Price to Operating Profit (P/OP)
since 2005
Calculation
Albemarle Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating profit1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 15, 2023 | 12.94 | = | 272.79 | ÷ | 21.08 | 21.08 | = | 2,470,061 | ÷ | 117,197,977 | |
| Feb 22, 2022 | 28.12 | = | 191.85 | ÷ | 6.82 | 6.82 | = | 798,434 | ÷ | 117,036,615 | |
| Feb 19, 2021 | 36.01 | = | 156.17 | ÷ | 4.34 | 4.34 | = | 505,812 | ÷ | 116,632,439 | |
| Feb 26, 2020 | 13.66 | = | 85.65 | ÷ | 6.27 | 6.27 | = | 666,123 | ÷ | 106,206,157 | |
| Feb 27, 2019 | 10.71 | = | 92.28 | ÷ | 8.62 | 8.62 | = | 911,540 | ÷ | 105,753,864 | |
| Feb 28, 2018 | 18.91 | = | 100.43 | ÷ | 5.31 | 5.31 | = | 587,749 | ÷ | 110,638,449 | |
| Feb 28, 2017 | 19.89 | = | 101.51 | ÷ | 5.10 | 5.10 | = | 574,551 | ÷ | 112,566,316 | |
| Feb 29, 2016 | 14.26 | = | 56.22 | ÷ | 3.94 | 3.94 | = | 442,435 | ÷ | 112,250,676 | |
| Mar 2, 2015 | 23.43 | = | 56.68 | ÷ | 2.42 | 2.42 | = | 271,298 | ÷ | 112,155,745 | |
| Feb 25, 2014 | 8.77 | = | 64.28 | ÷ | 7.33 | 7.33 | = | 582,909 | ÷ | 79,497,921 | |
| Feb 15, 2013 | 14.31 | = | 65.42 | ÷ | 4.57 | 4.57 | = | 406,164 | ÷ | 88,836,443 | |
| Feb 22, 2012 | 10.01 | = | 66.19 | ÷ | 6.61 | 6.61 | = | 587,840 | ÷ | 88,937,768 | |
| Feb 25, 2011 | 12.64 | = | 57.24 | ÷ | 4.53 | 4.53 | = | 414,848 | ÷ | 91,633,335 | |
| Feb 26, 2010 | 18.38 | = | 37.49 | ÷ | 2.04 | 2.04 | = | 186,280 | ÷ | 91,314,008 | |
| Feb 27, 2009 | 8.00 | = | 19.35 | ÷ | 2.42 | 2.42 | = | 220,917 | ÷ | 91,377,788 | |
| Feb 29, 2008 | 11.19 | = | 37.94 | ÷ | 3.39 | 3.39 | = | 309,887 | ÷ | 91,407,676 | |
| Mar 1, 2007 | 21.98 | = | 40.98 | ÷ | 1.86 | 1.86 | = | 177,484 | ÷ | 95,174,444 | |
| Mar 15, 2006 | 12.71 | = | 22.05 | ÷ | 1.74 | 1.74 | = | 163,896 | ÷ | 94,462,906 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Albemarle Corp. Annual Report.
The financial trajectory from 2006 to 2023 is characterized by substantial long-term growth in both equity valuation and operational earnings, accompanied by significant volatility in the valuation multiple. While the share price and operating profit per share reached their peaks at the end of the observed period, the relationship between the two remained inconsistent, as evidenced by the fluctuating Price to Operating Profit (P/OP) ratio.
- Share Price Trends
- An overall upward trend is observed, with the share price rising from 22.05 US$ in 2006 to 272.79 US$ in 2023. Significant growth phases occurred between 2016 and 2017, and more aggressively between 2020 and 2023, where the price moved from 85.65 US$ to 272.79 US$.
- Operating Profit Performance
- Operating profit per share exhibited a general increase from 1.74 US$ in 2006 to 21.08 US$ in 2023. The most dramatic expansion occurred in the final year of the data set, where operating profit per share grew from 6.82 US$ in 2022 to 21.08 US$ in 2023, marking a significant leap in operational results.
- P/OP Ratio Volatility
- The P/OP ratio demonstrated considerable variance, reaching a minimum of 8.00 in 2009 and a maximum of 36.01 in 2021. The peak in 2021 indicates a period where market valuation heavily anticipated future growth, significantly exceeding current operating results. By 2023, the ratio contracted to 12.94; this compression occurred because the increase in operating profit per share grew at a faster rate than the share price during the 2022-2023 interval.
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Comparison to Competitors
Albemarle Corp., P/OP, long-term trends, comparison to competitors
| Albemarle Corp. | Linde plc | |
|---|---|---|
| Feb 15, 2023 | 12.94 | 31.93 |
| Feb 22, 2022 | 28.12 | 29.87 |
| Feb 19, 2021 | 36.01 | 39.58 |
| Feb 26, 2020 | 13.66 | 36.01 |
| Feb 27, 2019 | 10.71 | 16.21 |
| Feb 28, 2018 | 18.91 | 17.56 |
| Feb 28, 2017 | 19.89 | 15.33 |
| Feb 29, 2016 | 14.26 | 12.50 |
| Mar 2, 2015 | 23.43 | 14.24 |
| Feb 25, 2014 | 8.77 | 14.25 |
| Feb 15, 2013 | 14.31 | 13.64 |
| Feb 22, 2012 | 10.01 | 13.18 |
| Feb 25, 2011 | 12.64 | 14.13 |
| Feb 26, 2010 | 18.38 | 14.78 |
| Feb 27, 2009 | 8.00 | 9.67 |
| Feb 29, 2008 | 11.19 | 14.77 |
| Mar 1, 2007 | 21.98 | 13.01 |
| Mar 15, 2006 | 12.71 | 13.69 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).