Expand Energy Corp. (NASDAQ:EXE)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio shows a consistent upward trend over the observed periods. Starting at 1.33 in 2021, it increased to 2.21 in 2022 and further rose significantly to 4.53 in 2023. This increasing P/E ratio indicates that the market valuation relative to earnings has become more expensive, suggesting either higher investor confidence in future earnings growth or potential overvaluation. Data for 2024 is not available, so trends for that year cannot be determined.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio experienced a sharp decline from 11.94 in 2021 to 2.84 in 2022, indicating a substantial decrease in the market price relative to operating profits. This could reflect improved operating profitability or a decline in market valuation. The ratio slightly increased to 3.49 in 2023, signaling some recovery in valuation or a reduction in operating profit. The absence of 2024 data limits further analysis for that year.

Price to Sales (P/S) Ratio

The Price to Sales ratio exhibited a generally upward trend across the periods. It declined from 1.15 in 2021 to 0.76 in 2022, indicating decreased market valuation against sales. However, the figure then increased substantially to 1.81 in 2023 and showed a pronounced rise to 5.6 in 2024. This sharp increase in 2024 signifies a significant growth in market valuation relative to sales, which may reflect positive market sentiment or expectations of strong future sales growth.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio declined gradually from 1.48 in 2021 to 1.18 in 2022 and further to 1.02 in 2023, indicating a decrease in market valuation relative to the book value of the company. However, in 2024, a moderate increase to 1.36 was observed, which may indicate a partial recovery in market confidence or an improved perception of asset value. Overall, the ratio remained near or slightly above 1, suggesting the market values the company approximately in line with its book value.

The financial data of the company over the four-year period reveals several notable trends and shifts in its market valuation and profitability metrics.

Share Price

The share price exhibited a continuous and substantial upward trajectory from 2021 through 2024. Beginning at $70.91 at the end of 2021, it increased to $79.7 in 2022, then to $83.85 in 2023, and finally to a significantly higher value of $102.43 by the end of 2024. This steady increase indicates growing investor confidence or positive market expectations despite other financial challenges observed in earnings.

Earnings per Share (EPS)

The EPS demonstrated a contrasting and declining trend over the same period. Starting at a relatively high level of $53.37 in 2021, earnings per share decreased sharply to $36.14 in 2022. The downward trend continued in 2023, dropping further to $18.49, before turning negative at -$3.07 in 2024. The consistent decline culminating in negative earnings indicates a deterioration in the company’s profitability and possibly operational difficulties or increased expenses overshadowing revenue.

Price-to-Earnings (P/E) Ratio

The P/E ratio increased from 1.33 in 2021 to 2.21 in 2022, and then more than doubled to 4.53 in 2023. The value for 2024 is not available. The rising P/E ratio amidst falling EPS reflects a market valuation that is growing faster than earnings, suggesting that investors might be pricing in future growth potential or other qualitative factors despite declining current profitability. The absence of the 2024 P/E ratio is likely due to the negative EPS, which makes the P/E calculation non-meaningful.

In summary, the company’s market valuation based on share price continues to improve strongly even as earnings per share reduce markedly and eventually become negative. This divergence between market price trends and profitability metrics suggests that investor sentiment remains optimistic, possibly anticipating recovery or growth prospects that are not reflected in immediate earnings. The increasing P/E ratio underscores a market mood that values future potential over present earnings performance.

Share Price

The share price exhibited a consistent upward trend over the four-year period. Beginning at $70.91 at the end of 2021, it increased steadily each year, reaching $79.70 in 2022, $83.85 in 2023, and peaking at $102.43 by the end of 2024. This reflects a significant appreciation in market value over the period analyzed.

Operating Profit Per Share

The operating profit per share showed considerable volatility. In 2021, it stood at $5.94 and then experienced a substantial increase to $28.06 in 2022. However, it declined to $24.02 in 2023 and turned negative to -$3.45 in 2024, indicating a deterioration in operational profitability during the final year.

