Price to Operating Profit (P/OP)
since 2005
Calculation
Raytheon Co., 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 | 13.40 | = | 229.76 | ÷ | 17.15 | 17.15 | = | 4,774 | ÷ | 278,441,000 | |
| Feb 13, 2019 | 11.25 | = | 180.94 | ÷ | 16.08 | 16.08 | = | 4,538 | ÷ | 282,239,000 | |
| Feb 14, 2018 | 18.48 | = | 212.58 | ÷ | 11.50 | 11.50 | = | 3,318 | ÷ | 288,506,000 | |
| Feb 15, 2017 | 13.74 | = | 151.96 | ÷ | 11.06 | 11.06 | = | 3,240 | ÷ | 292,880,000 | |
| Feb 10, 2016 | 12.56 | = | 126.57 | ÷ | 10.08 | 10.08 | = | 3,013 | ÷ | 298,998,000 | |
| Feb 11, 2015 | 10.36 | = | 107.15 | ÷ | 10.34 | 10.34 | = | 3,179 | ÷ | 307,323,000 | |
| Feb 11, 2014 | 10.09 | = | 94.29 | ÷ | 9.34 | 9.34 | = | 2,938 | ÷ | 314,509,000 | |
| Feb 13, 2013 | 5.89 | = | 53.97 | ÷ | 9.16 | 9.16 | = | 2,989 | ÷ | 326,355,000 | |
| Feb 22, 2012 | 6.00 | = | 50.41 | ÷ | 8.41 | 8.41 | = | 2,857 | ÷ | 339,876,000 | |
| Feb 23, 2011 | 7.01 | = | 50.83 | ÷ | 7.25 | 7.25 | = | 2,607 | ÷ | 359,694,000 | |
| Feb 24, 2010 | 7.00 | = | 56.17 | ÷ | 8.02 | 8.02 | = | 3,042 | ÷ | 379,083,000 | |
| Feb 25, 2009 | 6.63 | = | 43.02 | ÷ | 6.49 | 6.49 | = | 2,596 | ÷ | 400,119,000 | |
| Feb 27, 2008 | 12.17 | = | 66.42 | ÷ | 5.46 | 5.46 | = | 2,328 | ÷ | 426,386,000 | |
| Feb 22, 2007 | 13.37 | = | 55.13 | ÷ | 4.12 | 4.12 | = | 1,840 | ÷ | 446,193,000 | |
| Mar 2, 2006 | 11.63 | = | 43.98 | ÷ | 3.78 | 3.78 | = | 1,687 | ÷ | 446,115,000 |
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), 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 Raytheon Co. Annual Report.
The financial data indicates a long-term upward trajectory in both share price and operating profit per share from 2006 to 2020. While operating profit per share grew consistently and linearly, the share price exhibited greater volatility, resulting in significant fluctuations in the Price to Operating Profit (P/OP) ratio over the fifteen-year period.
- Operating Profit Performance
- Operating profit per share demonstrated steady growth, increasing from 3.78 US$ in 2006 to 17.15 US$ by 2020. This represents a consistent improvement in fundamental profitability, with only a marginal decline observed between 2010 and 2011 before resuming a steady climb.
- Share Price Evolution
- The share price experienced a general increase from 43.98 US$ in 2006 to 229.76 US$ in 2020. A notable contraction occurred in 2009, where the price dropped to 43.02 US$. Following this trough, a period of accelerated growth began around 2014, with the price more than doubling between 2014 and 2018.
- Price to Operating Profit (P/OP) Ratio Trends
- The P/OP ratio transitioned through three distinct phases: 1. Valuation Compression (2009–2013): After an initial range of 11.63 to 13.37, the ratio dropped sharply to a low of 5.89 in 2013, indicating that the share price lagged behind the growth in operating profit. 2. Valuation Expansion (2014–2018): A significant shift occurred as the ratio climbed from 10.09 in 2014 to a peak of 18.48 in 2018, suggesting increased investor optimism or higher premiums attributed to the company's earnings. 3. Stabilization (2019–2020): The ratio corrected to 11.25 in 2019 before settling at 13.40 in 2020, returning to levels similar to those observed in the 2006–2008 period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Raytheon Co., P/OP, long-term trends, comparison to competitors
| Raytheon Co. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Feb 12, 2020 | 13.40 | — | 9.08 | 14.49 | 15.07 |
| Feb 13, 2019 | 11.25 | 19.08 | 9.20 | 11.62 | 12.16 |
| Feb 14, 2018 | 18.48 | 19.69 | 21.70 | 16.47 | 11.53 |
| Feb 15, 2017 | 13.74 | 17.20 | 116.61 | 13.51 | 10.86 |
| Feb 10, 2016 | 12.56 | 10.36 | 11.66 | 12.17 | 9.71 |
| Feb 11, 2015 | 10.36 | 13.96 | 9.71 | 10.89 | 11.15 |
| Feb 11, 2014 | 10.09 | 14.75 | 10.94 | 11.62 | 10.88 |
| Feb 13, 2013 | 5.89 | 9.09 | 7.30 | 6.40 | 10.73 |
| Feb 22, 2012 | 6.00 | 9.69 | 10.41 | 7.21 | 9.40 |
| Feb 23, 2011 | 7.01 | 10.76 | 16.44 | 6.84 | 10.86 |
| Feb 24, 2010 | 7.00 | 20.91 | 63.07 | 6.47 | 9.67 |
| Feb 25, 2009 | 6.63 | 7.87 | 3.61 | 5.31 | 5.88 |
| Feb 27, 2008 | 12.17 | 11.17 | 9.03 | 9.48 | 9.95 |
| Feb 22, 2007 | 13.37 | 23.81 | 8.83 | 10.84 | 11.11 |
| Mar 2, 2006 | 11.63 | 20.69 | 12.95 | 10.66 | 11.11 |
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), 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).