Marathon Oil Corp. (NYSE:MRO)

The share price demonstrates significant volatility over the analyzed period. Initially, there is an upward trend from 34.89 US$ in 2006 to a peak of 53.16 US$ in 2008, followed by a steep decline to 23.27 US$ in 2009. Subsequently, the price recovers somewhat, reaching around 49.6 US$ in 2011, but then undergoes a consistent downward trajectory, hitting a low of 7.39 US$ in 2016. Post-2016, the share price shows a gradual upward trend, culminating at 21.89 US$ by 2022. This pattern indicates periods of strong growth followed by sharp contractions and partial recovery phases.

The operating profit per share (OPPS) reveals a fluctuating performance with notable peaks and troughs. The OPPS rises to its highest value of 12.96 US$ in 2007 before declining and stabilizing at lower figures between 2008 and 2015, including a marked decrease into negative territory in 2016 (-3.98 US$) and 2017 (-1.06 US$). After a brief recovery around 2019 (2.04 US$), the OPPS again dips and remains volatile, ending at 1.79 US$ in 2022. This suggests variability in operational efficiency and profitability throughout the period, including phases of losses.

The Price to Operating Profit ratio (P/OP) fluctuates correspondingly with share price and OPPS. Early years show relatively low P/OP values, indicative of more attractive valuation relative to operating profit, e.g. 3.52 in 2007. The ratio spikes significantly in 2015 to 11.68 and again in 2019 (12.83), suggesting the share price was relatively high compared to operating profit during these years, or conversely, operating profit was diminished relative to share price. The lack of data in some years impairs a continuous analysis but overall, the ratio indicates periods where market valuation diverged markedly from operational profitability.

Overall, the data portrays a company experiencing significant fluctuations in market valuation and operational profitability over the years. The share price and operating profits exhibit cyclical trends marked by periods of strong performance and deep declines, reflective of broader market dynamics and possibly company-specific challenges. The varying P/OP ratios highlight the changing perception of value investors assign relative to operational earnings, emphasizing caution during periods of elevated ratios where profitability did not align with market price.

Share Price

Rises from 2006 to 2008, sharp decline in 2009, recovery till 2011, prolonged decline until 2016, gradual rise thereafter.

Operating Profit Per Share

Peaks in 2007, generally declining trend with negative values in 2016-2017, modest recovery in later years but remains volatile.

Price to Operating Profit Ratio

Relatively low and stable in early years, spikes in 2015 and 2019, reflecting valuation discrepancies with operating profit.