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.
- Share Price Trend
- The share price exhibited considerable volatility over the observed period. Initial growth was noted from approximately $63.91 in early 2006 to a peak around $83.65 by early 2008. Subsequently, a significant decline occurred in 2009, dropping to $50.82, followed by a recovery phase reaching a high of $136.94 by early 2015. The share price continued to increase, peaking at $209.53 by early 2018, before experiencing a reduction to $173.48 in 2019 and a moderate recovery to $186.25 in 2020.
- Operating Profit Per Share
- Operating profit per share demonstrated a generally upward trajectory throughout the period. Starting at $5.49 in 2006, it increased steadily to reach a peak near $10.72 in early 2012. An exceptional dip was evident in 2013, dropping sharply to $2.36, which is a notable outlier within the data. Following this anomaly, the operating profit per share showed a consistent and strong recovery, rising steadily from $10.77 in 2014 to $16.05 in 2020.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio showed significant fluctuations, reflecting changes in investor valuation relative to operating profit. Initially, the ratio fluctuated between roughly 10.81 and 12.22 in the early period (2006–2008). A marked decrease occurred in 2009, reaching a low of 5.37, indicating the share price was comparatively low relative to operating profits. This was followed by a gradual decrease and stabilization around single digits until 2012. An extraordinary spike to 28.35 in 2013 coincided with the sharp drop in operating profit, suggesting that the share price remained relatively high despite the profit decline. Afterward, the P/OP ratio moderated, ranging between approximately 9.68 and 14.9 from 2014 to 2020, indicating a more normalized valuation relative to operational earnings.
- Overall Analysis
- The data depicts a company experiencing periods of growth, volatility, and recovery. The sharp dip in operating profit and resulting P/OP ratio spike in 2013 is a standout event, likely signaling operational challenges or extraordinary circumstances affecting profit. Despite this, the subsequent years show a robust recovery in operating profit and a moderate correction in valuation ratios. Share price trends broadly correlate with changes in operating profit, though some divergence such as the 2013 anomaly is evident. The general trend from 2014 onwards suggests improved profitability accompanied by relatively stable investor valuation multiples.
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).