General Mills Inc. (NYSE:GIS)

The analysis of the financial data over the fifteen-year period reveals several notable trends related to the share price, operating profit per share, and the price-to-operating profit ratio (P/OP).

Share Price

The share price experienced an overall upward trend from 23.77 US$ in 2005 to a peak of 71.32 US$ in 2016. After reaching this apex, there was a marked decline to 44.26 US$ by 2018, followed by a partial recovery to 52.52 US$ in 2019. The general trajectory suggests substantial growth with some volatility in the latter years.

Operating Profit per Share

The operating profit per share showed relatively steady growth, increasing from 3.1 US$ in 2005 to 4.83 US$ in 2014. There was a temporary dip to 3.47 US$ in 2015, but this was followed by recovery and stabilization around the mid-4 US$ mark from 2016 to 2019. The pattern indicates resilience in profitability on a per-share basis despite some fluctuations.

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

The P/OP ratio started at 7.67 in 2005 and generally increased over the years, peaking sharply at 16.31 in 2015. Post-2015, the ratio decreased but remained elevated above the levels seen in the initial years, fluctuating between roughly 10.47 and 12.57. This upward trend in the ratio indicates that the market valuation relative to operating profit per share increased, suggesting higher investor expectations or perceived growth potential since the mid-2000s.

Overall Insights

The data reflects sustained growth in operating profit per share with some volatility, paired with a significant rise in share price until 2016, followed by a notable correction. Concurrently, the elevated P/OP ratio after 2010 implies that investors were willing to pay more per unit of operating profit, likely anticipating future growth or reflecting changes in market sentiment. The partial recovery of the share price after 2018, despite the operating profit remaining stable, could indicate renewed market confidence or external factors affecting valuation.