AmerisourceBergen Corp. (NYSE:ABC)

The share price demonstrates an overall upward trajectory from 2005 to 2022, starting at $20.36 and reaching $164.71 by 2022. Notable fluctuations are observed, with a significant dip in 2008 to $14.89 during the financial crisis period, followed by a steady recovery and substantial growth from 2012 onwards. The period between 2013 and 2015 shows rapid appreciation in share price, peaking near $98.5 in 2015, before experiencing a decline in 2016 and 2017. From 2018 onwards, the share price regains momentum and continues to rise, reflecting increased market valuation.

Operating profit per share exhibits growth from 2005, moving from $1.53 to a peak of $6.93 in 2016. However, this metric shows volatility, particularly a sharp decline to -$25.14 in 2020, which suggests a significant operational loss or extraordinary expenses impacting profitability in that fiscal year. Following this anomaly, operating profit per share rebounds to around $11.3 by 2021 and 2022, indicating a recovery in operational performance and a return to profitability at a level higher than previous years.

The price-to-operating profit ratio (P/OP) reveals fluctuating investor valuation relative to operational earnings. From 2005 through 2008, the ratio declines from 13.33 to 5.62, suggesting increasing operational profitability compared to share price. However, from 2009 onwards, the ratio generally increases, peaking in 2015 at 48.53, indicating that the share price was high relative to operating profits, possibly reflecting market optimism or future growth expectations. The absence of data for 2020 corresponds with the negative operating profit per share in that year, disrupting the P/OP calculation. Post-2020, the ratio stabilizes between 10 and 16, illustrating a more balanced relationship between share price and operational earnings.

In summary, the financial indicators demonstrate robust share price growth amidst variable operational profitability. The severe operational loss in 2020 stands out as an exceptional event, followed by strong recovery. The variations in the P/OP ratio reflect changing market sentiment and investor expectations over the years, with peaks potentially signaling periods of overvaluation relative to current operating profits.

Share Price Trend

Overall upward trend with volatility; low in 2008; significant growth post-2012; peaked in 2022 at $164.71.

Operating Profit Per Share

General growth with peaks around 2016; sharp negative value in 2020; strong rebound in 2021-2022.

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

Fluctuated significantly, declining early, peaking in 2015, absent in 2020 due to losses, then stabilizing.

Key Observations

2020 marked an exceptional operational loss; subsequent recovery in profitability and share price; investor valuation relative to operations varied over time indicating market sentiment changes.