AT&T Inc. (NYSE:T)

The share price exhibits considerable fluctuations over the analyzed periods. From 2006 to 2007, there is a notable increase from $28.09 to $37.50, followed by a moderate decline and fluctuations through subsequent years. The price peaks again around 2012 and 2013, reaching approximately the mid-$30 range, then declines steadily from 2015 onward, hitting a low near $16.80 in 2024 before rebounding to $25.36 in 2025. These patterns suggest cycles of volatility with periods of growth and contraction.

The operating profit per share (OPPS) shows significant variability, with an initial increase from $1.59 in 2006 to a peak of $5.85 in 2014. This peak is followed by dramatic declines and rebounds, including a negative value of -$0.64 in 2023, indicating an operational loss that year. The sharp drop to $0.90 in 2021 and recovery to $3.28 in 2024 demonstrate instability in profitability at the per-share level, likely reflecting operational challenges or restructuring activities during those years.

The price to operating profit ratio (P/OP) fluctuates markedly, inversely reflecting the changes in operating profit per share against share price movements. It starts at 17.67 in 2006, reaching a high of 31.88 in 2021, which correlates with the sharp decline in operating profit per share at that time, suggesting that the stock was relatively expensive compared to its operating earnings. Conversely, lower ratios such as 5.12 in 2024 occur when operating profit per share recovers while the share price remains depressed, indicating potential undervaluation or market uncertainty.

Overall, the data reveal a cyclical pattern of share price and operating profit per share, with considerable volatility in operating performance impacting valuation multiples. The sharp fluctuations in operating profit per share, including a negative value, highlight periods of operational difficulty. Correspondingly, valuation ratios reflect investor response to these profitability trends over time.

Share Price Trends

General volatility with peaks in 2007 and 2012-2013, and lows around 2024, followed by partial recovery.

Operating Profit Per Share

Substantial fluctuations, a notable peak in 2014, a negative value in 2023, indicating operational challenges.

Price to Operating Profit Ratio

Variable ratio consistent with changes in operating profit and share price, highest in 2021, lowest in 2024.

Insights

Financial performance and stock valuation exhibit cycles of profitability and market correction, reflecting external conditions or internal strategic impacts.