Stock Analysis on Net

Monsanto Co. (NYSE:MON)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 5, 2018.

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

Monsanto Co., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Monsanto Co. Annual Report.


Share Price
The share price exhibited considerable volatility over the observed period. Starting at $31.56 in November 2005, it nearly tripled to $94.28 by October 2007, indicating a phase of strong market optimism or positive company performance. A notable decline occurred during the 2008 financial crisis, with the price falling to $71.95 in October 2008 and maintaining similar levels around $71.27 in October 2009. The subsequent years showed fluctuations, with prices dropping to a low of $60.25 in October 2010 before steadily recovering and reaching a peak of $121.52 by October 2017. Overall, the share price trend from 2005 to 2017 reflects periods of rapid growth, a sharp downturn around 2008-2010, and a robust recovery thereafter.
Operating Profit per Share
Operating profit per share demonstrated a general upward trajectory throughout the period with some fluctuations. Beginning at $1.38 in November 2005, it nearly doubled to $2.6 by October 2007, and then surged significantly to $4.97 in October 2008. This upward trend continued to a peak of $8.42 in October 2014. However, from 2014 onwards, operating profit per share showed some variability, declining to $5.42 in October 2016 before rising again to $7.3 in October 2017. This pattern suggests consistent operational growth with some periods of pressure or adjustment in recent years.
Price to Operating Profit Ratio (P/OP)
The P/OP ratio fluctuated substantially during the timeframe. It started at 22.84 in November 2005, dropped to a low of 11.7 in October 2015, and had intermediate peaks such as 36.32 in October 2007 and 20.11 in October 2010. The elevated ratio in 2007 aligns with the high share price relative to operating profit, indicating potentially overvalued equity or anticipated profit growth. The reduction by 2015 suggests a more favorable valuation relative to operating profit, possibly reflecting market correction or improved operational efficiency. Towards the end of the period, the ratio increased again to 16.65 in October 2017, indicating a moderate premium on the stock price relative to earnings.
Overall Analysis
The financial data reveal a company experiencing substantial growth in operating profit per share, which underpins overall value creation. Share price movements correspond generally with operating profit trends but also reflect market conditions, particularly during the 2008 global financial crisis when a significant price decline occurred. The P/OP ratio's variability suggests changing market perceptions regarding valuation, growth prospects, and risk. The later years show stabilization and recovery in both share price and operating profit, resulting in a balanced valuation metric. These trends indicate effective operational performance with cyclicality influenced by external economic factors and market sentiment.

Comparison to Competitors

Monsanto Co., P/OP, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).