Price to Operating Profit (P/OP)
since 2005
Calculation
Applied Materials 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 millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 13, 2024 | 17.52 | = | 169.35 | ÷ | 9.67 | 9.67 | = | 7,867 | ÷ | 813,684,638 | |
| Dec 15, 2023 | 17.58 | = | 161.95 | ÷ | 9.21 | 9.21 | = | 7,654 | ÷ | 831,067,105 | |
| Dec 16, 2022 | 11.35 | = | 104.73 | ÷ | 9.23 | 9.23 | = | 7,788 | ÷ | 844,139,722 | |
| Dec 17, 2021 | 18.85 | = | 146.15 | ÷ | 7.75 | 7.75 | = | 6,889 | ÷ | 888,513,248 | |
| Dec 11, 2020 | 18.50 | = | 88.30 | ÷ | 4.77 | 4.77 | = | 4,365 | ÷ | 914,344,189 | |
| Dec 13, 2019 | 16.36 | = | 59.87 | ÷ | 3.66 | 3.66 | = | 3,350 | ÷ | 915,304,098 | |
| Dec 13, 2018 | 6.74 | = | 33.71 | ÷ | 5.00 | 5.00 | = | 4,796 | ÷ | 958,606,093 | |
| Dec 15, 2017 | 14.35 | = | 52.54 | ÷ | 3.66 | 3.66 | = | 3,868 | ÷ | 1,056,340,714 | |
| Dec 15, 2016 | 16.54 | = | 33.06 | ÷ | 2.00 | 2.00 | = | 2,152 | ÷ | 1,076,570,134 | |
| Dec 9, 2015 | 12.92 | = | 19.03 | ÷ | 1.47 | 1.47 | = | 1,693 | ÷ | 1,149,133,389 | |
| Dec 17, 2014 | 19.66 | = | 24.46 | ÷ | 1.24 | 1.24 | = | 1,520 | ÷ | 1,221,471,983 | |
| Dec 4, 2013 | 46.30 | = | 16.61 | ÷ | 0.36 | 0.36 | = | 432 | ÷ | 1,204,183,467 | |
| Dec 5, 2012 | 31.47 | = | 10.80 | ÷ | 0.34 | 0.34 | = | 411 | ÷ | 1,197,659,704 | |
| Dec 6, 2011 | 6.04 | = | 11.09 | ÷ | 1.84 | 1.84 | = | 2,398 | ÷ | 1,305,637,099 | |
| Dec 10, 2010 | 12.82 | = | 13.36 | ÷ | 1.04 | 1.04 | = | 1,384 | ÷ | 1,327,685,208 | |
| Dec 11, 2009 | — | = | 13.38 | ÷ | -0.29 | -0.29 | = | -394 | ÷ | 1,341,259,033 | |
| Dec 12, 2008 | 10.25 | = | 10.45 | ÷ | 1.02 | 1.02 | = | 1,355 | ÷ | 1,328,871,245 | |
| Dec 14, 2007 | 10.36 | = | 17.77 | ÷ | 1.72 | 1.72 | = | 2,372 | ÷ | 1,382,752,583 | |
| Dec 14, 2006 | 12.54 | = | 18.20 | ÷ | 1.45 | 1.45 | = | 2,021 | ÷ | 1,392,743,007 | |
| Dec 14, 2005 | 21.07 | = | 18.99 | ÷ | 0.90 | 0.90 | = | 1,448 | ÷ | 1,606,934,422 |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-10-25), 10-K (reporting date: 2014-10-26), 10-K (reporting date: 2013-10-27), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-25), 10-K (reporting date: 2008-10-26), 10-K (reporting date: 2007-10-28), 10-K (reporting date: 2006-10-29), 10-K (reporting date: 2005-10-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Applied Materials Inc. Annual Report.
The financial data reveals several important trends in share price, operating profit per share, and the price-to-operating-profit (P/OP) ratio over the examined years.
- Share Price
- The share price exhibited notable volatility within the timeframe. Initially, it remained relatively stable around the range of approximately $18 to $19 from 2005 through 2007, followed by a significant decline reaching a low of $10.45 in 2008 during the global financial crisis period. Thereafter, the share price generally trended upward, with pronounced growth from 2013 onward. The price peaked sharply at $146.15 in 2021, before experiencing a moderation to $104.73 in 2022 and subsequently rebounding above $160 in the final periods. Overall, despite some fluctuations, the share price showed strong recovery and growth in the latter years.
- Operating Profit Per Share (OPPS)
- The operating profit per share displayed a pattern with fluctuations but a clear upward trajectory over time. From a low of -$0.29 in 2009, the OPPS recovered steadily, with some intermittent declines in the following years. A marked increase began after 2013, where OPPS rose substantially from $1.24 to $9.67 by 2024. This suggests improved operational efficiency or profitability per share over the medium to long term, despite variability in earlier years.
