Price to Operating Profit (P/OP)
since 2005
Calculation
Ecolab Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2022 | 32.34 | = | 180.30 | ÷ | 5.57 | 5.57 | = | 1,598,600 | ÷ | 286,751,531 | |
| Feb 26, 2021 | 42.88 | = | 209.36 | ÷ | 4.88 | 4.88 | = | 1,395,700 | ÷ | 285,849,956 | |
| Feb 28, 2020 | 25.82 | = | 180.45 | ÷ | 6.99 | 6.99 | = | 2,013,800 | ÷ | 288,166,440 | |
| Mar 1, 2019 | 25.16 | = | 170.16 | ÷ | 6.76 | 6.76 | = | 1,947,000 | ÷ | 287,853,232 | |
| Feb 23, 2018 | 18.71 | = | 130.84 | ÷ | 6.99 | 6.99 | = | 2,019,800 | ÷ | 288,858,441 | |
| Feb 24, 2017 | 19.12 | = | 125.50 | ÷ | 6.56 | 6.56 | = | 1,915,000 | ÷ | 291,718,512 | |
| Feb 26, 2016 | 20.15 | = | 106.28 | ÷ | 5.27 | 5.27 | = | 1,561,300 | ÷ | 296,001,857 | |
| Feb 27, 2015 | 17.69 | = | 115.54 | ÷ | 6.53 | 6.53 | = | 1,955,000 | ÷ | 299,250,034 | |
| Feb 28, 2014 | 20.77 | = | 107.75 | ÷ | 5.19 | 5.19 | = | 1,560,600 | ÷ | 300,767,420 | |
| Feb 26, 2013 | 17.35 | = | 75.84 | ÷ | 4.37 | 4.37 | = | 1,289,300 | ÷ | 294,954,864 | |
| Feb 28, 2012 | 23.86 | = | 61.75 | ÷ | 2.59 | 2.59 | = | 753,800 | ÷ | 291,269,964 | |
| Feb 25, 2011 | 13.91 | = | 48.23 | ÷ | 3.47 | 3.47 | = | 806,800 | ÷ | 232,664,561 | |
| Feb 26, 2010 | 14.61 | = | 42.14 | ÷ | 2.88 | 2.88 | = | 681,300 | ÷ | 236,263,986 | |
| Feb 27, 2009 | 10.54 | = | 31.78 | ÷ | 3.02 | 3.02 | = | 712,500 | ÷ | 236,192,852 | |
| Feb 25, 2008 | 17.74 | = | 47.90 | ÷ | 2.70 | 2.70 | = | 667,300 | ÷ | 247,200,121 | |
| Feb 28, 2007 | 17.33 | = | 42.30 | ÷ | 2.44 | 2.44 | = | 611,642 | ÷ | 250,634,287 | |
| Feb 28, 2006 | 16.89 | = | 36.19 | ÷ | 2.14 | 2.14 | = | 542,420 | ÷ | 253,210,779 |
Based on: 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 Ecolab Inc. Annual Report.
The analysis of the provided financial metrics over the annual periods reveals several notable trends:
- Share Price
- The share price exhibited overall growth from approximately $36.19 in early 2006, rising steadily with some fluctuations to reach a peak near $209.36 in early 2021. Despite this peak, a decline occurred in the last reported period, with the price falling to about $180.30 by early 2022. This pattern suggests a generally positive market valuation trend over the long term, tempered by a recent decrease potentially reflecting market conditions or company performance concerns.
- Operating Profit per Share (US$)
- Operating profit per share followed a general upward trend from $2.14 in 2006, increasing to a peak level of around $6.99 in both 2018 and 2020. There were some declines in certain years, notably in 2012 and 2021, where the operating profit per share decreased to $2.59 and $4.88 respectively. After these dips, the profit values showed slight recovery but did not consistently return to prior peak values, indicating variability in operating efficiency or profitability over time.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio reveals significant volatility throughout the periods. Starting at approximately 16.89 in 2006, the ratio fluctuated considerably, reaching a low near 10.54 in 2009, which might coincide with lower share prices or higher operating profits at that time. The ratio then increased specially from 2011 onward, peaking sharply at 42.88 in 2021, reflecting a potential overvaluation or a relative decrease in operating profit compared to share price. The subsequent drop to 32.34 in 2022 suggests some correction in market valuation relative to operational earnings.
In summary, the data illustrates a long-term appreciation in share price accompanied by an overall increase in operating profit per share, though both metrics display periods of decline. The price to operating profit ratio's high volatility indicates fluctuating investor sentiment and market perceptions about the company's profitability and growth prospects across these years.
Comparison to Competitors
Ecolab Inc., P/OP, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | |
|---|---|---|
| Feb 25, 2022 | 32.34 | 29.87 |
| Feb 26, 2021 | 42.88 | 39.58 |
| Feb 28, 2020 | 25.82 | 36.01 |
| Mar 1, 2019 | 25.16 | 16.21 |
| Feb 23, 2018 | 18.71 | 17.56 |
| Feb 24, 2017 | 19.12 | 15.33 |
| Feb 26, 2016 | 20.15 | 12.50 |
| Feb 27, 2015 | 17.69 | 14.24 |
| Feb 28, 2014 | 20.77 | 14.25 |
| Feb 26, 2013 | 17.35 | 13.64 |
| Feb 28, 2012 | 23.86 | 13.18 |
| Feb 25, 2011 | 13.91 | 14.13 |
| Feb 26, 2010 | 14.61 | 14.78 |
| Feb 27, 2009 | 10.54 | 9.67 |
| Feb 25, 2008 | 17.74 | 14.77 |
| Feb 28, 2007 | 17.33 | 13.01 |
| Feb 28, 2006 | 16.89 | 13.69 |
Based on: 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).