Price to Operating Profit (P/OP)
since 2005
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Calculation
Cummins 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 12, 2024 | = | ÷ | = | ÷ | |||||||
| Feb 14, 2023 | = | ÷ | = | ÷ | |||||||
| Feb 8, 2022 | = | ÷ | = | ÷ | |||||||
| Feb 10, 2021 | = | ÷ | = | ÷ | |||||||
| Feb 11, 2020 | = | ÷ | = | ÷ | |||||||
| Feb 11, 2019 | = | ÷ | = | ÷ | |||||||
| Feb 14, 2018 | = | ÷ | = | ÷ | |||||||
| Feb 13, 2017 | = | ÷ | = | ÷ | |||||||
| Feb 12, 2016 | = | ÷ | = | ÷ | |||||||
| Feb 17, 2015 | = | ÷ | = | ÷ | |||||||
| Feb 18, 2014 | = | ÷ | = | ÷ | |||||||
| Feb 20, 2013 | = | ÷ | = | ÷ | |||||||
| Feb 21, 2012 | = | ÷ | = | ÷ | |||||||
| Feb 24, 2011 | = | ÷ | = | ÷ | |||||||
| Feb 26, 2010 | = | ÷ | = | ÷ | |||||||
| Feb 27, 2009 | = | ÷ | = | ÷ | |||||||
| Feb 26, 2008 | = | ÷ | = | ÷ | |||||||
| Feb 27, 2007 | = | ÷ | = | ÷ | |||||||
| Feb 28, 2006 | = | ÷ | = | ÷ |
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 Cummins Inc. Annual Report.
- Share Price
- The share price exhibited considerable volatility over the analyzed period. It began at $27.07 in 2006, rising sharply to peak at $123.30 in 2012, followed by a slight dip and fluctuations around the $140 range through 2014 and 2015. A notable decline occurred in 2016, dropping to $97.01, but this was succeeded by a general upward trajectory, reaching a new high of $256.85 by February 2024. The overall trend suggests long-term growth with intermittent volatility and corrections.
- Operating Profit per Share
- Operating profit per share (OPPS) started at $4.81 in 2006, showing a generally increasing trend with some fluctuations. After a dip to $3.39 in 2010, it rebounded significantly to a peak of $17.97 in 2020, illustrating enhanced profitability over time. However, there was a decline in the most recent year, falling to $12.41 by 2024, indicating a potential pressure on operating margins or increased costs.
- Price-to-Operating Profit (P/OP) Ratio
- The P/OP ratio demonstrated significant variability, reflecting changing market valuation relative to operating profitability. The ratio was low at 3.29 in 2009, indicating a period when the share price was low compared to operating profits. It surged to as high as 16.76 in 2010 and again reached 20.69 in 2024, pointing to higher market expectations or potentially overvaluation. Periods of lower ratios such as around 5 to 8 in earlier years contrast with spikes in valuation multiples in later years, suggesting fluctuating investor sentiment and market conditions.
- Overall Insights
- The data reveals a generally positive growth trajectory in both share price and operating profits per share, despite intermittent setbacks. The share price growth outpaced operating profit increases at times, particularly evident in the elevated P/OP ratios in recent years. The decline in operating profit per share in 2024 alongside a high P/OP ratio could indicate market optimism not fully supported by current operating performance. The analysis suggests a need to monitor profitability trends and valuation multiples closely for a balanced assessment of market expectations and underlying business performance.
Comparison to Competitors
Cummins Inc., P/OP, long-term trends, comparison to competitors
| Cummins Inc. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Feb 12, 2024 | |||||
| Feb 14, 2023 | |||||
| Feb 8, 2022 | |||||
| Feb 10, 2021 | |||||
| Feb 11, 2020 | |||||
| Feb 11, 2019 | |||||
| Feb 14, 2018 | |||||
| Feb 13, 2017 | |||||
| Feb 12, 2016 | |||||
| Feb 17, 2015 | |||||
| Feb 18, 2014 | |||||
| Feb 20, 2013 | |||||
| Feb 21, 2012 | |||||
| Feb 24, 2011 | |||||
| Feb 26, 2010 | |||||
| Feb 27, 2009 | |||||
| Feb 26, 2008 | |||||
| Feb 27, 2007 | |||||
| Feb 28, 2006 |
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).