Price to Operating Profit (P/OP)
since 2005
Calculation
Allergan PLC, P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 18, 2020 | — | = | 198.00 | ÷ | -13.51 | -13.51 | = | -4,445,300 | ÷ | 329,002,015 | |
| Feb 15, 2019 | — | = | 139.07 | ÷ | -18.78 | -18.78 | = | -6,247,600 | ÷ | 332,614,474 | |
| Feb 16, 2018 | — | = | 164.04 | ÷ | -17.93 | -17.93 | = | -5,921,200 | ÷ | 330,320,420 | |
| Feb 24, 2017 | — | = | 245.37 | ÷ | -5.45 | -5.45 | = | -1,825,500 | ÷ | 335,224,713 | |
| Feb 26, 2016 | — | = | 298.07 | ÷ | -7.64 | -7.64 | = | -3,014,500 | ÷ | 394,687,384 | |
| Feb 18, 2015 | — | = | 284.00 | ÷ | -4.76 | -4.76 | = | -1,267,700 | ÷ | 266,252,295 | |
| Feb 25, 2014 | — | = | 225.00 | ÷ | -2.43 | -2.43 | = | -423,200 | ÷ | 174,199,744 | |
| Feb 28, 2013 | 33.93 | = | 85.16 | ÷ | 2.51 | 2.51 | = | 320,800 | ÷ | 127,832,241 | |
| Feb 16, 2012 | 14.30 | = | 60.31 | ÷ | 4.22 | 4.22 | = | 536,200 | ÷ | 127,165,346 | |
| Feb 22, 2011 | 22.62 | = | 54.90 | ÷ | 2.43 | 2.43 | = | 305,400 | ÷ | 125,827,379 | |
| Mar 1, 2010 | 12.91 | = | 40.12 | ÷ | 3.11 | 3.11 | = | 383,900 | ÷ | 123,516,219 | |
| Feb 23, 2009 | 8.50 | = | 29.10 | ÷ | 3.42 | 3.42 | = | 358,128 | ÷ | 104,627,327 | |
| Feb 25, 2008 | 11.43 | = | 28.19 | ÷ | 2.47 | 2.47 | = | 255,660 | ÷ | 103,657,619 | |
| Mar 1, 2007 | — | = | 25.71 | ÷ | -4.12 | -4.12 | = | -422,096 | ÷ | 102,500,489 | |
| Mar 10, 2006 | 15.01 | = | 29.55 | ÷ | 1.97 | 1.97 | = | 218,512 | ÷ | 111,029,721 |
Based on: 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 Allergan PLC Annual Report.
The financial performance from 2006 to 2020 is characterized by a stark divergence between share price appreciation and operational profitability. While the market valuation experienced significant growth over the first decade, the underlying operating profit per share underwent a severe contraction, eventually shifting into a sustained period of deficit.
- Share Price Evolution
- A long-term upward trajectory in share price is evident from 2006 through 2016, rising from 29.55 US$ to a peak of 298.07 US$. This period of growth was followed by a correction and subsequent volatility, with the price declining to 139.07 US$ by February 2019 before recovering to 198.00 US$ by February 2020.
- Operating Profit Per Share Trends
- Operational profitability remained generally positive between 2006 and 2013, despite a temporary deficit in 2007. However, a critical pivot occurred in 2014, marking the beginning of a continuous downward trend. Operating profit per share transitioned from a positive 2.51 US$ in 2013 to increasingly deep negative values, reaching a low of -18.78 US$ in 2019, indicating a substantial increase in operational losses over the latter half of the period.
- Price to Operating Profit (P/OP) Analysis
- During the years of positive profitability, the P/OP ratio exhibited significant volatility. The ratio decreased from 15.01 in 2006 to a low of 8.50 in 2009, before climbing sharply to a peak of 33.93 in 2013. From 2014 onward, the P/OP ratio is no longer calculable due to the persistence of negative operating profits, reflecting a fundamental shift in the company's financial structure where market valuation is no longer supported by current operating earnings.
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Comparison to Competitors
Allergan PLC, P/OP, long-term trends, comparison to competitors
| Allergan PLC | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Gilead Sciences Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|
| Feb 18, 2020 | — | 10.82 | 13.84 | 34.47 | 20.66 | 19.01 | 26.84 | 51.98 |
| Feb 15, 2019 | — | 18.35 | 11.46 | 23.18 | 10.15 | 17.53 | 27.33 | 74.57 |
| Feb 16, 2018 | — | 19.63 | 12.71 | 22.48 | 7.45 | 16.71 | 28.24 | 331.55 |
| Feb 24, 2017 | — | 10.49 | 12.64 | 21.37 | 5.23 | 28.70 | 25.13 | 2,143.58 |
| Feb 26, 2016 | — | 11.61 | 13.07 | 17.27 | 5.50 | 30.74 | 22.15 | — |
| Feb 18, 2015 | — | 28.64 | 19.13 | 17.94 | 10.19 | 49.17 | 20.63 | — |
| Feb 25, 2014 | — | 14.31 | 16.19 | 16.24 | 28.54 | 42.99 | 30.40 | — |
| Feb 28, 2013 | 33.93 | 10.44 | 12.22 | 13.40 | 16.28 | 35.11 | 17.92 | 4,319.80 |
| Feb 16, 2012 | 14.30 | — | 12.48 | 14.04 | 9.02 | — | 16.64 | 69.48 |
| Feb 22, 2011 | 22.62 | — | 8.79 | 15.14 | 7.82 | — | 17.09 | — |
| Mar 1, 2010 | 12.91 | — | 10.12 | 15.63 | 12.16 | — | 19.04 | — |
| Feb 23, 2009 | 8.50 | — | 9.70 | 8.85 | 15.24 | — | 12.33 | — |
| Feb 25, 2008 | 11.43 | — | 12.44 | 13.65 | 18.80 | — | 24.03 | — |
| Mar 1, 2007 | — | — | 19.54 | 14.52 | — | — | 79.09 | — |
| Mar 10, 2006 | 15.01 | — | 17.96 | 15.18 | 25.01 | — | 21.48 | — |
Based on: 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).