Price to Operating Profit (P/OP)
since 2005
Calculation
Abiomed 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| May 20, 2022 | 76.33 | = | 235.75 | ÷ | 3.09 | 3.09 | = | 140,720 | ÷ | 45,563,937 | |
| May 21, 2021 | 55.25 | = | 280.00 | ÷ | 5.07 | 5.07 | = | 229,557 | ÷ | 45,295,979 | |
| May 21, 2020 | 35.41 | = | 196.32 | ÷ | 5.54 | 5.54 | = | 249,219 | ÷ | 44,956,959 | |
| May 23, 2019 | 52.72 | = | 262.64 | ÷ | 4.98 | 4.98 | = | 224,812 | ÷ | 45,124,729 | |
| May 24, 2018 | 111.65 | = | 394.46 | ÷ | 3.53 | 3.53 | = | 157,137 | ÷ | 44,477,837 | |
| May 25, 2017 | 66.06 | = | 135.88 | ÷ | 2.06 | 2.06 | = | 90,138 | ÷ | 43,819,330 | |
| May 26, 2016 | 64.85 | = | 98.80 | ÷ | 1.52 | 1.52 | = | 65,104 | ÷ | 42,735,136 | |
| May 28, 2015 | 88.19 | = | 60.57 | ÷ | 0.69 | 0.69 | = | 28,666 | ÷ | 41,737,054 | |
| May 28, 2014 | 103.65 | = | 21.71 | ÷ | 0.21 | 0.21 | = | 8,363 | ÷ | 39,926,903 | |
| May 28, 2013 | 51.91 | = | 22.17 | ÷ | 0.43 | 0.43 | = | 16,543 | ÷ | 38,735,227 | |
| Jun 4, 2012 | 512.24 | = | 19.77 | ÷ | 0.04 | 0.04 | = | 1,520 | ÷ | 39,383,341 | |
| Jun 2, 2011 | — | = | 17.81 | ÷ | -0.29 | -0.29 | = | -11,185 | ÷ | 38,482,962 | |
| Jun 8, 2010 | — | = | 9.55 | ÷ | -0.67 | -0.67 | = | -25,076 | ÷ | 37,433,189 | |
| Jun 8, 2009 | — | = | 7.43 | ÷ | -0.79 | -0.79 | = | -29,518 | ÷ | 37,350,501 | |
| Jun 16, 2008 | — | = | 19.80 | ÷ | -1.11 | -1.11 | = | -36,487 | ÷ | 32,956,535 | |
| Jun 13, 2007 | — | = | 11.23 | ÷ | -0.88 | -0.88 | = | -28,511 | ÷ | 32,439,174 | |
| Jun 14, 2006 | — | = | 12.66 | ÷ | -1.14 | -1.14 | = | -30,291 | ÷ | 26,532,524 | |
| Jun 14, 2005 | — | = | 9.25 | ÷ | -0.12 | -0.12 | = | -3,253 | ÷ | 26,153,672 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Abiomed Inc. Annual Report.
A significant transition in financial performance occurred between 2005 and 2022, characterized by a shift from consistent operating losses to sustained profitability and subsequent valuation volatility.
- Profitability Transition
- From 2005 through 2011, operating profit per share remained negative, reaching a low of -1.14 in 2006. A pivotal shift occurred in 2012, marking the first instance of positive operating profit per share at 0.04. This profitability trend intensified through 2020, where operating profit per share peaked at 5.54, before experiencing a decline to 3.09 by 2022.
- Price to Operating Profit (P/OP) Dynamics
- The P/OP ratio was not applicable during the period of operating losses. Upon the transition to profitability in 2012, the ratio appeared exceptionally high at 512.24, reflecting a market valuation that far exceeded the initial modest operating gains. From 2013 to 2017, the ratio normalized, generally fluctuating between 51.91 and 103.65.
- Valuation Peaks and Corrections
- A secondary peak in the P/OP ratio occurred in 2018 at 111.65, coinciding with the historical peak in share price of 394.46. Following this peak, a significant compression in the ratio was observed, reaching a low of 35.41 in 2020. This compression occurred despite operating profit per share reaching its maximum value in the same year, suggesting a decoupling of share price growth from operating profit growth during this period.
- Recent Valuation Trends
- Between 2020 and 2022, the P/OP ratio trended upward from 35.41 to 76.33. This increase occurred despite a decline in operating profit per share, which fell from 5.54 in 2020 to 3.09 in 2022, indicating that the share price remained relatively resilient compared to the decrease in operating performance.
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Comparison to Competitors
Abiomed Inc., P/OP, long-term trends, comparison to competitors
| Abiomed Inc. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| May 20, 2022 | 76.33 | 22.18 | 54.49 | 20.48 | 15.89 |
| May 21, 2021 | 55.25 | 24.45 | 56.11 | 37.44 | 18.77 |
| May 21, 2020 | 35.41 | 40.69 | 88.37 | 26.29 | 14.12 |
| May 23, 2019 | 52.72 | 34.03 | 48.89 | 21.26 | 14.40 |
| May 24, 2018 | 111.65 | 36.64 | 49.87 | 17.64 | 14.58 |
| May 25, 2017 | 66.06 | 60.88 | 44.40 | 22.64 | 14.42 |
| May 26, 2016 | 64.85 | 24.25 | 28.93 | 22.18 | 11.79 |
| May 28, 2015 | 88.19 | 19.80 | 27.25 | 28.81 | 9.59 |
| May 28, 2014 | 103.65 | 27.50 | 34.42 | 16.68 | 10.12 |
| May 28, 2013 | 51.91 | 22.79 | 17.96 | 11.80 | 7.22 |
| Jun 4, 2012 | 512.24 | 6.82 | 26.21 | — | 6.32 |
| Jun 2, 2011 | — | 15.35 | 27.83 | — | 6.55 |
| Jun 8, 2010 | — | 11.92 | 23.28 | — | 5.90 |
| Jun 8, 2009 | — | 13.54 | 33.47 | — | 5.95 |
| Jun 16, 2008 | — | 14.66 | 14.45 | — | 6.59 |
| Jun 13, 2007 | — | 18.76 | 55.84 | — | 7.62 |
| Jun 14, 2006 | — | 40.49 | 38.98 | — | 10.47 |
| Jun 14, 2005 | — | 15.48 | 50.21 | — | 14.87 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).