Paramount Global (NASDAQ:PARA)

The financial data reveals several notable trends over the analyzed periods. The share price experienced significant volatility, showing an initial increase from 24.22 US$ in March 2006 to a peak of 29.97 US$ in March 2007, followed by a sharp decline to 4.98 US$ in February 2009. Post-2009, the share price demonstrated a generally upward trend, reaching its highest level of 65.6 US$ in February 2021. However, after this peak, the share price declined steadily to 23.5 US$ in February 2023.

Operating profit per share (OPPS) also exhibited considerable fluctuations. There was a negative figure of -8.83 US$ in 2006, transitioning to positive results from 2007 onwards, with some erratic movements such as a substantial drop to -17.9 US$ in 2009. From 2010, OPPS gradually improved and stabilized around values between 5 and 7 US$ until 2021, where a peak of 9.71 US$ was recorded. In the most recent period, there was a significant decrease to 3.6 US$ in 2023.

The price-to-operating-profit (P/OP) ratio, which helps assess the valuation of the stock relative to its operating profit, also changed dynamically. It was missing in the initial period but then maintained within a moderate range between 3.71 and 11.83 over the years. Notably, the P/OP ratio declined sharply to 3.71 in 2022, indicating a lower market price relative to operating profit at that time, before rising again to 6.53 in 2023, reflecting a revaluation or shift in investor expectations.

Overall, the data highlights a period of financial instability around 2008-2009, with substantial negative operating profits and share price drops. Following this, there was a recovery and growth phase lasting about a decade, characterized by improved profitability and increasing share prices. The latest trend points towards heightened volatility with declining share price and operating profit in recent years, suggesting increased uncertainty or challenges in maintaining profitability at prior levels.

Share Price Trend

Initial growth until 2007, sharp decline in 2009, recovery and growth until 2021 peak, followed by steady decline through 2023.

Operating Profit per Share

Negative and volatile before 2010, stable improvement from 2010 to 2021, with a peak in 2021, then a notable drop in 2023.

Price to Operating Profit Ratio (P/OP)

Moderate fluctuations with a noteworthy dip in 2022 indicating undervaluation relative to profits, rising again in 2023.

Overall Insight

Periods of financial distress followed by long-term recovery and recent increased volatility, signaling potential risks or changes in operating performance and market sentiment.