Price to Operating Profit (P/OP)
since 2010
Calculation
Kinder Morgan Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2020 | 10.14 | = | 21.81 | ÷ | 2.15 | 2.15 | = | 4,873 | ÷ | 2,265,063,459 | |
| Feb 8, 2019 | 10.75 | = | 18.02 | ÷ | 1.68 | 1.68 | = | 3,794 | ÷ | 2,263,656,419 | |
| Feb 9, 2018 | 10.73 | = | 17.24 | ÷ | 1.61 | 1.61 | = | 3,544 | ÷ | 2,206,066,684 | |
| Feb 10, 2017 | 14.05 | = | 22.48 | ÷ | 1.60 | 1.60 | = | 3,572 | ÷ | 2,232,438,943 | |
| Feb 16, 2016 | 14.24 | = | 15.62 | ÷ | 1.10 | 1.10 | = | 2,447 | ÷ | 2,231,555,976 | |
| Feb 23, 2015 | 20.13 | = | 42.03 | ÷ | 2.09 | 2.09 | = | 4,448 | ÷ | 2,130,052,022 | |
| Feb 24, 2014 | 8.29 | = | 32.10 | ÷ | 3.87 | 3.87 | = | 3,990 | ÷ | 1,030,677,290 | |
| Mar 1, 2013 | 14.88 | = | 37.26 | ÷ | 2.50 | 2.50 | = | 2,593 | ÷ | 1,035,669,044 | |
| Feb 23, 2012 | 16.87 | = | 32.32 | ÷ | 1.92 | 1.92 | = | 1,539 | ÷ | 803,344,932 | |
| Mar 2, 2011 | 19.45 | = | 30.77 | ÷ | 1.58 | 1.58 | = | 1,281 | ÷ | 809,462,927 |
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).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Kinder Morgan Inc. Annual Report.
- Share Price Trend
- The share price exhibited fluctuations over the examined periods. Initially, it increased from $30.77 in 2011 to a peak of $42.03 in 2015. This was followed by a sharp decline to $15.62 in 2016, recovering somewhat in the subsequent years but remaining below the earlier peak, ending at $21.81 in 2020. Overall, the share price shows volatility with a significant drop after 2015 and a moderate recovery thereafter.
- Operating Profit Per Share
- The operating profit per share demonstrated an initial upward trajectory, ascending from $1.58 in 2011 to a high of $3.87 in 2014. After this peak, a marked decline occurred, with figures dropping to $1.10 in 2016. Subsequently, there was a gradual recovery with the operating profit rising again to $2.15 in 2020. This indicates a period of strong growth followed by a contraction and moderate improvement in profitability per share.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio declined significantly from 19.45 in 2011 to a low of 8.29 in 2014, reflecting a more favorable valuation relative to operating profit at that time. However, this ratio increased sharply to 20.13 in 2015, correlating with the share price peak and operating profit drop. After 2015, the ratio generally stabilized within the range of 10.14 to 14.24, indicating a more balanced market valuation in relation to the company’s operating profits through the latter years.
- Overall Insights
- The data reveals a period of growth in both share price and operating profit through 2014, followed by a pronounced decline in 2015-2016. The recovery phase from 2017 onwards shows moderate improvement in profitability and share price, though neither had returned to the previous highs by 2020. The fluctuations in the P/OP ratio suggest varying investor sentiment and market valuation, with an emphasis on caution after 2015. This pattern indicates operational challenges impacting profitability and market confidence during the mid-period, with gradual stabilization in later years.