CVS Health Corp. (NYSE:CVS)

The analysis of the financial trends reveals several key patterns over the observed periods.

Share Price

The share price exhibited overall growth from 30.57 US$ in March 2006 to a peak of 104.79 US$ in February 2021. The trend shows a significant increase especially from 2012 through 2021, peaking in 2021 before experiencing a decline to 63.22 US$ by February 2025. This indicates periods of both strong investor confidence and subsequent retrenchment in recent years.

Operating Profit Per Share

The operating profit per share demonstrated consistent growth from 2.47 US$ in 2006 to 10.61 US$ in 2021, with some fluctuations. Notably, there was a dip to 3.10 US$ in 2019, followed by a recovery to above 10 US$ in 2021. After 2021, values declined but remained relatively strong, indicating overall operational profitability improvement with short-term volatility.

Price to Operating Profit Ratio (P/OP)

This ratio reflects market valuation relative to operating profit. It started at 12.37 in 2006, fluctuating in the range of approximately 6.20 to 14.75 in subsequent years. A notable low of 6.20 occurred in 2009, suggesting undervaluation or improved profitability. The ratio peaked at 18.65 in 2019, indicating an overvaluation relative to operational earnings or reduced earnings during that period. Toward 2025, the ratio settled around 9.36, reflecting a moderate valuation relative to operating profit.

In summary, the data indicates steady growth in operating profitability per share, with some volatility impacting market valuation as seen in share prices and P/OP ratio fluctuations. The share price tends to react more sharply to changes in operational performance and market sentiment, as evidenced by periods of growth and decline especially post-2018. The divergence in 2019 with a high P/OP ratio and low operating profit suggests a temporal disconnect between price and profitability. Overall, operational earnings appear to be the primary driver of long-term valuation trends.