 | 12.72 | = | 84.16 | ÷ | 6.62 | 6.62 | = | 3,333 | ÷ | 503,767,298 | |
| Feb 19, 2013 | 11.30 | = | 84.13 | ÷ | 7.45 | 7.45 | = | 3,727 | ÷ | 500,565,966 | |
| Feb 21, 2012 | — | = | 85.74 | ÷ | -3.75 | -3.75 | = | -1,870 | ÷ | 498,427,854 | |
| Feb 23, 2011 | 22.35 | = | 79.67 | ÷ | 3.56 | 3.56 | = | 1,769 | ÷ | 496,258,104 | |
| Feb 23, 2010 | 90.39 | = | 69.18 | ÷ | 0.77 | 0.77 | = | 377 | ÷ | 492,562,381 | |
| Feb 25, 2009 | 2.65 | = | 35.54 | ÷ | 13.40 | 13.40 | = | 6,162 | ÷ | 459,881,004 | |
| Feb 29, 2008 | 4.06 | = | 63.74 | ÷ | 15.70 | 15.70 | = | 7,347 | ÷ | 468,065,186 | |
| Feb 28, 2007 | 3.82 | = | 40.29 | ÷ | 10.55 | 10.55 | = | 4,887 | ÷ | 463,098,338 | |
| Mar 3, 2006 | 5.86 | = | 51.04 | ÷ | 8.71 | 8.71 | = | 4,015 | ÷ | 460,882,446 |
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 Anadarko Petroleum Corp. Annual Report.
The analysis of the price to operating profit (P/OP) ratio reveals significant volatility closely tied to fluctuations in operating profit per share, whereas share prices exhibited a distinct pattern of movement.
- Early Performance Trends (2006–2009)
- During this period, the P/OP ratio remained relatively low and stable, decreasing from 5.86 in 2006 to 2.65 in 2009. This trend was supported by strong operating profits per share, which reached a peak of 15.70 in 2008, suggesting a valuation that was conservative relative to the operational earning power of the entity.
- Earnings Compression and Ratio Volatility (2010–2012)
- A sharp divergence is observed in 2010, where operating profit per share plummeted to 0.77 while the share price increased to 69.18. This caused the P/OP ratio to spike to an anomalous 90.39. By 2012, operating profit became negative (-3.75), rendering the P/OP ratio calculation inapplicable for that fiscal year.
- Mid-Term Stabilization (2013–2015)
- A period of recovery followed between 2013 and 2015, with operating profits returning to positive territory. The P/OP ratio normalized, fluctuating between 8.01 and 12.72. Share prices remained consistent, trading within a tight range between 84.13 and 85.45, indicating a stabilization of valuation relative to operational performance.
- Operational Decline (2016–2017)
- The final two years of the period are characterized by severe operating losses. Operating profit per share dropped sharply to -17.33 in 2016 and remained negative at -4.65 in 2017. Due to these losses, the P/OP ratio could not be determined, highlighting a total disconnect between the market share price—which dipped in 2016 before recovering in 2017—and the underlying operational profitability.
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