Teradyne Inc. (NASDAQ:TER)

The provided financial data reveals notable fluctuations and overall trends in share price, operating profit per share, and the price-to-operating-profit (P/OP) ratio over a 19-year period.

Share Price

The share price demonstrates a volatile yet generally upward long-term trend. Initially starting at $15.88 in 2006, the price declined sharply to a low of $3.93 in 2009. Subsequently, there was a recovery phase with intermittent fluctuations, with the price surpassing $40 by 2018. From 2020 onward, the share price experienced significant growth, peaking at $132.39 in 2021, before retreating to the $100 range in the following years up to 2024. This pattern suggests periods of market optimism interspersed with corrections or broader market influences.

Operating Profit Per Share (OPPS)

Operating profit per share shows considerable variability, including negative values in several early years (2006, 2009, 2010), which indicates periods of operating losses. Starting with -$0.41 in 2006, the company recorded positive OPPS in most years after 2006, albeit with some intermittent decreases or losses (notably in 2017 with -$0.30). From 2018 onwards, there is a clear trend of improving operating profitability, rising to a peak of $7.39 in 2022 before declining to $3.27 in 2024. This trend reflects an overall strengthening in operational efficiency or earnings generation despite some recent softness.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio exhibits high volatility and several notable absences of data points. It tends to be elevated during periods when operating profit margins are low or negative, for example, reaching as high as 50.64 in 2008 and 43.64 in 2014, reflecting a relatively high share price compared to operating profits or uncertainty regarding profitability. In contrast, periods with stronger operating profits typically coincide with lower P/OP ratios, as seen in years such as 2011 and 2012 with ratios in the 8 to 13 range. The sharp rises and falls in this multiple highlight market sensitivity to operating earnings fluctuations and possibly changes in investor sentiment or expectations.

In summary, the data indicates that after a challenging period around the 2008-2009 financial crisis, the entity managed to enhance its operational profitability and market valuation considerably, especially from 2018 onward. However, operating profit per share and market valuation multiples remain subject to fluctuations, underscoring ongoing volatility in operational performance and market perception.