Price to Operating Profit (P/OP)
since 2005
Calculation
General Dynamics Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating earnings1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2020 | 11.61 | = | 186.25 | ÷ | 16.05 | 16.05 | = | 4,648 | ÷ | 289,627,333 | |
| Feb 13, 2019 | 11.22 | = | 173.48 | ÷ | 15.46 | 15.46 | = | 4,457 | ÷ | 288,235,928 | |
| Feb 12, 2018 | 14.90 | = | 209.53 | ÷ | 14.07 | 14.07 | = | 4,177 | ÷ | 296,933,621 | |
| Feb 6, 2017 | 12.86 | = | 183.04 | ÷ | 14.23 | 14.23 | = | 4,309 | ÷ | 302,742,234 | |
| Feb 8, 2016 | 9.85 | = | 132.26 | ÷ | 13.43 | 13.43 | = | 4,178 | ÷ | 311,161,810 | |
| Feb 9, 2015 | 11.68 | = | 136.94 | ÷ | 11.72 | 11.72 | = | 3,889 | ÷ | 331,704,599 | |
| Feb 7, 2014 | 9.68 | = | 104.19 | ÷ | 10.77 | 10.77 | = | 3,685 | ÷ | 342,250,398 | |
| Feb 8, 2013 | 28.35 | = | 66.82 | ÷ | 2.36 | 2.36 | = | 833 | ÷ | 353,442,904 | |
| Feb 17, 2012 | 6.61 | = | 70.88 | ÷ | 10.72 | 10.72 | = | 3,826 | ÷ | 356,821,649 | |
| Feb 18, 2011 | 7.38 | = | 78.11 | ÷ | 10.58 | 10.58 | = | 3,945 | ÷ | 372,704,788 | |
| Feb 19, 2010 | 7.62 | = | 72.61 | ÷ | 9.53 | 9.53 | = | 3,675 | ÷ | 385,725,209 | |
| Feb 20, 2009 | 5.37 | = | 50.82 | ÷ | 9.46 | 9.46 | = | 3,653 | ÷ | 386,068,301 | |
| Feb 22, 2008 | 10.81 | = | 83.65 | ÷ | 7.74 | 7.74 | = | 3,113 | ÷ | 402,225,356 | |
| Feb 23, 2007 | 12.22 | = | 79.05 | ÷ | 6.47 | 6.47 | = | 2,625 | ÷ | 405,728,088 | |
| Mar 3, 2006 | 11.64 | = | 63.91 | ÷ | 5.49 | 5.49 | = | 2,197 | ÷ | 400,288,502 |
Based on: 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 General Dynamics Corp. Annual Report.
The financial trajectory between 2006 and 2020 is characterized by a general expansion in both equity valuation and operational profitability, despite periods of significant volatility.
- Share Price Performance
- An overall upward trend is evident, with the share price increasing from 63.91 USD in 2006 to 186.25 USD by 2020. A notable contraction occurred in 2009, where the price reached a period low of 50.82 USD, followed by a sustained recovery that peaked at 209.53 USD in 2018.
- Operating Profit per Share (OPPS)
- Operational efficiency showed consistent growth, rising from 5.49 USD in 2006 to 16.05 USD in 2020. This growth was interrupted by a severe anomalous decline in 2013, where OPPS fell to 2.36 USD, before rebounding strongly to 10.77 USD in 2014.
- Price to Operating Profit (P/OP) Ratio
- The valuation multiple exhibited three distinct phases. From 2006 to 2008, the ratio remained stable between 10.81 and 12.22. A period of compression followed from 2009 to 2012, with the ratio dropping to a low of 5.37. A significant spike to 28.35 occurred in 2013, which was driven by the sharp decrease in operating profit per share rather than a corresponding increase in share price. From 2014 onward, the ratio normalized, fluctuating within a range of 9.68 to 14.90.
The data indicates that while the share price generally followed a long-term growth path, the P/OP ratio was heavily influenced by operational fluctuations, particularly during the 2013 fiscal anomaly, before returning to a stabilized valuation range in the latter part of the decade.
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Comparison to Competitors
General Dynamics Corp., P/OP, long-term trends, comparison to competitors
| General Dynamics Corp. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Feb 10, 2020 | 11.61 | — | 9.08 | 14.49 | 15.07 |
| Feb 13, 2019 | 11.22 | 19.08 | 9.20 | 11.62 | 12.16 |
| Feb 12, 2018 | 14.90 | 19.69 | 21.70 | 16.47 | 11.53 |
| Feb 6, 2017 | 12.86 | 17.20 | 116.61 | 13.51 | 10.86 |
| Feb 8, 2016 | 9.85 | 10.36 | 11.66 | 12.17 | 9.71 |
| Feb 9, 2015 | 11.68 | 13.96 | 9.71 | 10.89 | 11.15 |
| Feb 7, 2014 | 9.68 | 14.75 | 10.94 | 11.62 | 10.88 |
| Feb 8, 2013 | 28.35 | 9.09 | 7.30 | 6.40 | 10.73 |
| Feb 17, 2012 | 6.61 | 9.69 | 10.41 | 7.21 | 9.40 |
| Feb 18, 2011 | 7.38 | 10.76 | 16.44 | 6.84 | 10.86 |
| Feb 19, 2010 | 7.62 | 20.91 | 63.07 | 6.47 | 9.67 |
| Feb 20, 2009 | 5.37 | 7.87 | 3.61 | 5.31 | 5.88 |
| Feb 22, 2008 | 10.81 | 11.17 | 9.03 | 9.48 | 9.95 |
| Feb 23, 2007 | 12.22 | 23.81 | 8.83 | 10.84 | 11.11 |
| Mar 3, 2006 | 11.64 | 20.69 | 12.95 | 10.66 | 11.11 |
Based on: 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).