Price to Operating Profit (P/OP)
since 2005
Calculation
General Mills Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating profit1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 28, 2019 | 12.57 | = | 52.52 | ÷ | 4.18 | 4.18 | = | 2,515,900 | ÷ | 601,959,611 | |
| Jun 29, 2018 | 10.47 | = | 44.26 | ÷ | 4.23 | 4.23 | = | 2,509,300 | ÷ | 593,367,848 | |
| Jun 29, 2017 | 12.36 | = | 54.97 | ÷ | 4.45 | 4.45 | = | 2,566,400 | ÷ | 577,099,679 | |
| Jun 30, 2016 | 15.73 | = | 71.32 | ÷ | 4.53 | 4.53 | = | 2,707,400 | ÷ | 597,020,906 | |
| Jul 6, 2015 | 16.31 | = | 56.59 | ÷ | 3.47 | 3.47 | = | 2,077,300 | ÷ | 598,737,719 | |
| Jul 3, 2014 | 10.99 | = | 53.05 | ÷ | 4.83 | 4.83 | = | 2,957,400 | ÷ | 612,508,457 | |
| Jul 3, 2013 | 11.00 | = | 48.95 | ÷ | 4.45 | 4.45 | = | 2,851,800 | ÷ | 640,860,417 | |
| Jul 3, 2012 | 9.88 | = | 39.02 | ÷ | 3.95 | 3.95 | = | 2,562,400 | ÷ | 648,588,155 | |
| Jul 8, 2011 | 8.56 | = | 36.81 | ÷ | 4.30 | 4.30 | = | 2,774,500 | ÷ | 644,862,721 | |
| Jul 9, 2010 | 9.03 | = | 36.15 | ÷ | 4.00 | 4.00 | = | 2,606,100 | ÷ | 651,216,065 | |
| Jul 13, 2009 | 8.28 | = | 29.55 | ÷ | 3.57 | 3.57 | = | 2,322,900 | ÷ | 650,831,872 | |
| Jul 11, 2008 | 9.53 | = | 31.57 | ÷ | 3.31 | 3.31 | = | 2,227,800 | ÷ | 672,405,794 | |
| Jul 26, 2007 | 8.92 | = | 27.81 | ÷ | 3.12 | 3.12 | = | 2,057,800 | ÷ | 660,376,158 | |
| Jul 27, 2006 | 9.34 | = | 26.01 | ÷ | 2.79 | 2.79 | = | 1,966,000 | ÷ | 705,623,534 | |
| Jul 28, 2005 | 7.67 | = | 23.77 | ÷ | 3.10 | 3.10 | = | 2,270,000 | ÷ | 732,047,408 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of General Mills Inc. Annual Report.
The financial performance and valuation from 2005 to 2019 exhibit a period of steady growth followed by increased volatility in both market pricing and operating efficiency.
- Share Price Evolution
- A consistent upward trajectory was observed from 2005, with the share price increasing from 23.77 to a peak of 71.32 in 2016. This growth phase was followed by a significant correction through 2018, where the price dropped to 44.26, before experiencing a moderate recovery to 52.52 in 2019.
- Operating Profit Per Share Trends
- Operating profit per share generally trended upward from 3.10 in 2005 to a high of 4.83 in 2014. A sharp decline occurred in 2015, with the figure falling to 3.47, marking a temporary disruption in profitability. Following this dip, operating profit recovered and stabilized, fluctuating between 4.18 and 4.53 through 2019.
- Price to Operating Profit (P/OP) Ratio Dynamics
- The P/OP ratio remained relatively constrained between 7.67 and 11.00 from 2005 through 2014. A period of significant valuation expansion is evident in 2015 and 2016, with the ratio peaking at 16.31. This surge was driven by the convergence of a continuing increase in share price and a simultaneous contraction in operating profit per share. From 2017 onward, the ratio underwent a normalization process, returning to a range between 10.47 and 12.57, suggesting a realignment of market expectations with actual operating results.
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Comparison to Competitors
General Mills Inc., P/OP, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Jun 28, 2019 | 12.57 | 24.95 | 21.87 | 19.78 | 12.92 |
| Jun 29, 2018 | 10.47 | 22.54 | 20.45 | 16.10 | 10.48 |
| Jun 29, 2017 | 12.36 | 25.05 | 17.88 | 15.15 | 13.91 |
| Jun 30, 2016 | 15.73 | 20.80 | 26.97 | 15.57 | 14.71 |
| Jul 6, 2015 | 16.31 | 21.91 | 7.02 | 16.77 | 13.31 |
| Jul 3, 2014 | 10.99 | 18.91 | 18.81 | 15.51 | 10.98 |
| Jul 3, 2013 | 11.00 | 16.40 | 14.48 | 12.25 | 9.26 |
| Jul 3, 2012 | 9.88 | 15.90 | 12.95 | 12.76 | 11.10 |
| Jul 8, 2011 | 8.56 | 15.42 | 10.07 | 10.32 | 10.71 |
| Jul 9, 2010 | 9.03 | 17.36 | 9.83 | 12.07 | 9.99 |
| Jul 13, 2009 | 8.28 | 14.76 | 7.72 | 12.18 | 9.18 |
| Jul 11, 2008 | 9.53 | 11.26 | 8.77 | 11.71 | 6.69 |
| Jul 26, 2007 | 8.92 | 19.05 | 11.16 | 16.02 | — |
| Jul 27, 2006 | 9.34 | 17.46 | 11.73 | 16.43 | — |
| Jul 28, 2005 | 7.67 | 16.34 | 10.73 | 16.65 | — |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).