Price to Operating Profit (P/OP)
since 2005
Calculation
Humana Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income from operations1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 15, 2024 | 10.94 | = | 363.98 | ÷ | 33.26 | 33.26 | = | 4,013 | ÷ | 120,653,315 | |
| Feb 16, 2023 | 16.63 | = | 505.69 | ÷ | 30.41 | 30.41 | = | 3,800 | ÷ | 124,974,862 | |
| Feb 17, 2022 | 17.08 | = | 424.71 | ÷ | 24.86 | 24.86 | = | 3,148 | ÷ | 126,633,599 | |
| Feb 18, 2021 | 9.78 | = | 378.33 | ÷ | 38.69 | 38.69 | = | 4,986 | ÷ | 128,861,929 | |
| Feb 20, 2020 | 15.35 | = | 370.99 | ÷ | 24.16 | 24.16 | = | 3,192 | ÷ | 132,106,497 | |
| Feb 21, 2019 | 13.45 | = | 307.56 | ÷ | 22.87 | 22.87 | = | 3,100 | ÷ | 135,566,909 | |
| Feb 16, 2018 | 8.69 | = | 269.00 | ÷ | 30.95 | 30.95 | = | 4,262 | ÷ | 137,684,326 | |
| Feb 17, 2017 | 17.55 | = | 204.60 | ÷ | 11.66 | 11.66 | = | 1,741 | ÷ | 149,324,101 | |
| Feb 18, 2016 | 10.60 | = | 167.75 | ÷ | 15.83 | 15.83 | = | 2,347 | ÷ | 148,303,389 | |
| Feb 18, 2015 | 9.84 | = | 155.40 | ÷ | 15.79 | 15.79 | = | 2,362 | ÷ | 149,607,897 | |
| Feb 19, 2014 | 7.62 | = | 101.98 | ÷ | 13.38 | 13.38 | = | 2,061 | ÷ | 154,034,320 | |
| Feb 22, 2013 | 5.55 | = | 70.61 | ÷ | 12.73 | 12.73 | = | 2,016 | ÷ | 158,356,929 | |
| Feb 24, 2012 | 6.23 | = | 89.00 | ÷ | 14.29 | 14.29 | = | 2,344 | ÷ | 164,050,846 | |
| Feb 18, 2011 | 5.58 | = | 61.44 | ÷ | 11.00 | 11.00 | = | 1,855 | ÷ | 168,545,398 | |
| Feb 19, 2010 | 4.52 | = | 45.35 | ÷ | 10.03 | 10.03 | = | 1,708 | ÷ | 170,225,097 | |
| Feb 20, 2009 | 6.38 | = | 40.54 | ÷ | 6.36 | 6.36 | = | 1,073 | ÷ | 168,854,995 | |
| Feb 25, 2008 | 8.63 | = | 68.87 | ÷ | 7.98 | 7.98 | = | 1,358 | ÷ | 170,173,405 | |
| Feb 23, 2007 | 12.30 | = | 60.86 | ÷ | 4.95 | 4.95 | = | 825 | ÷ | 166,720,633 | |
| Mar 3, 2006 | 18.04 | = | 50.86 | ÷ | 2.82 | 2.82 | = | 461 | ÷ | 163,485,922 |
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 Humana Inc. Annual Report.
Between 2006 and 2024, the company exhibited significant growth in both share price and operating profit per share, although the valuation multiple reflected by the Price to Operating Profit (P/OP) ratio experienced substantial volatility. While the share price reached a peak of 505.69 USD in 2023 and operating profit per share climbed from 2.82 USD in 2006 to 33.26 USD in 2024, the relationship between these two metrics shifted across three distinct phases.
- Valuation Compression (2006–2010)
- A pronounced downward trend in the P/OP ratio is observed during this period, falling from a high of 18.04 in 2006 to a minimum of 4.52 in 2010. This compression occurred despite a consistent increase in operating profit per share, which rose from 2.82 USD to 10.03 USD. This divergence suggests that share price growth lagged significantly behind the growth in operating profitability during these years.
- Expansion and Valuation Peak (2011–2017)
- The P/OP ratio entered a recovery phase starting in 2011, trending generally upward to reach a peak of 17.55 in 2017. Notably, the 2017 peak occurred during a year when operating profit per share declined to 11.66 USD from the previous year's 15.83 USD, while the share price continued to climb to 204.60 USD, indicating an expansion of the valuation multiple despite a dip in operational performance.
- Recent Volatility and Correction (2018–2024)
- The most recent period is characterized by sharp fluctuations in the P/OP ratio. After a steep drop to 8.69 in 2018, the ratio rose to 15.35 by 2020. Between 2021 and 2023, the ratio remained volatile, ranging from a low of 9.78 to a high of 17.08. By 2024, a correction is observed, with the P/OP ratio declining to 10.94, coinciding with a decrease in share price to 363.98 USD despite operating profit per share remaining strong at 33.26 USD.
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Comparison to Competitors
Humana Inc., P/OP, long-term trends, comparison to competitors
| Humana Inc. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Feb 15, 2024 | 10.94 | 30.54 | 75.42 | 21.20 | 14.20 |
| Feb 16, 2023 | 16.63 | 22.18 | 54.49 | 20.48 | 15.89 |
| Feb 17, 2022 | 17.08 | 24.45 | 56.11 | 37.44 | 18.77 |
| Feb 18, 2021 | 9.78 | 40.69 | 88.37 | 26.29 | 14.12 |
| Feb 20, 2020 | 15.35 | 34.03 | 48.89 | 21.26 | 14.40 |
| Feb 21, 2019 | 13.45 | 36.64 | 49.87 | 17.64 | 14.58 |
| Feb 16, 2018 | 8.69 | 60.88 | 44.40 | 22.64 | 14.42 |
| Feb 17, 2017 | 17.55 | 24.25 | 28.93 | 22.18 | 11.79 |
| Feb 18, 2016 | 10.60 | 19.80 | 27.25 | 28.81 | 9.59 |
| Feb 18, 2015 | 9.84 | 27.50 | 34.42 | 16.68 | 10.12 |
| Feb 19, 2014 | 7.62 | 22.79 | 17.96 | 11.80 | 7.22 |
| Feb 22, 2013 | 5.55 | 6.82 | 26.21 | — | 6.32 |
| Feb 24, 2012 | 6.23 | 15.35 | 27.83 | — | 6.55 |
| Feb 18, 2011 | 5.58 | 11.92 | 23.28 | — | 5.90 |
| Feb 19, 2010 | 4.52 | 13.54 | 33.47 | — | 5.95 |
| Feb 20, 2009 | 6.38 | 14.66 | 14.45 | — | 6.59 |
| Feb 25, 2008 | 8.63 | 18.76 | 55.84 | — | 7.62 |
| Feb 23, 2007 | 12.30 | 40.49 | 38.98 | — | 10.47 |
| Mar 3, 2006 | 18.04 | 15.48 | 50.21 | — | 14.87 |
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).