Price to Operating Profit (P/OP)
since 2005
Calculation
EOG Resources 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2020 | 9.44 | = | 60.00 | ÷ | 6.36 | 6.36 | = | 3,699,011 | ÷ | 582,054,451 | |
| Feb 26, 2019 | 12.19 | = | 93.91 | ÷ | 7.71 | 7.71 | = | 4,469,346 | ÷ | 580,053,225 | |
| Feb 27, 2018 | 66.80 | = | 106.94 | ÷ | 1.60 | 1.60 | = | 926,402 | ÷ | 578,636,343 | |
| Feb 27, 2017 | — | = | 97.91 | ÷ | -2.12 | -2.12 | = | -1,225,281 | ÷ | 576,832,077 | |
| Feb 25, 2016 | — | = | 68.50 | ÷ | -12.16 | -12.16 | = | -6,686,079 | ÷ | 549,883,390 | |
| Feb 18, 2015 | 9.97 | = | 95.31 | ÷ | 9.56 | 9.56 | = | 5,241,823 | ÷ | 548,445,003 | |
| Feb 24, 2014 | 13.41 | = | 90.20 | ÷ | 6.73 | 6.73 | = | 3,675,211 | ÷ | 546,239,144 | |
| Feb 22, 2013 | 23.02 | = | 62.67 | ÷ | 2.72 | 2.72 | = | 1,479,797 | ÷ | 543,493,020 | |
| Feb 24, 2012 | 14.97 | = | 58.78 | ÷ | 3.93 | 3.93 | = | 2,113,309 | ÷ | 538,171,214 | |
| Feb 24, 2011 | 53.54 | = | 55.09 | ÷ | 1.03 | 1.03 | = | 523,319 | ÷ | 508,558,574 | |
| Feb 25, 2010 | 24.25 | = | 46.61 | ÷ | 1.92 | 1.92 | = | 970,841 | ÷ | 505,156,106 | |
| Feb 25, 2009 | 3.45 | = | 26.02 | ÷ | 7.54 | 7.54 | = | 3,767,185 | ÷ | 499,380,188 | |
| Feb 28, 2008 | 18.69 | = | 62.37 | ÷ | 3.34 | 3.34 | = | 1,648,396 | ÷ | 494,038,376 | |
| Feb 28, 2007 | 8.72 | = | 33.87 | ÷ | 3.88 | 3.88 | = | 1,895,426 | ÷ | 487,996,298 | |
| Feb 23, 2006 | 8.51 | = | 34.93 | ÷ | 4.11 | 4.11 | = | 1,991,815 | ÷ | 485,095,048 |
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 EOG Resources Inc. Annual Report.
The analysis of valuation metrics between 2006 and 2020 reveals significant volatility in the relationship between share price and operating profitability. The Price to Operating Profit (P/OP) ratio demonstrates extreme fluctuations, reflecting periods of operational distress, market speculation, and subsequent recovery.
- Initial Valuation Trends (2006–2009)
- The period began with relative stability, as the P/OP ratio remained consistent between 8.51 and 8.72. A sharp divergence occurred in 2009, where the ratio dropped to a period low of 3.45. This was driven by a significant increase in operating profit per share to 7.54, coinciding with a sharp decline in share price to 26.02.
- Operational Contraction and Valuation Spikes (2010–2015)
- A marked increase in the P/OP ratio is observed between 2010 and 2011, peaking at 53.54. This spike resulted from a substantial collapse in operating profit per share, which fell to 1.03 in 2011. From 2012 to 2015, the ratio entered a steady decline, falling from 14.97 to 9.97 as operating profits recovered, reaching a peak of 9.56 per share in 2015.
- Profitability Crisis and Recovery (2016–2018)
- A period of severe financial instability is evident in 2016 and 2017, during which operating profit per share turned negative, reaching -12.16 and -2.12 respectively. Consequently, the P/OP ratio was not applicable during these years. Upon returning to profitability in 2018, the P/OP ratio spiked to 66.80, a result of a high share price of 106.94 paired with a marginal operating profit of 1.60 per share.
- Recent Stabilization (2019–2020)
- The final observed period shows a trend toward valuation normalization. The P/OP ratio decreased from 12.19 in 2019 to 9.44 in 2020. This stabilization was supported by a recovery in operating profit per share to 6.36, despite a simultaneous decrease in the share price to 60.00.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?