Air Products & Chemicals Inc. (NYSE:APD)

The analysis reveals distinct trends in the share price, operating profit per share, and the price-to-operating-profit (P/OP) ratio over the period from 2005 to 2020.

Share Price

The share price exhibited considerable fluctuation across the years. Initially, it increased steadily from $60.43 in 2005 to a peak of $96.78 in 2007, followed by a sharp decline to $46.50 in 2008. This decline likely reflects broader market conditions during that period. Subsequently, a general upward trend was observed, with the share price rising from $83.34 in 2009 to $270.36 in 2020. Notably, the rise from 2013 onwards was pronounced, with consistent annual gains and a substantial peak by 2020.

Operating Profit Per Share

The operating profit per share showed relatively steady growth over the entire period with some volatility. Starting at $4.51 in 2005, it increased to $7.14 in 2008 despite the concurrent drop in share price, indicating operational resilience. There was a dip to $4.00 in 2009, after which a recovery and sustained growth occurred, reaching $10.12 by 2020. The fluctuations suggest varying operational efficiencies or external economic effects impacting profitability each year.

Price-to-Operating-Profit (P/OP) Ratio

The P/OP ratio demonstrated significant variability, highlighting changes in market valuation relative to operating profit growth. Initially around 13.39 in 2005, it remained relatively stable until 2007 before sharply dropping to 6.51 in 2008, possibly reflecting the sharp decline in share price relative to operating profits. Subsequently, the ratio increased, reaching peaks such as 24.68 in 2017 and 26.71 in 2020, indicating the market's willingness to attribute a higher valuation to each dollar of operating profit in later years. This increasing P/OP ratio may suggest rising investor confidence or expectations for future growth, despite a more moderate increase in operating profits.

In summary, while operating profit per share rose steadily, the share price experienced greater volatility but trended sharply upward in the latter years. The P/OP ratio's fluctuations indicate changing market sentiment and valuation approaches over time, with a notable premium placed on operating profits in the most recent years of the data.