Price to Operating Profit (P/OP)
since 2005
Calculation
Marathon Oil Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income (loss) from operations1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 17, 2022 | 12.23 | = | 21.89 | ÷ | 1.79 | 1.79 | = | 1,308 | ÷ | 730,765,163 | |
| Feb 23, 2021 | — | = | 11.16 | ÷ | -1.50 | -1.50 | = | -1,180 | ÷ | 789,075,988 | |
| Feb 20, 2020 | 12.83 | = | 10.25 | ÷ | 0.80 | 0.80 | = | 636 | ÷ | 795,849,999 | |
| Feb 21, 2019 | 8.19 | = | 16.68 | ÷ | 2.04 | 2.04 | = | 1,667 | ÷ | 818,504,459 | |
| Feb 22, 2018 | — | = | 15.18 | ÷ | -0.16 | -0.16 | = | -133 | ÷ | 849,755,866 | |
| Feb 24, 2017 | — | = | 15.73 | ÷ | -1.06 | -1.06 | = | -900 | ÷ | 847,201,196 | |
| Feb 25, 2016 | — | = | 7.39 | ÷ | -3.98 | -3.98 | = | -2,691 | ÷ | 676,886,641 | |
| Mar 2, 2015 | 11.68 | = | 27.67 | ÷ | 2.37 | 2.37 | = | 1,599 | ÷ | 674,944,619 | |
| Feb 28, 2014 | 4.49 | = | 33.50 | ÷ | 7.47 | 7.47 | = | 5,204 | ÷ | 696,944,638 | |
| Feb 22, 2013 | 3.88 | = | 34.71 | ÷ | 8.95 | 8.95 | = | 6,332 | ÷ | 707,709,281 | |
| Feb 29, 2012 | 4.96 | = | 33.89 | ÷ | 6.84 | 6.84 | = | 4,813 | ÷ | 703,925,642 | |
| Feb 28, 2011 | 6.63 | = | 49.60 | ÷ | 7.49 | 7.49 | = | 5,317 | ÷ | 710,280,842 | |
| Feb 26, 2010 | 5.71 | = | 28.95 | ÷ | 5.07 | 5.07 | = | 3,590 | ÷ | 707,926,768 | |
| Feb 27, 2009 | 2.34 | = | 23.27 | ÷ | 9.93 | 9.93 | = | 7,023 | ÷ | 707,524,845 | |
| Feb 29, 2008 | 5.68 | = | 53.16 | ÷ | 9.37 | 9.37 | = | 6,640 | ÷ | 708,970,468 | |
| Mar 1, 2007 | 3.52 | = | 45.57 | ÷ | 12.96 | 12.96 | = | 8,967 | ÷ | 691,725,904 | |
| Mar 6, 2006 | 4.83 | = | 34.89 | ÷ | 7.23 | 7.23 | = | 5,302 | ÷ | 733,617,340 |
Based on: 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 Marathon Oil Corp. Annual Report.
Analysis of the Price to Operating Profit (P/OP) ratio reveals distinct phases of valuation and operational profitability between 2006 and 2022.
- Historical Valuation Stability (2006–2014)
- During this period, the P/OP ratio exhibited moderate volatility, ranging from a low of 2.34 in 2009 to a high of 6.63 in 2011. Share prices reached a peak of 53.16 USD in 2008, supported by strong operating profit per share, which peaked at 12.96 USD in 2007. The relatively low P/OP multiples suggest that the market valued the company conservatively relative to its operating earnings during this decade.
- Operational Decline and Ratio Distortion (2015–2018)
- A significant shift in valuation occurred in 2015, where the P/OP ratio climbed to 11.68 as operating profit per share dropped sharply to 2.37 USD. Between 2016 and 2018, the company experienced a period of negative operating profit, with a low of -3.98 USD per share in 2016. Due to these operating losses, the P/OP ratio became mathematically undefined or unavailable during this interval, reflecting a period of severe financial distress.
- Recovery and Valuation Reset (2019–2022)
- From 2019 to 2022, the P/OP ratio established a higher baseline compared to the pre-2015 era. Despite operating profit per share remaining significantly lower than historical peaks—ranging from -1.50 USD to 2.04 USD—the P/OP ratio remained elevated, peaking at 12.83 in 2020. The most recent recorded value in 2022 shows a P/OP of 12.23, indicating that the share price is now trading at a much higher multiple of operating profit than was characteristic of the 2006–2014 period.
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