Price to Operating Profit (P/OP)
since 2013
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Twitter Inc. pages available for free this week:
- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2013
- Operating Profit Margin since 2013
- Debt to Equity since 2013
- Analysis of Revenues
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Calculation
Twitter Inc., 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 thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2022 | = | ÷ | = | ÷ | |||||||
| Feb 17, 2021 | = | ÷ | = | ÷ | |||||||
| Feb 19, 2020 | = | ÷ | = | ÷ | |||||||
| Feb 21, 2019 | = | ÷ | = | ÷ | |||||||
| Feb 23, 2018 | = | ÷ | = | ÷ | |||||||
| Feb 27, 2017 | = | ÷ | = | ÷ | |||||||
| Feb 29, 2016 | = | ÷ | = | ÷ | |||||||
| Mar 2, 2015 | = | ÷ | = | ÷ | |||||||
| Mar 6, 2014 | = | ÷ | = | ÷ |
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).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Twitter Inc. Annual Report.
- Share Price Trend
- The share price exhibited significant volatility over the observed period. Initially, there was a downward trend from $54.83 in March 2014 to a low of $16.06 in February 2017. This was followed by a recovery with a peak at $71.79 in February 2021. Subsequently, the price declined sharply again to $36.24 by February 2022. Overall, the share price movements indicate fluctuating investor sentiment and market conditions affecting the valuation.
- Operating Profit Per Share Trend
- The operating profit per share showed a general improvement from a substantial loss of -$1.08 in March 2014 to positive territory by February 2018 at $0.05. This upward trend continued, peaking at $0.59 in February 2019. However, the operating profit per share experienced decline thereafter, dropping to near break-even levels in 2021 ($0.03) and reverting to a loss of -$0.62 in February 2022. This pattern indicates challenges in sustaining profitability despite earlier gains.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio is recorded only for a few years, showing very high values. In February 2018, the ratio was extremely elevated at 633.05, indicating shares were priced very high relative to the operating profit per share at that time. The ratio decreased to 52.03 and 82.78 in the subsequent years, suggesting some normalization. However, the ratio spiked again dramatically to 2149.42 in 2021, reflecting either very low operating profit or inflated share price at that time. Missing data for some years constrains a complete analysis of this metric.
- General Insights
- The data suggests a company undergoing periods of financial restructuring and stability challenges. While operating profitability improved initially, recent years show a reversal, with losses returning. The share price oscillations appear to correlate with these profitability trends but also imply significant market volatility and possibly external factors influencing investor perception. High P/OP ratios point to potentially overvalued share prices relative to earnings, warranting further investigation into market expectations and operational performance.
Comparison to Competitors
Twitter Inc., P/OP, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Trade Desk Inc. | |
|---|---|---|---|---|---|---|
| Feb 16, 2022 | ||||||
| Feb 17, 2021 | ||||||
| Feb 19, 2020 | ||||||
| Feb 21, 2019 | ||||||
| Feb 23, 2018 | ||||||
| Feb 27, 2017 | ||||||
| Feb 29, 2016 | ||||||
| Mar 2, 2015 | ||||||
| Mar 6, 2014 |
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).