Price to Operating Profit (P/OP)
since 2006
Calculation
Time Warner Cable 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 millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2016 | 12.36 | = | 184.99 | ÷ | 14.96 | 14.96 | = | 4,239 | ÷ | 283,270,372 | |
| Feb 13, 2015 | 9.08 | = | 149.74 | ÷ | 16.49 | 16.49 | = | 4,632 | ÷ | 280,900,337 | |
| Feb 18, 2014 | 8.78 | = | 144.98 | ÷ | 16.51 | 16.51 | = | 4,580 | ÷ | 277,451,193 | |
| Feb 15, 2013 | 5.78 | = | 86.94 | ÷ | 15.04 | 15.04 | = | 4,445 | ÷ | 295,513,813 | |
| Feb 17, 2012 | 5.99 | = | 77.66 | ÷ | 12.96 | 12.96 | = | 4,069 | ÷ | 314,086,417 | |
| Feb 18, 2011 | 6.69 | = | 71.89 | ÷ | 10.74 | 10.74 | = | 3,689 | ÷ | 343,385,153 | |
| Feb 19, 2010 | 4.98 | = | 46.89 | ÷ | 9.41 | 9.41 | = | 3,317 | ÷ | 352,558,973 | |
| Feb 20, 2009 | — | = | 52.86 | ÷ | -36.18 | -36.18 | = | -11,782 | ÷ | 325,671,447 | |
| Feb 22, 2008 | 9.65 | = | 81.96 | ÷ | 8.49 | 8.49 | = | 2,766 | ÷ | 325,645,948 | |
| Feb 23, 2007 | 18.38 | = | 123.00 | ÷ | 6.69 | 6.69 | = | 2,179 | ÷ | 325,637,810 |
Based on: 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).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Time Warner Cable Inc. Annual Report.
The share price demonstrated a fluctuating but overall upward trajectory over the analyzed period. Initially, the price decreased sharply from 123 US$ in early 2007 to a low point of 46.89 US$ in early 2010. After reaching this trough, the share price steadily increased, surpassing its initial value and reaching 184.99 US$ by early 2016. This recovery and subsequent growth suggest renewed investor confidence and improved market perceptions over time.
The operating profit per share showed considerable volatility during the period. Starting at 6.69 US$ in early 2007, it rose to a peak of 8.49 US$ in early 2008 before plummeting to a significant negative value (-36.18 US$) in early 2009, indicating a substantial loss during that period. From 2010 onward, the operating profit per share rebounded strongly and consistently increased, reaching a high of 16.51 US$ in early 2014 before slightly moderating to 14.96 US$ by early 2016. This trend points to a recovery in operating performance after the considerable downturn in 2009.
The Price to Operating Profit (P/OP) ratio illustrated varying investor valuation of operating earnings over time. The ratio fell significantly from 18.38 in 2007 to a low of 4.98 in 2010, indicative of a moment when the market price was relatively low compared to operating profit, possibly reflecting undervaluation or reduced investor expectations. Subsequently, the ratio gradually increased to 12.36 by 2016, suggesting that the market began to price shares at a higher multiple of operating profit, likely reflecting increased optimism about future profitability or improved market conditions. The missing ratio value for 2009 corresponds with the negative operating profit, making the ratio not applicable for that period.
Overall, the analysis reveals a period marked by a sharp operational and market value decline during the financial crisis around 2008-2009, followed by a recovery and growth phase. The rise in operating profit per share and share price from 2010 onwards indicates improved financial health and positive market sentiment, while fluctuations in the P/OP ratio suggest changing investor perceptions of the company's earnings quality and growth prospects over the years.
Comparison to Competitors
Time Warner Cable Inc., P/OP, long-term trends, comparison to competitors
| Time Warner Cable Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | |
|---|---|---|---|---|---|---|
| Feb 12, 2016 | 12.36 | 24.29 | 9.07 | 49.89 | 132.15 | — |
| Feb 13, 2015 | 9.08 | 21.78 | 10.12 | 43.72 | 66.68 | 4.53 |
| Feb 18, 2014 | 8.78 | 28.56 | 10.62 | 56.90 | 105.92 | 290.04 |
| Feb 15, 2013 | 5.78 | 19.47 | 8.69 | 131.64 | 184.56 | — |
| Feb 17, 2012 | 5.99 | 15.73 | 7.53 | — | 18.26 | 18.67 |
| Feb 18, 2011 | 6.69 | 19.34 | 8.79 | — | 43.91 | — |
| Feb 19, 2010 | 4.98 | 20.40 | 6.35 | — | 18.20 | — |
| Feb 20, 2009 | — | 17.00 | 5.49 | — | 17.28 | 5.65 |
| Feb 22, 2008 | 9.65 | 32.64 | 10.88 | — | 21.19 | — |
| Feb 23, 2007 | 18.38 | 39.28 | 17.88 | — | 24.04 | — |
Based on: 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).