- Price-To-Operating-Profit (P/OP) Ratio
- The P/OP ratio showed considerable variation, reflecting changes in market valuation relative to operating profit. Initially, this ratio declined steeply from 21.07 in 2005 to a low near 10 in 2007-2008, indicating a comparatively lower valuation against operating profit at that time. However, the ratio surged dramatically to 31.47 in 2012 and further peaked at 46.3 in 2013, a period when share price rose strongly despite modest operating profit. Post-2013, the ratio oscillated, trending lower in some years but generally remaining above 10. Such volatility may indicate shifting investor sentiment or changes in market expectations on profit sustainability.
In summary, the data points to an initial period of share price stability followed by a sharp decline and a subsequent recovery phase marked by strong price appreciation. Operating profit per share showed long-term improvement with some intermittent setbacks. The P/OP ratio's high fluctuation suggests the market's changing perception of the company’s profitability and growth prospects over the years, especially with periods of elevated valuations relative to operating profit.
Comparison to Competitors
Applied Materials Inc., P/OP, long-term trends, comparison to competitors
| Applied Materials Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Micron Technology Inc. | Monolithic Power Systems Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 13, 2024 | 17.52 | 95.53 | 53.48 | 76.87 | — | 24.29 | 86.94 | 51.38 | 51.16 | 19.08 | 30.49 |
| Dec 15, 2023 | 17.58 | 675.69 | 23.53 | 31.96 | 1,984.43 | 16.79 | — | 79.32 | 136.19 | 15.85 | 19.75 |
| Dec 16, 2022 | 11.35 | 100.42 | 26.16 | 16.33 | 49.91 | 11.79 | 5.93 | 43.38 | 66.12 | 7.95 | 16.29 |
| Dec 17, 2021 | 18.85 | 39.48 | 56.12 | 30.78 | 10.82 | 18.34 | 12.48 | 81.78 | 75.08 | 15.84 | 17.67 |
| Dec 11, 2020 | 18.50 | 75.77 | 33.76 | 44.04 | 9.72 | 20.40 | 19.51 | 111.71 | 66.40 | 23.32 | 26.53 |
| Dec 13, 2019 | 16.36 | 91.66 | 24.74 | 36.85 | 13.29 | 12.13 | 6.83 | 68.99 | 24.79 | 12.60 | 21.46 |
| Dec 13, 2018 | 6.74 | 51.38 | 17.62 | 19.42 | 9.40 | 8.67 | 3.20 | 51.50 | 45.61 | 103.26 | 15.00 |
| Dec 15, 2017 | 14.35 | 59.52 | 30.97 | 44.92 | 11.86 | 13.68 | 7.98 | 63.00 | 31.31 | 30.15 | 16.81 |
| Dec 15, 2016 | 16.54 | — | 21.85 | — | 13.40 | 13.46 | 106.63 | 67.63 | 23.80 | 15.26 | 16.07 |
| Dec 9, 2015 | 12.92 | — | 22.69 | 23.80 | 9.66 | 14.45 | 6.04 | 57.81 | 16.52 | 15.68 | 12.34 |
| Dec 17, 2014 | 19.66 | — | 23.01 | 59.05 | 10.60 | 16.98 | 11.23 | 60.28 | 19.66 | 17.00 | 15.64 |
| Dec 4, 2013 | 46.30 | 26.08 | 20.62 | 23.31 | 10.02 | 64.12 | 74.52 | 59.53 | 12.16 | 16.30 | 17.02 |
| Dec 5, 2012 | 31.47 | — | 14.67 | 13.51 | 7.13 | 26.84 | — | 51.86 | 14.06 | 17.43 | 19.14 |
| Dec 6, 2011 | 6.04 | 14.16 | 9.26 | 12.05 | 7.62 | 5.54 | 7.18 | 46.37 | 40.70 | 17.45 | 12.75 |
| Dec 10, 2010 | 12.82 | 7.42 | 11.93 | 13.69 | 7.79 | 10.92 | 4.84 | 17.49 | — | 22.51 | 9.25 |
| Dec 11, 2009 | — | 8.03 | 30.48 | 81.90 | 20.19 | — | — | 39.08 | — | 32.90 | 15.16 |
| Dec 12, 2008 | 10.25 | — | 7.90 | — | 7.50 | 9.41 | — | 19.47 | 13.27 | 14.67 | 8.01 |
| Dec 14, 2007 | 10.36 | — | 16.49 | — | 14.36 | 6.12 | — | 58.24 | 22.39 | 22.57 | 11.81 |
| Dec 14, 2006 | 12.54 | — | 20.89 | — | 21.27 | 14.39 | 30.18 | 336.88 | 24.63 | 22.34 | 13.27 |
| Dec 14, 2005 | 21.07 | 84.32 | 26.80 | — | 9.99 | 10.23 | 39.55 | 71.39 | 37.70 | 27.83 | 17.12 |
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30), 10-K (reporting date: 2015-10-25), 10-K (reporting date: 2014-10-26), 10-K (reporting date: 2013-10-27), 10-K (reporting date: 2012-10-28), 10-K (reporting date: 2011-10-30), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-25), 10-K (reporting date: 2008-10-26), 10-K (reporting date: 2007-10-28), 10-K (reporting date: 2006-10-29), 10-K (reporting date: 2005-10-30).