Price to Operating Profit (P/OP)
since 2005
Calculation
Freeport-McMoRan Inc., 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 13, 2026 | 13.86 | = | 62.84 | ÷ | 4.54 | 4.54 | = | 6,518 | ÷ | 1,437,201,606 | |
| Feb 14, 2025 | 8.26 | = | 39.47 | ÷ | 4.78 | 4.78 | = | 6,864 | ÷ | 1,437,073,006 | |
| Feb 16, 2024 | 8.95 | = | 38.83 | ÷ | 4.34 | 4.34 | = | 6,225 | ÷ | 1,434,409,010 | |
| Feb 15, 2023 | 8.60 | = | 42.31 | ÷ | 4.92 | 4.92 | = | 7,037 | ÷ | 1,430,693,689 | |
| Feb 15, 2022 | 7.59 | = | 43.67 | ÷ | 5.75 | 5.75 | = | 8,366 | ÷ | 1,454,781,055 | |
| Feb 16, 2021 | 19.69 | = | 32.90 | ÷ | 1.67 | 1.67 | = | 2,437 | ÷ | 1,458,480,446 | |
| Feb 14, 2020 | 16.28 | = | 12.24 | ÷ | 0.75 | 0.75 | = | 1,091 | ÷ | 1,450,972,426 | |
| Feb 15, 2019 | 3.74 | = | 12.28 | ÷ | 3.28 | 3.28 | = | 4,754 | ÷ | 1,449,058,885 | |
| Feb 20, 2018 | 7.34 | = | 18.43 | ÷ | 2.51 | 2.51 | = | 3,633 | ÷ | 1,447,844,743 | |
| Feb 24, 2017 | — | = | 13.25 | ÷ | -1.93 | -1.93 | = | -2,792 | ÷ | 1,445,380,168 | |
| Feb 26, 2016 | — | = | 7.43 | ÷ | -10.69 | -10.69 | = | -13,382 | ÷ | 1,251,849,800 | |
| Feb 27, 2015 | 231.88 | = | 21.63 | ÷ | 0.09 | 0.09 | = | 97 | ÷ | 1,039,863,035 | |
| Feb 27, 2014 | 6.50 | = | 33.47 | ÷ | 5.15 | 5.15 | = | 5,351 | ÷ | 1,038,417,983 | |
| Feb 22, 2013 | 5.30 | = | 32.45 | ÷ | 6.12 | 6.12 | = | 5,814 | ÷ | 949,530,599 | |
| Feb 27, 2012 | 4.49 | = | 43.31 | ÷ | 9.64 | 9.64 | = | 9,140 | ÷ | 948,358,926 | |
| Feb 25, 2011 | 5.47 | = | 52.45 | ÷ | 9.58 | 9.58 | = | 9,068 | ÷ | 946,498,251 | |
| Feb 26, 2010 | 4.98 | = | 37.58 | ÷ | 7.55 | 7.55 | = | 6,503 | ÷ | 861,130,294 | |
| Feb 26, 2009 | — | = | 15.05 | ÷ | -15.44 | -15.44 | = | -12,710 | ÷ | 823,338,494 | |
| Feb 29, 2008 | 5.89 | = | 50.43 | ÷ | 8.56 | 8.56 | = | 6,555 | ÷ | 765,535,164 | |
| Feb 28, 2007 | 3.95 | = | 28.71 | ÷ | 7.28 | 7.28 | = | 2,869 | ÷ | 394,315,650 | |
| Mar 15, 2006 | 4.61 | = | 26.65 | ÷ | 5.78 | 5.78 | = | 2,177 | ÷ | 376,857,966 |
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 Freeport-McMoRan Inc. Annual Report.
The Price to Operating Profit (P/OP) ratio exhibits considerable fluctuation over the observed period, spanning from 2006 to 2026. Initial values indicate a moderate ratio, followed by a period of volatility and then a return to more stable levels. A significant outlier is present in 2015, heavily influencing the overall observed range.
- Initial Period (2006-2008)
- The P/OP ratio began at 4.61 in 2006, decreased to 3.95 in 2007, and then increased to 5.89 by 2008. This suggests a period of relative stability with a slight upward trend, potentially reflecting increasing investor confidence or expectations of future profitability.
- Volatility and Negative Earnings (2009-2016)
- The period from 2009 through 2016 demonstrates significant volatility. Operating profit per share experienced a substantial loss in 2009, resulting in an undefined P/OP ratio. The ratio recovered to approximately 5.0 in 2010, but then fluctuated considerably, including another period of negative operating profit per share in 2015, leading to an exceptionally high P/OP ratio of 231.88. The lack of a P/OP ratio in 2016 is due to negative operating profit per share.
- Stabilization and Recent Trends (2017-2026)
- From 2017 onwards, the P/OP ratio appears to stabilize within a range of approximately 7.3 to 13.9. A peak of 19.69 was observed in 2019, followed by a decrease to 7.59 in 2021. The ratio then increased again, reaching 13.86 in 2026. This suggests a period of more predictable valuation relative to operating profits, although some fluctuation remains. The ratio generally trends upward in the latter part of the period.
- Overall Observations
- The P/OP ratio is highly sensitive to changes in operating profit per share. Periods of negative or low operating profit significantly distort the ratio, making interpretation challenging. The recent trend towards stabilization suggests a more consistent relationship between price and operating performance, but continued monitoring is warranted given the historical volatility.
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