Qualcomm Inc. (NASDAQ:QCOM)

The share price of the company exhibited a generally upward trend over the analyzed period, increasing from $40.38 in late 2005 to $172.99 by early November 2024. Despite this overall growth, there were intermittent periods of volatility and decline. Notable decreases in price occurred around late 2014, late 2017, and late 2022, indicating moments of market correction or company-specific challenges.

Operating profit per share (OPPS) showed a positive long-term progression, rising from $1.45 in late 2005 to a peak value of $14.15 in late 2022 before experiencing a drop to $7.00 in late 2023, followed by a rebound to $9.06 in late 2024. This suggests variability in profitability, with some periods marked by weaker performance, such as the dips noted in 2013 and 2018, but an overall tendency toward improved operating earnings per share over the years.

The Price to Operating Profit (P/OP) ratio demonstrated significant fluctuations, reflecting changing market valuations relative to operating profit. Early years saw ratios in the 20s, with a notable dip to a low of 7.95 in late 2022, indicating potentially undervalued conditions relative to operating profit at that time. Conversely, an extraordinary spike in this ratio occurred in late 2018, exceeding 100, which may imply an extreme market overvaluation or anomalous profit figures during that period. Generally, the P/OP ratio’s volatility suggests shifts in investor sentiment and the market’s reassessment of the company's earnings capacity at various times.

In summary, the company’s financial indicators reveal a pattern of growth in share price and operating profitability over nearly two decades, albeit with periodic fluctuations that highlight phases of both market optimism and caution. The oscillations in the P/OP ratio further underscore the dynamic evaluation of the company’s earnings power by the market, with distinct episodes of significant divergence between share price and operating profit metrics.

Share Price

Overall increasing trend from $40.38 to $172.99 over the period, with intermittent declines in 2014, 2017, and 2022.

Operating Profit Per Share

Growth from $1.45 to $14.15 by 2022, followed by a drop to $7.00 then partial recovery, reflecting variable profitability.

Price to Operating Profit Ratio (P/OP)

Marked volatility ranging from lows around 7.95 to a peak above 100, indicating variable market valuations against operating profit performance.