Price to Operating Profit (P/OP)
since 2005
Calculation
Caterpillar Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating profit1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 13, 2026 | 32.30 | = | 774.20 | ÷ | 23.97 | 23.97 | = | 11,151 | ÷ | 465,287,332 | |
| Feb 14, 2025 | 12.92 | = | 353.32 | ÷ | 27.35 | 27.35 | = | 13,072 | ÷ | 477,932,024 | |
| Feb 16, 2024 | 12.40 | = | 321.91 | ÷ | 25.96 | 25.96 | = | 12,966 | ÷ | 499,377,269 | |
| Feb 15, 2023 | 16.25 | = | 248.70 | ÷ | 15.31 | 15.31 | = | 7,904 | ÷ | 516,345,490 | |
| Feb 16, 2022 | 15.87 | = | 203.64 | ÷ | 12.83 | 12.83 | = | 6,878 | ÷ | 535,888,051 | |
| Feb 17, 2021 | 24.23 | = | 202.30 | ÷ | 8.35 | 8.35 | = | 4,553 | ÷ | 545,303,847 | |
| Feb 19, 2020 | 9.08 | = | 136.86 | ÷ | 15.07 | 15.07 | = | 8,290 | ÷ | 550,082,610 | |
| Feb 14, 2019 | 9.20 | = | 132.62 | ÷ | 14.41 | 14.41 | = | 8,293 | ÷ | 575,542,738 | |
| Feb 15, 2018 | 21.70 | = | 159.98 | ÷ | 7.37 | 7.37 | = | 4,406 | ÷ | 597,625,772 | |
| Feb 15, 2017 | 116.61 | = | 99.02 | ÷ | 0.85 | 0.85 | = | 498 | ÷ | 586,486,024 | |
| Feb 16, 2016 | 11.66 | = | 65.21 | ÷ | 5.59 | 5.59 | = | 3,256 | ÷ | 582,321,890 | |
| Feb 17, 2015 | 9.71 | = | 85.38 | ÷ | 8.79 | 8.79 | = | 5,328 | ÷ | 606,166,559 | |
| Feb 18, 2014 | 10.94 | = | 96.56 | ÷ | 8.82 | 8.82 | = | 5,628 | ÷ | 637,822,342 | |
| Feb 19, 2013 | 7.30 | = | 95.60 | ÷ | 13.09 | 13.09 | = | 8,573 | ÷ | 655,048,493 | |
| Feb 21, 2012 | 10.41 | = | 115.00 | ÷ | 11.05 | 11.05 | = | 7,153 | ÷ | 647,533,344 | |
| Feb 22, 2011 | 16.44 | = | 102.01 | ÷ | 6.20 | 6.20 | = | 3,963 | ÷ | 638,822,714 | |
| Feb 19, 2010 | 63.07 | = | 58.25 | ÷ | 0.92 | 0.92 | = | 577 | ÷ | 624,722,719 | |
| Feb 20, 2009 | 3.61 | = | 26.66 | ÷ | 7.39 | 7.39 | = | 4,448 | ÷ | 601,526,641 | |
| Feb 22, 2008 | 9.03 | = | 71.18 | ÷ | 7.89 | 7.89 | = | 4,921 | ÷ | 623,986,134 | |
| Feb 23, 2007 | 8.83 | = | 67.26 | ÷ | 7.62 | 7.62 | = | 4,921 | ÷ | 645,808,176 | |
| Feb 22, 2006 | 12.95 | = | 73.06 | ÷ | 5.64 | 5.64 | = | 3,784 | ÷ | 670,867,219 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 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 Caterpillar Inc. Annual Report.
The Price to Operating Profit (P/OP) ratio for the period examined exhibits considerable fluctuation. Initially, the ratio demonstrates a decline from 12.95 in 2006 to a low of 3.61 in 2009, coinciding with a period of significant share price reduction. Following this, a substantial increase is observed, peaking at 116.61 in 2017, driven by a combination of share price appreciation and a temporary decrease in operating profit per share. Subsequently, the ratio decreased, stabilizing in the range of 12.40 to 16.25 between 2018 and 2022. The most recent period shows an increase to 12.92 in 2023 and a significant jump to 32.30 in 2026.
- Initial Decline (2006-2009)
- From 2006 to 2009, the P/OP ratio decreased substantially. This decline is primarily attributable to a significant reduction in the share price, particularly in 2009, while operating profit per share remained relatively stable. This suggests a period of diminished investor confidence or broader market conditions negatively impacting valuation.
- Dramatic Increase (2009-2017)
- Between 2009 and 2017, the P/OP ratio experienced a dramatic increase. While the share price generally trended upward during this period, the most significant driver of the ratio’s increase in 2017 was a substantial decrease in operating profit per share. This indicates that investors were willing to pay a much higher premium for each dollar of operating profit, potentially reflecting expectations of future growth or a shift in market sentiment.
- Stabilization and Recent Increase (2017-2026)
- Following the peak in 2017, the P/OP ratio exhibited a period of relative stabilization, fluctuating between approximately 9 and 24. From 2018 to 2022, the ratio remained within a narrower range, suggesting a more balanced relationship between share price and operating profit. However, the ratio increased significantly in 2026, driven by a substantial increase in share price, while operating profit per share decreased slightly. This suggests renewed investor optimism or a change in market conditions.
Overall, the P/OP ratio demonstrates a sensitivity to both share price movements and changes in operating profit per share. The observed fluctuations suggest periods of both investor exuberance and caution, as well as potential shifts in the company’s fundamental performance and market expectations.
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Comparison to Competitors
Caterpillar Inc., P/OP, long-term trends, comparison to competitors
| Caterpillar Inc. | Boeing Co. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|
| Feb 13, 2026 | 32.30 | 42.88 | 18.53 | 28.67 |
| Feb 14, 2025 | 12.92 | — | 15.35 | 26.47 |
| Feb 16, 2024 | 12.40 | — | 12.49 | 34.37 |
| Feb 15, 2023 | 16.25 | — | 14.06 | 26.48 |
| Feb 16, 2022 | 15.87 | — | 11.56 | 28.68 |
| Feb 17, 2021 | 24.23 | — | 10.63 | — |
| Feb 19, 2020 | 9.08 | — | 14.49 | 15.07 |
| Feb 14, 2019 | 9.20 | 19.08 | 11.62 | 12.16 |
| Feb 15, 2018 | 21.70 | 19.69 | 16.47 | 11.53 |
| Feb 15, 2017 | 116.61 | 17.20 | 13.51 | 10.86 |
| Feb 16, 2016 | 11.66 | 10.36 | 12.17 | 9.71 |
| Feb 17, 2015 | 9.71 | 13.96 | 10.89 | 11.15 |
| Feb 18, 2014 | 10.94 | 14.75 | 11.62 | 10.88 |
| Feb 19, 2013 | 7.30 | 9.09 | 6.40 | 10.73 |
| Feb 21, 2012 | 10.41 | 9.69 | 7.21 | 9.40 |
| Feb 22, 2011 | 16.44 | 10.76 | 6.84 | 10.86 |
| Feb 19, 2010 | 63.07 | 20.91 | 6.47 | 9.67 |
| Feb 20, 2009 | 3.61 | 7.87 | 5.31 | 5.88 |
| Feb 22, 2008 | 9.03 | 11.17 | 9.48 | 9.95 |
| Feb 23, 2007 | 8.83 | 23.81 | 10.84 | 11.11 |
| Feb 22, 2006 | 12.95 | 20.69 | 10.66 | 11.11 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 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).