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.
The financial trajectory between 2011 and 2020 is characterized by significant volatility in both market valuation and operational profitability. The relationship between share price and operating profit reveals distinct phases of expansion, contraction, and eventual stabilization.
- Share Price Trends
- A general upward trend was observed from 2011 through 2015, with the price peaking at 42.03 US$. This growth was followed by a sharp decline in 2016, where the price dropped to 15.62 US$. In the subsequent years, a period of moderate recovery occurred, with the price fluctuating between 17.24 US$ and 22.48 US$, ending the period at 21.81 US$.
- Operating Profit per Share Performance
- Operating profit per share exhibited strong growth in the early part of the decade, rising from 1.58 US$ in 2011 to a peak of 3.87 US$ in 2014. A significant contraction followed, with earnings falling to 1.10 US$ by 2016. From 2017 onward, a consistent recovery pattern is evident, with profits increasing annually to reach 2.15 US$ by February 2020.
- Price to Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio underwent a notable compression from 2011 to 2014, falling from 19.45 to 8.29, which indicates that operating profit growth significantly outpaced the increase in share price. A sharp anomaly occurred in 2015, where the ratio spiked to 20.13, driven by a decline in operating profit coinciding with a peak in share price. Following this peak, the ratio stabilized and entered a gradual downward trend, closing at 10.14 in 2020, reflecting a more conservative valuation relative to operational earnings compared to the 2011-2015 period.
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