Price to Operating Profit Ratio (P/OP)

The price to operating profit ratio demonstrated a marked decrease from 11.94 in 2021 to 2.84 in 2022, reflecting a relatively lower share price compared to operating profit or improved profitability relative to price. It increased slightly to 3.49 in 2023. The ratio for 2024 is not available, likely due to the negative operating profit per share in that year, which makes this ratio undefined or not meaningful.

Summary of Trends and Insights

While the share price consistently increased during the entire period, operational performance as measured by operating profit per share was highly variable, culminating in a loss in 2024. This divergence suggests that market expectations or external factors may have influenced the share price despite weakening operational profitability. The price to operating profit ratio supports this interpretation, showing lower valuations relative to profits in 2022 and 2023, yet the absence of a meaningful ratio in 2024 highlights the negative earnings impact that year. Overall, the data signals potential concerns regarding sustainable profitability despite strong market valuation growth.

Share Price

The share price shows a consistent upward trend over the observed periods, increasing from $70.91 at the end of 2021 to $102.43 by the end of 2024. This represents a strong overall growth, with particularly notable acceleration in the last period.

Sales per Share

Sales per share exhibit significant volatility across the years. After rising sharply from $61.58 in 2021 to $104.83 in 2022, sales per share declined substantially in the subsequent years, dropping to $46.23 in 2023 and further down to $18.30 in 2024. This sharp decrease contrasts with the upward share price trend, suggesting changing underlying revenue dynamics or one-time effects impacting sales figures.

Price-to-Sales (P/S) Ratio

The P/S ratio fluctuates notably. It decreased from 1.15 in 2021 to 0.76 in 2022, indicating the share price was relatively low compared to sales in that year. The ratio then surged to 1.81 in 2023 and dramatically increased to 5.6 in 2024. Such an increase in the P/S ratio, especially when sales per share are declining, implies that investors are valuing the company at a much higher premium relative to its sales, potentially reflecting strong market expectations of future growth or other value drivers beyond current sales performance.

Overall Analysis

The disconnect between the declining sales per share and the rising share price and P/S ratio suggests that market sentiment is increasingly optimistic despite weakening sales metrics. This could point to investor confidence in the company's strategic direction, potential new projects, or other factors not captured by immediate sales figures. However, the sharp contraction in sales per share raises questions about short-term revenue stability that should be monitored closely.

The presented financial data for the specified periods reveals noteworthy trends in the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio.

Share Price

The share price shows a consistent upward trend across the four reported years. Starting at $70.91 in 2021, it increased to $79.70 in 2022, then to $83.85 in 2023, and reached a notable peak of $102.43 by the end of 2024. This progression suggests growing market confidence and potentially improving business prospects or investor perceptions over the period.

Book Value Per Share (BVPS)

BVPS similarly trends upward from $47.83 in 2021 to $67.73 in 2022 and continues to rise to $82.03 in 2023. However, there is a decline in 2024 to $75.48. This decline could signify some challenges such as asset write-downs, increased liabilities, or dividend distributions exceeding earnings, which warrant further analysis. Nonetheless, the overall increase over the four years reflects asset growth and an enhanced equity base for most of the period.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio decreases from 1.48 in 2021 down to 1.02 by the end of 2023, indicating that the share price grew at a slower pace relative to book value during this time or that the market adjusted its valuation multiples downward. However, in 2024, the P/BV ratio rises again to 1.36, reflecting a quicker increase in share price relative to book value. This suggests renewed investor optimism or an increase in market valuation premium relative to net asset value.

Overall, the data indicates a generally positive market valuation trend driven by rising share prices and growing book values, albeit with a slight contraction in book value during the final year. The fluctuation in the P/BV ratio reveals shifting investor sentiment and valuation perceptions over time, with the market initially becoming more conservative in assessing the company’s net asset value before regaining a higher valuation multiple in the latest period.