Price to Operating Profit (P/OP)
since 2005
Calculation
Express Scripts Holding Co., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2018 | 8.08 | = | 78.64 | ÷ | 9.74 | 9.74 | = | 5,494,000 | ÷ | 564,347,000 | |
| Feb 14, 2017 | 8.29 | = | 69.63 | ÷ | 8.40 | 8.40 | = | 5,087,800 | ÷ | 605,720,000 | |
| Feb 16, 2016 | 10.57 | = | 68.65 | ÷ | 6.50 | 6.50 | = | 4,339,300 | ÷ | 668,046,000 | |
| Feb 23, 2015 | 17.50 | = | 86.72 | ÷ | 4.96 | 4.96 | = | 3,602,400 | ÷ | 726,898,000 | |
| Feb 20, 2014 | 16.85 | = | 77.12 | ÷ | 4.58 | 4.58 | = | 3,551,700 | ÷ | 776,032,000 | |
| Feb 19, 2013 | 16.75 | = | 56.98 | ÷ | 3.40 | 3.40 | = | 2,784,500 | ÷ | 818,499,000 | |
| Feb 22, 2012 | 10.81 | = | 51.63 | ÷ | 4.77 | 4.77 | = | 2,314,400 | ÷ | 484,778,000 | |
| Feb 16, 2011 | 14.65 | = | 57.42 | ÷ | 3.92 | 3.92 | = | 2,070,900 | ÷ | 528,284,000 | |
| Feb 24, 2010 | 16.12 | = | 43.88 | ÷ | 2.72 | 2.72 | = | 1,498,400 | ÷ | 550,596,000 | |
| Feb 25, 2009 | 11.11 | = | 28.73 | ÷ | 2.59 | 2.59 | = | 1,280,500 | ÷ | 495,352,000 | |
| Feb 21, 2008 | 15.43 | = | 32.38 | ÷ | 2.10 | 2.10 | = | 1,061,000 | ÷ | 505,616,000 | |
| Feb 8, 2007 | 11.95 | = | 18.15 | ÷ | 1.52 | 1.52 | = | 824,100 | ÷ | 542,544,000 | |
| Feb 23, 2006 | 20.17 | = | 22.15 | ÷ | 1.10 | 1.10 | = | 643,000 | ÷ | 585,484,088 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Express Scripts Holding Co. Annual Report.
- Share Price Trend
- The share price exhibited significant fluctuations over the analyzed period. Starting at $22.15 in early 2006, the price declined to a low of $18.15 in 2007 before experiencing a pronounced upward trend. This rise peaked notably at $86.72 in early 2015, indicating strong market confidence or operational performance during those years. Following this peak, the price experienced some volatility, decreasing to $68.65 in 2016 and remaining relatively stable around the high 60s to upper 70s range through early 2018.
- Operating Profit Per Share (OPPS) Development
- Operating profit per share demonstrated a consistent and robust growth trajectory across the time span. Beginning at $1.10 in 2006, OPPS nearly doubled by 2009 to $2.59 and continued rising steadily thereafter. A slight dip occurred in 2013 at $3.40, but this was followed by renewed growth reaching a peak of $9.74 in early 2018. This upward trend reflects improved profitability at the operational level, suggesting enhanced efficiency or revenue growth.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed substantial variability, reflecting changing market valuations relative to operational earnings. Initially high at 20.17 in 2006, the ratio declined sharply to 8.08 by early 2018, indicating that the share price's growth outpaced the operating profit per share increases in early years, but gradually the operating profits gained more weight in valuation. The notable dip, especially post-2011, implies an improving earnings base or a market undervaluation relative to profits. Overall, the trend suggests a shift towards a more favorable valuation based on operational earnings over time.
- Overall Insights
- The data reveals a company that improved operational profitability significantly throughout the period, with operating profit per share increasing almost ninefold from 2006 to 2018. The share price trend, albeit more volatile, generally followed an upward trajectory consistent with improved financial performance, with periods of volatility likely tied to external market conditions or internal company developments. The decreasing P/OP ratio indicates that investors might have gained greater confidence in the sustainability and quality of earnings, or the market became more conservative in valuing the company’s operating profits. Together, these trends imply a maturation in financial health and market perception over the period analyzed.
Comparison to Competitors
Express Scripts Holding Co., P/OP, long-term trends, comparison to competitors
| Express Scripts Holding Co. | Abbott Laboratories | CVS Health Corp. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Feb 27, 2018 | 8.08 | 60.88 | 7.44 | 44.40 | 22.64 | 14.42 |
| Feb 14, 2017 | 8.29 | 24.25 | 7.65 | 28.93 | 22.18 | 11.79 |
| Feb 16, 2016 | 10.57 | 19.80 | 10.49 | 27.25 | 28.81 | 9.59 |
| Feb 23, 2015 | 17.50 | 27.50 | 13.00 | 34.42 | 16.68 | 10.12 |
| Feb 20, 2014 | 16.85 | 22.79 | 10.12 | 17.96 | 11.80 | 7.22 |
| Feb 19, 2013 | 16.75 | 6.82 | 8.71 | 26.21 | — | 6.32 |
| Feb 22, 2012 | 10.81 | 15.35 | 9.11 | 27.83 | — | 6.55 |
| Feb 16, 2011 | 14.65 | 11.92 | 7.34 | 23.28 | — | 5.90 |
| Feb 24, 2010 | 16.12 | 13.54 | 7.29 | 33.47 | — | 5.95 |
| Feb 25, 2009 | 11.11 | 14.66 | 6.20 | 14.45 | — | 6.59 |
| Feb 21, 2008 | 15.43 | 18.76 | 12.09 | 55.84 | — | 7.62 |
| Feb 8, 2007 | 11.95 | 40.49 | 10.68 | 38.98 | — | 10.47 |
| Feb 23, 2006 | 20.17 | 15.48 | 12.37 | 50.21 | — | 14.87 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 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), 10-K (reporting date: 2005-12-31).