Price to Operating Profit (P/OP)
since 2005
Calculation
Constellation Brands Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Apr 21, 2022 | 20.52 | = | 254.21 | ÷ | 12.39 | 12.39 | = | 2,331,700 | ÷ | 188,217,466 | |
| Apr 20, 2021 | 16.57 | = | 238.31 | ÷ | 14.39 | 14.39 | = | 2,791,100 | ÷ | 194,027,715 | |
| Apr 21, 2020 | 13.70 | = | 153.02 | ÷ | 11.17 | 11.17 | = | 2,154,500 | ÷ | 192,840,856 | |
| Apr 23, 2019 | 16.46 | = | 207.48 | ÷ | 12.61 | 12.61 | = | 2,412,200 | ÷ | 191,349,811 | |
| Apr 23, 2018 | 19.12 | = | 228.26 | ÷ | 11.94 | 11.94 | = | 2,284,500 | ÷ | 191,391,478 | |
| Apr 27, 2017 | 13.89 | = | 171.06 | ÷ | 12.32 | 12.32 | = | 2,399,400 | ÷ | 194,800,645 | |
| Apr 25, 2016 | 17.75 | = | 156.84 | ÷ | 8.84 | 8.84 | = | 1,765,100 | ÷ | 199,768,177 | |
| Apr 28, 2015 | 15.20 | = | 117.12 | ÷ | 7.70 | 7.70 | = | 1,500,200 | ÷ | 194,743,958 | |
| Apr 29, 2014 | 6.27 | = | 79.75 | ÷ | 12.71 | 12.71 | = | 2,437,700 | ÷ | 191,793,326 | |
| Apr 29, 2013 | 16.96 | = | 47.75 | ÷ | 2.82 | 2.82 | = | 522,900 | ÷ | 185,672,486 | |
| Apr 30, 2012 | 8.39 | = | 21.60 | ÷ | 2.58 | 2.58 | = | 486,500 | ÷ | 188,878,055 | |
| Apr 29, 2011 | 9.49 | = | 22.39 | ÷ | 2.36 | 2.36 | = | 502,500 | ÷ | 213,022,885 | |
| Apr 29, 2010 | 12.69 | = | 18.55 | ÷ | 1.46 | 1.46 | = | 311,500 | ÷ | 213,118,311 | |
| Apr 29, 2009 | 107.90 | = | 11.23 | ÷ | 0.10 | 0.10 | = | 23,000 | ÷ | 220,996,724 | |
| Apr 29, 2008 | — | = | 18.73 | ÷ | -1.64 | -1.64 | = | -356,700 | ÷ | 217,099,937 | |
| Apr 30, 2007 | 7.54 | = | 22.41 | ÷ | 2.97 | 2.97 | = | 699,000 | ÷ | 235,056,959 | |
| May 2, 2006 | 8.38 | = | 24.99 | ÷ | 2.98 | 2.98 | = | 666,115 | ÷ | 223,472,234 | |
| May 16, 2005 | 10.41 | = | 26.90 | ÷ | 2.58 | 2.58 | = | 567,896 | ÷ | 219,867,600 |
Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Constellation Brands Inc. Annual Report.
The long-term trajectory of the Price to Operating Profit (P/OP) ratio reveals significant shifts in both operational performance and market valuation. Between 2005 and 2022, the valuation transitioned from a period of volatility and lower earnings to a sustained high-profitability phase characterized by expanding valuation multiples.
- Operating Profitability Trends
- Operating profit per share remained relatively stable between 2005 and 2007, followed by a sharp contraction in 2008, which resulted in a loss of 1.64 USD per share. A recovery phase ensued, culminating in a substantial step-change in 2014, where operating profit per share increased from 2.82 USD to 12.71 USD. Following this pivot, profitability levels remained consistently elevated, fluctuating between 7.70 USD and 14.39 USD through 2022.
- Share Price Evolution
- The share price experienced a general decline during the initial period, reaching a minimum of 11.23 USD in 2009. From 2010 to 2018, a strong growth trend was observed, with the price ascending from 18.55 USD to a peak of 228.26 USD. While subsequent years introduced volatility, including a dip to 153.02 USD in 2020, the price recovered to end the period at 254.21 USD in 2022.
- P/OP Ratio Analysis
- The P/OP ratio exhibited extreme volatility during periods of low profitability, most notably in 2009, where it spiked to 107.90 as a result of a marginal operating profit of 0.10 USD. Following the substantial increase in operating profit in 2014, the ratio contracted to 6.27, suggesting that the share price had not yet fully adjusted to the new earnings baseline. From 2015 onward, a gradual expansion of the multiple is observed, with the ratio rising from 15.20 to 20.52 by 2022, indicating an increasing market premium attributed to the company's operating performance.
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Comparison to Competitors
Constellation Brands Inc., P/OP, long-term trends, comparison to competitors
| Constellation Brands Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Apr 21, 2022 | 20.52 | 23.72 | 25.43 | 20.67 | 12.96 |
| Apr 20, 2021 | 16.57 | 26.19 | 20.00 | 20.87 | 12.90 |
| Apr 21, 2020 | 13.70 | 24.03 | 20.60 | 18.47 | 11.43 |
| Apr 23, 2019 | 16.46 | 24.95 | 21.87 | 19.78 | 12.92 |
| Apr 23, 2018 | 19.12 | 22.54 | 20.45 | 16.10 | 10.48 |
| Apr 27, 2017 | 13.89 | 25.05 | 17.88 | 15.15 | 13.91 |
| Apr 25, 2016 | 17.75 | 20.80 | 26.97 | 15.57 | 14.71 |
| Apr 28, 2015 | 15.20 | 21.91 | 7.02 | 16.77 | 13.31 |
| Apr 29, 2014 | 6.27 | 18.91 | 18.81 | 15.51 | 10.98 |
| Apr 29, 2013 | 16.96 | 16.40 | 14.48 | 12.25 | 9.26 |
| Apr 30, 2012 | 8.39 | 15.90 | 12.95 | 12.76 | 11.10 |
| Apr 29, 2011 | 9.49 | 15.42 | 10.07 | 10.32 | 10.71 |
| Apr 29, 2010 | 12.69 | 17.36 | 9.83 | 12.07 | 9.99 |
| Apr 29, 2009 | 107.90 | 14.76 | 7.72 | 12.18 | 9.18 |
| Apr 29, 2008 | — | 11.26 | 8.77 | 11.71 | 6.69 |
| Apr 30, 2007 | 7.54 | 19.05 | 11.16 | 16.02 | — |
| May 2, 2006 | 8.38 | 17.46 | 11.73 | 16.43 | — |
| May 16, 2005 | 10.41 | 16.34 | 10.73 | 16.65 | — |
Based on: 10-K (reporting date: 2022-02-28), 10-K (reporting date: 2021-02-28), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-02-28), 10-K (reporting date: 2018-02-28), 10-K (reporting date: 2017-02-28), 10-K (reporting date: 2016-02-29), 10-K (reporting date: 2015-02-28), 10-K (reporting date: 2014-02-28), 10-K (reporting date: 2013-02-28), 10-K (reporting date: 2012-02-29), 10-K (reporting date: 2011-02-28), 10-K (reporting date: 2010-02-28), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-02-29), 10-K (reporting date: 2007-02-28), 10-K (reporting date: 2006-02-28), 10-K (reporting date: 2005-02-28).