ConocoPhillips (NYSE:COP)

Price to Earnings (P/E) Ratio

The P/E ratio exhibits a volatile trend initially, with no data available until the second quarter of 2021 when it reached an exceptionally high value of 3758.13, likely indicating an anomaly or extraordinary event. Subsequently, the ratio decreased sharply to 40.48 and then steadily declined through 2021 and 2022, reaching a low of 7.07 at the end of 2022. Throughout 2023 and into early 2024, the P/E ratio showed moderate fluctuations, increasing to around 13.5 by the end of 2023, and then slightly moderating to values around 11.75 to 13.41 in subsequent quarters. This pattern suggests an initial recovery and stabilization phase following the extreme spike, with the ratio settling to a more normalized range amid moderate fluctuations.

Price to Operating Profit (P/OP) Ratio

This ratio follows a similar pattern to the P/E ratio, starting very high at 71.79 in Q2 2021 before sharply decreasing to single digits by the end of 2021. The ratio continued a downward trend into early 2022, hitting as low as 4.57 in Q4 2022. From 2023 onwards, the P/OP ratio generally increased, reaching a peak of 8.7 in Q2 2024 before slightly declining again. These movements indicate improving operating profit relative to price over time, with some variability suggesting fluctuations in profitability or market valuation metrics.

Price to Sales (P/S) Ratio

The P/S ratio experienced a gradual decrease from 3.52 in Q2 2021 to a low of 1.56 in Q2 2023. After this period, there was a gradual increase with moderate oscillations, reaching values around 2.5 by the first quarter of 2024 but declining slightly afterward. This trend reflects an initial compression in sales valuation relative to price, followed by a mild recovery and stabilization phase, indicating possible changes in revenue or market perception.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows a more complex movement pattern, starting at 1.4 in Q1 2020 and declining slightly before rising sharply to a peak of 3.4 in Q3 2022. After reaching this maximum, the ratio declined substantially over the following quarters, dropping below 2.0 by Q1 2025. This suggests that the market’s valuation relative to book value initially increased, possibly due to growth expectations or asset revaluations, but later retracted, indicating a reduced premium on book value or adjustments in asset valuations.

Share Price Trend

The share price exhibited considerable volatility over the observed period. Initially, it declined from $40.92 in March 2020 to a low of $29.31 in September 2020. Subsequently, the price demonstrated a strong upward movement, reaching a peak of $133.82 in September 2022. After this peak, the share price experienced fluctuations but generally trended downward, settling at $88.82 by March 2025. The peak values from late 2021 to 2022 reflect a period of rapid share price appreciation.

Earnings Per Share (EPS) Pattern

EPS data, available from late 2020 onwards, shows a significant recovery and growth trend. EPS started at a negative value (-$1.99) in December 2020, indicating losses. Thereafter, a strong upward trend developed with EPS rising steadily to a high of $15.33 by December 2022. Post-2022, there is a noticeable decline in EPS, with values decreasing to $7.56 by March 2025. This suggests that while the company returned to profitability and growth initially, earnings growth decelerated and contracted moderately in the later periods.

Price to Earnings (P/E) Ratio Dynamics

The P/E ratio presented very high and erratic values initially, with an extreme ratio of 3758.13 in March 2021, reflecting the very low or near zero earnings base at that time. Following this peak, the ratio stabilized and decreased significantly, reaching single digits around late 2022 and early 2023, indicating an alignment of share price with improving earnings. However, from mid-2023 onwards, the P/E ratio showed moderate volatility, generally ranging between 11 and 14, reflecting market uncertainty or adjustment in investor expectations relative to EPS trends.

Overall Financial Insights

The data indicates the company faced significant challenges in early 2020, possibly reflected in low share prices and negative EPS. Recovery ensued, with substantial growth in earnings and share price peaking in 2022. The sharp rise in share price outpaced earnings growth initially, resulting in high P/E ratios, which normalized as earnings improved. The recent periods show some contraction in EPS alongside fluctuating share prices, suggesting a moderation in growth momentum and possibly increasing caution among investors.

The analysis of the quarterly financial data reveals several important trends in the company's share price, operating profit per share, and the price to operating profit ratio (P/OP) over the given periods.

Share Price

The share price demonstrates a fluctuating but overall upward trend from March 31, 2020, to March 31, 2025. Initially, the price decreases from $40.92 in March 2020 to a low of $29.31 in September 2020. Subsequently, it recovers strongly, reaching a peak of $133.82 in September 2022. After this peak, the share price experiences volatility and a general downward movement, declining to $88.82 by March 2025. Despite the fluctuations, the price remains significantly higher compared to the early 2020 values.

