ILLUMINA INC (ILMN) Stock Fundamental Analysis
NASDAQ:ILMN - Nasdaq - US4523271090 - Common Stock - Currency: USD
Taking everything into account, ILMN scores 5 out of 10 in our fundamental rating. ILMN was compared to 55 industry peers in the Life Sciences Tools & Services industry. ILMN has an average financial health and profitability rating. ILMN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ILMN had positive earnings in the past year.
In the past year ILMN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ILMN reported negative net income in multiple years.
Each year in the past 5 years ILMN had a positive operating cash flow.
1.2 Ratios
ILMN has a Return On Assets of -15.61%. This is comparable to the rest of the industry: ILMN outperforms 49.09% of its industry peers.
The Return On Equity of ILMN (-40.75%) is worse than 65.45% of its industry peers.
ILMN's Return On Invested Capital of 15.23% is amongst the best of the industry. ILMN outperforms 89.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.61% | ||
| ROE | -40.75% | ||
| ROIC | 15.23% |
ROA(3y)-22.28%
ROA(5y)-10.63%
ROE(3y)-46.16%
ROE(5y)-23.48%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of ILMN (21.07%) is better than 87.27% of its industry peers.
In the last couple of years the Operating Margin of ILMN has declined.
ILMN's Gross Margin of 66.34% is amongst the best of the industry. ILMN outperforms 92.73% of its industry peers.
In the last couple of years the Gross Margin of ILMN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.07% | ||
| PM (TTM) | N/A | ||
| GM | 66.34% |
OM growth 3YN/A
OM growth 5Y-11.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.07%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
ILMN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ILMN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ILMN has more shares outstanding
Compared to 1 year ago, ILMN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.54 indicates that ILMN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.54, ILMN is doing good in the industry, outperforming 74.55% of the companies in the same industry.
ILMN has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as ILMN would need 2.27 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.27, ILMN belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
ILMN has a Debt/Equity ratio of 0.63. This is a neutral value indicating ILMN is somewhat dependend on debt financing.
ILMN has a worse Debt to Equity ratio (0.63) than 67.27% of its industry peers.
Even though the debt/equity ratio score it not favorable for ILMN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.53
WACC9.93%
2.3 Liquidity
ILMN has a Current Ratio of 1.86. This is a normal value and indicates that ILMN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.86, ILMN is doing worse than 60.00% of the companies in the same industry.
ILMN has a Quick Ratio of 1.48. This is a normal value and indicates that ILMN is financially healthy and should not expect problems in meeting its short term obligations.
ILMN has a Quick ratio of 1.48. This is in the lower half of the industry: ILMN underperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
ILMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 278.41%, which is quite impressive.
Measured over the past years, ILMN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.93% on average per year.
ILMN shows a decrease in Revenue. In the last year, the revenue decreased by -3.47%.
Measured over the past years, ILMN shows a small growth in Revenue. The Revenue has been growing by 4.29% on average per year.
EPS 1Y (TTM)278.41%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%977.78%
Revenue 1Y (TTM)-3.47%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-3.25%
3.2 Future
The Earnings Per Share is expected to grow by 21.99% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y76.08%
EPS Next 2Y39.37%
EPS Next 3Y30.46%
EPS Next 5Y21.99%
Revenue Next Year-2.13%
Revenue Next 2Y0.45%
Revenue Next 3Y2.3%
Revenue Next 5Y3.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.65, ILMN can be considered very expensive at the moment.
69.09% of the companies in the same industry are more expensive than ILMN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.15, ILMN is valued at the same level.
With a Price/Forward Earnings ratio of 20.05, ILMN is valued on the expensive side.
ILMN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ILMN is cheaper than 78.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ILMN to the average of the S&P500 Index (21.60), we can say ILMN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 20.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILMN is valued cheaper than 89.09% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ILMN is valued cheaper than 85.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.24 | ||
| EV/EBITDA | 12.72 |
4.3 Compensation for Growth
ILMN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ILMN's earnings are expected to grow with 30.46% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y39.37%
EPS Next 3Y30.46%
5. Dividend
5.1 Amount
ILMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
95.41
+0.62 (+0.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.23%
Inst Owner Change0.04%
Ins Owners0.17%
Ins Owner Change6.72%
Market Cap15.10B
Analysts74
Price Target110.17 (15.47%)
Short Float %3.47%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.22%
Min EPS beat(2)-7.76%
Max EPS beat(2)1.33%
EPS beat(4)2
Avg EPS beat(4)-10.12%
Min EPS beat(4)-60.91%
Max EPS beat(4)26.88%
EPS beat(8)6
Avg EPS beat(8)314.25%
EPS beat(12)9
Avg EPS beat(12)229.49%
EPS beat(16)13
Avg EPS beat(16)180.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.95%
Max Revenue beat(2)-0.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.91%
Revenue beat(8)3
Avg Revenue beat(8)-0.59%
Revenue beat(12)4
Avg Revenue beat(12)-1.16%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)-5.38%
PT rev (3m)-17.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 20.05 | ||
| P/S | 3.48 | ||
| P/FCF | 17.24 | ||
| P/OCF | 15.1 | ||
| P/B | 6.38 | ||
| P/tB | 15.46 | ||
| EV/EBITDA | 12.72 |
EPS(TTM)3.33
EY3.49%
EPS(NY)4.76
Fwd EY4.99%
FCF(TTM)5.53
FCFY5.8%
OCF(TTM)6.32
OCFY6.62%
SpS27.4
BVpS14.96
TBVpS6.17
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.61% | ||
| ROE | -40.75% | ||
| ROCE | 19.27% | ||
| ROIC | 15.23% | ||
| ROICexc | 20.6% | ||
| ROICexgc | 34.16% | ||
| OM | 21.07% | ||
| PM (TTM) | N/A | ||
| GM | 66.34% | ||
| FCFM | 20.2% |
ROA(3y)-22.28%
ROA(5y)-10.63%
ROE(3y)-46.16%
ROE(5y)-23.48%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-6.48%
ROICexc growth 3YN/A
ROICexc growth 5Y-9.28%
OM growth 3YN/A
OM growth 5Y-11.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.07%
GM growth 5Y-1.23%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 39.37% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.54 |
F-Score6
WACC9.93%
ROIC/WACC1.53
Cap/Depr(3y)66.6%
Cap/Depr(5y)76.75%
Cap/Sales(3y)5.82%
Cap/Sales(5y)5.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)278.41%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%977.78%
EPS Next Y76.08%
EPS Next 2Y39.37%
EPS Next 3Y30.46%
EPS Next 5Y21.99%
Revenue 1Y (TTM)-3.47%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-3.25%
Revenue Next Year-2.13%
Revenue Next 2Y0.45%
Revenue Next 3Y2.3%
Revenue Next 5Y3.86%
EBIT growth 1Y1675.86%
EBIT growth 3YN/A
EBIT growth 5Y-7.67%
EBIT Next Year26.49%
EBIT Next 3Y15.01%
EBIT Next 5Y12.66%
FCF growth 1Y484.21%
FCF growth 3Y28.14%
FCF growth 5Y-3.38%
OCF growth 1Y334.78%
OCF growth 3Y15.37%
OCF growth 5Y-4.45%