Illumina Inc. (NASDAQ:ILMN)

The analysis of the financial data over the examined period reveals several notable trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio of the company.

Share Price

The share price experienced significant growth from 12.79 US$ in March 2006 to 494.24 US$ in February 2021. This represents a substantial increase over the 15-year span. The price showed notable volatility, including periods of sharp increase, such as between 2013 and 2015 when the price rose from 48.73 US$ to 198.62 US$, and again from 2018 to 2021, surging from 220.44 US$ to nearly 500 US$. Despite occasional declines, the overall trajectory of the share price was upward, reflecting strong market confidence or growth expectations.

Earnings Per Share (EPS)

The EPS demonstrated variability, starting with a negative value of -0.25 US$ in 2006 and moving through fluctuations including another negative period in 2008 (-2.51 US$). Following this, EPS generally trended upward, reaching a peak of 6.82 US$ in 2020 before declining to 4.5 US$ in 2021. The pattern indicates periods of operational challenges in the earlier years but a consistent improvement in profitability or earnings generation capability over time. The dip in the final year measured may reflect specific short-term issues or market conditions affecting earnings.

Price-to-Earnings (P/E) Ratio

The P/E ratio showed considerable fluctuation, indicating varied market valuation sentiments relative to earnings. Some years reported extremely high P/E ratios, such as 174.33 in 2014 and 109.92 in 2021, suggesting the market anticipated strong future growth or that earnings were temporarily low relative to the share price. Years with missing P/E values correspond to periods of negative EPS, making the P/E calculation invalid. The overall trend shows that the market often valued the company at a premium, consistent with the growth dynamics suggested by the share price and EPS trends.

In summary, the financial data reflect a company that transitioned from early earnings difficulties to sustained profitability and significant appreciation in share price. The high P/E ratios across multiple years imply strong market expectations for future performance, although the volatility in EPS and occasional declines in share price indicate some operational or market risks. The decline in EPS in the latest reported year suggests close monitoring is warranted to understand underlying causes and potential future impacts on valuation and profitability.