Operating Profit Per Share

Operating profit per share data begins from December 2020 with a negative value of -$1.77, suggesting a period of loss. From March 2021 onward, there is a clear upward trajectory, peaking at $23.70 in December 2022. Following this peak, the operating profit per share declines steadily but remains positive, settling around $12.12 by March 2025. This pattern indicates a recovery phase post-2020 with strong profitability growth until late 2022, followed by a moderation in profit levels.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio shows considerable variation throughout the period, reflecting changing market expectations and earnings performance. Starting at a high level of 71.79 in March 2021, the ratio declines sharply to 4.57 by December 2022, highlighting a period when operating profits grew faster than the share price, thus lowering valuation multiples. Post-December 2022, the ratio trends upward again, fluctuating between approximately 7.33 and 8.70 up to March 2025. The movement suggests renewed cautiousness or valuation adjustment despite sustained profitability.

Overall, the data exhibits a company recovering from a low profitability position around 2020, achieving peak operational profitability and share price towards late 2022. Following this peak, both profitability and share price show signs of normalization and correction. The P/OP ratio movements further underscore shifting market valuations in response to these financial dynamics, illustrating periods of strong growth followed by adjustment phases.

Share Price Trend

The share price exhibited significant volatility over the periods analyzed. Initially valued at $40.92 in March 2020, it declined to a low of $29.31 by September 2020. Subsequently, a robust recovery phase was observed, with prices rising steadily to a peak of $133.82 in September 2022. Following this peak, the share price experienced a general downward trend, fluctuating but trending lower to reach $88.82 by March 2025. This pattern suggests a period of recovery and growth after an initial dip, followed by a partial retracement in valuation.

Sales Per Share Dynamics

Sales per share data, available starting from March 2021, showed a consistent upward trajectory initially. Sales per share climbed from $13.87 in March 2021 to a peak of $64.40 in March 2023. Following this peak, a gradual decline occurred, with sales per share dropping to $43.03 by March 2025. This trend indicates a period of strong revenue growth per share, then a subsequent moderation or decrease in sales performance.

Price to Sales (P/S) Ratio Analysis

The price to sales ratio (P/S) exhibited a generally decreasing trend from March 2021 through September 2022, moving from 3.52 down to a low of 1.68. This decline implies that share price appreciation was not keeping pace with sales growth during this phase, leading to a valuation that became relatively cheaper in terms of sales. After this low point, the P/S ratio fluctuated moderately, with values between approximately 1.56 and 2.59 up to March 2025. This suggests some correction or stabilization in market valuation relative to sales, with the market possibly reassessing growth prospects or profitability.

Overall Insights

The data reflects an initial phase of recovery and growth post-2020, marked by rising sales per share and share price. However, the P/S ratio's decline during the sales growth peak suggests the market price did not increase proportionally with sales, indicating potentially more conservative investor expectations or market concerns over profitability or sustainability. The subsequent decreases in both sales per share and share price toward the later periods highlight a possible softening in business performance or market conditions, requiring further investigation into underlying operational or macroeconomic factors.

The share price of the company exhibited notable volatility over the observed periods. Starting at $40.92 in March 2020, it declined to a low of $29.31 by September 2020. Subsequently, the share price demonstrated a strong upward trajectory, reaching a peak of $133.82 in September 2022. After this peak, the price showed fluctuations but generally remained elevated compared to earlier periods, ending at $88.82 in March 2025. This pattern suggests a recovery phase followed by significant growth and stabilizing at a higher level than the initial observation.

The book value per share (BVPS) showed a more stable and steadily increasing trend across the same timeline. Starting at $29.20 in March 2020, BVPS experienced a slight dip by the end of that year but then commenced a consistent upward movement, reaching $51.68 by March 2025. This steady increase in BVPS reflects ongoing growth in the company’s net asset base per share, signaling improving underlying financial strength.

The price-to-book value (P/BV) ratio presented a mixed behavior through the periods. Initially, the ratio decreased from 1.40 in March 2020 to a low of 1.02 by September 2020, which coincides with the share price decline and a relatively stable BVPS. Following this, the P/BV ratio rose sharply, hitting a peak of 3.40 in September 2022, reflecting that the share price increased at a faster rate than the book value per share. Post-peak, the ratio declined but remained above 1.70 in the last reported period (March 2025), indicating that the market valued the shares above their book value, albeit less excessively than at the peak.

Summary of Trends

The share price demonstrated significant volatility but showed an overall upward trend with intermittent peaks and troughs.

Book value per share steadily increased, indicating strengthening asset base per share over time.

The price-to-book ratio initially fell but then rose markedly during the growth phase of the share price, before settling at lower levels, indicating changing market perceptions of value in relation to the company’s net assets.

Overall, the data reflect a period of recovery and growth after mid-2020, with share prices appreciating significantly relative to book value. The market valuation, as captured by the P/BV ratio, peaked alongside share prices but has moderated towards the end of the period, suggesting a potential recalibration of investor expectations or market conditions.