Time Warner Cable Inc. (NYSE:TWC)

The financial performance and valuation of Time Warner Cable Inc. between 2007 and 2016 were characterized by significant volatility in the early period followed by a steady recovery and valuation expansion. A critical anomaly occurred in 2009, where a substantial negative operating profit per share disrupted valuation metrics, though subsequent years demonstrated a consistent return to profitability and growth in market capitalization.

Share Price Trends

The share price experienced a severe decline from a peak of 123.00 US$ in 2007 to a low of 46.89 US$ in 2010. Following this trough, a sustained upward trajectory was observed, with the price recovering steadily to reach 184.99 US$ by 2016, representing a significant increase in market valuation over the final six years of the period.

Operating Profit Performance

Operating profit per share showed an unstable pattern during the first few years, most notably dropping to -36.18 US$ in 2009. Post-2009, profitability recovered and grew consistently, rising from 9.41 US$ in 2010 to a peak of 16.51 US$ in 2014, before experiencing a slight moderation to 14.96 US$ in 2016.

Price to Operating Profit (P/OP) Analysis

The P/OP ratio exhibited three distinct phases. First, a contraction phase occurred between 2007 and 2010, where the ratio dropped from 18.38 to 4.98. Second, a period of stability was observed from 2010 to 2013, with the ratio hovering between 4.98 and 6.69. Third, an expansion phase began in 2014, with the ratio climbing to 12.36 by 2016, indicating that the share price began to grow at a faster rate than the underlying operating profit during the final years of the sequence.