Applied Materials Inc. (NASDAQ:AMAT)

The financial data over the periods analyzed exhibits notable fluctuations and trends in share price, operating profit per share, and the price-to-operating profit ratio.

Share Price

The share price begins at $18.99 and experiences a general upward trajectory with intermittent declines. Early years show stability around the $10 to $18 range, followed by significant appreciation starting in the early 2010s. A pronounced increase is observable from 2014 onwards, reaching a peak of $259.21 in the final period. Noteworthy volatility is evident, including periods of sharp increases such as the rise from $19.03 in 2015 to $52.54 in 2017, and from $104.73 in 2022 to $259.21 in the last period.

Operating Profit per Share (OPPS)

The operating profit per share shows a varied pattern. Beginning at $0.90, it generally increases with fluctuations. A significant downturn occurs in 2009, where OPPS turns negative (-$0.29), likely reflecting adverse operational conditions during that period. Subsequently, OPPS recovers and follows an upward trend from 2010 onwards, peaking at $9.67 in 2024, with only minor decreases in immediate subsequent years. The steady growth in OPPS suggests improved operational efficiency or profitability over time.

Price-to-Operating Profit Ratio (P/OP)

This ratio indicates the market valuation relative to operational earnings. Initially, it decreases sharply from 21.07 in 2005 to 6.04 in 2011, implying growing operating profits relative to share price or a share price undervaluation. However, from 2012 onwards, P/OP becomes more volatile, spiking to as high as 46.3 in 2013. The data reveals oscillations between values around 10 to 30, suggesting fluctuating market perceptions or earnings volatility. In the final periods, the ratio stabilizes moderately between approximately 17 and 25 despite rising share prices and stable or growing OPPS, reflecting a balance between market optimism and earnings growth.

Collectively, the data indicates a company overcoming challenges around 2009, followed by strengthening operational performance and increasing market valuation. While share price growth outpaces operating profit increases in some periods, resulting in higher valuation multiples, the overall upward trends in profits and prices justify this pattern. Volatility in valuation ratios points to changing investor sentiment and possible market adjustments over the analyzed timeline.