ILLUMINA INC (ILMN) Stock Fundamental Analysis
USA - NASDAQ:ILMN - US4523271090 - Common Stock
95.46 USD
-0.45 (-0.47%)
95.46 USD
0 (0%)
Taking everything into account, ILMN scores 6 out of 10 in our fundamental rating. ILMN was compared to 56 industry peers in the Life Sciences Tools & Services industry. ILMN scores excellent on profitability, but there are some minor concerns on its financial health. ILMN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make ILMN a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year ILMN was profitable.
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.
In the past 5 years ILMN always reported a positive cash flow from operatings.
1.2 Ratios
ILMN has a better Return On Assets (20.67%) than 96.43% of its industry peers.
The Return On Equity of ILMN (55.71%) is better than 96.43% of its industry peers.
With an excellent Return On Invested Capital value of 15.46%, ILMN belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.67% | ||
| ROE | 55.71% | ||
| ROIC | 15.46% |
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 Profit Margin of ILMN (29.37%) is better than 98.21% of its industry peers.
ILMN has a better Operating Margin (21.13%) than 87.50% of its industry peers.
ILMN's Operating Margin has declined in the last couple of years.
ILMN has a Gross Margin of 67.09%. This is amongst the best in the industry. ILMN outperforms 92.86% of its industry peers.
ILMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 29.37% | ||
| GM | 67.09% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ILMN is still creating some value.
ILMN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ILMN has been increased compared to 5 years ago.
Compared to 1 year ago, ILMN has a worse debt to assets ratio.
2.2 Solvency
ILMN has an Altman-Z score of 3.54. This indicates that ILMN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.54, ILMN is doing good in the industry, outperforming 69.64% of the companies in the same industry.
ILMN has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
ILMN has a Debt to FCF ratio of 1.93. This is amongst the best in the industry. ILMN outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that ILMN is somewhat dependend on debt financing.
ILMN has a worse Debt to Equity ratio (0.66) than 71.43% of its industry peers.
Although ILMN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.51
WACC10.25%
2.3 Liquidity
ILMN has a Current Ratio of 1.81. 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 1.81, ILMN is in line with its industry, outperforming 41.07% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that ILMN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.41, ILMN is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
ILMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 352.17%, which is quite impressive.
ILMN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.93% yearly.
The Revenue has decreased by -3.27% in the past year.
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)352.17%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%230.56%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-4.77%
3.2 Future
Based on estimates for the next years, ILMN will show a very strong growth in Earnings Per Share. The EPS will grow by 23.91% on average per year.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y88.03%
EPS Next 2Y42%
EPS Next 3Y31.75%
EPS Next 5Y23.91%
Revenue Next Year-1.41%
Revenue Next 2Y0.64%
Revenue Next 3Y2.25%
Revenue Next 5Y3.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 22.95, ILMN is valued on the expensive side.
Based on the Price/Earnings ratio, ILMN is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
ILMN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.40.
ILMN is valuated rather expensively with a Price/Forward Earnings ratio of 19.32.
ILMN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ILMN is cheaper than 82.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. ILMN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILMN is valued cheaper than 96.43% of the companies in the same industry.
ILMN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ILMN is cheaper than 94.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.23 | ||
| EV/EBITDA | 12.98 |
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.
ILMN has a very decent profitability rating, which may justify a higher PE ratio.
ILMN's earnings are expected to grow with 31.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y42%
EPS Next 3Y31.75%
5. Dividend
5.1 Amount
ILMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
95.46
-0.45 (-0.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-0.24%
Ins Owners0.18%
Ins Owner Change2.39%
Market Cap14.67B
Analysts71.72
Price Target113.85 (19.26%)
Short Float %4.79%
Short Ratio4.19
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)2
Avg EPS beat(2)8.3%
Min EPS beat(2)1.33%
Max EPS beat(2)15.27%
EPS beat(4)3
Avg EPS beat(4)8.93%
Min EPS beat(4)-7.76%
Max EPS beat(4)26.88%
EPS beat(8)6
Avg EPS beat(8)115.88%
EPS beat(12)10
Avg EPS beat(12)231.91%
EPS beat(16)13
Avg EPS beat(16)178.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)-0.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)-0.69%
Revenue beat(16)6
Avg Revenue beat(16)-0.56%
PT rev (1m)-0.61%
PT rev (3m)3.34%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)8.61%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)6.74%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 19.32 | ||
| P/S | 3.42 | ||
| P/FCF | 14.23 | ||
| P/OCF | 12.71 | ||
| P/B | 6.5 | ||
| P/tB | 16.18 | ||
| EV/EBITDA | 12.98 |
EPS(TTM)4.16
EY4.36%
EPS(NY)4.94
Fwd EY5.18%
FCF(TTM)6.71
FCFY7.03%
OCF(TTM)7.51
OCFY7.87%
SpS27.87
BVpS14.69
TBVpS5.9
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.67% | ||
| ROE | 55.71% | ||
| ROCE | 19.56% | ||
| ROIC | 15.46% | ||
| ROICexc | 20.6% | ||
| ROICexgc | 33.72% | ||
| OM | 21.13% | ||
| PM (TTM) | 29.37% | ||
| GM | 67.09% | ||
| FCFM | 24.07% |
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 | 0.66 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 44.24% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.55% | ||
| Profit Quality | 81.96% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.54 |
F-Score6
WACC10.25%
ROIC/WACC1.51
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)352.17%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%230.56%
EPS Next Y88.03%
EPS Next 2Y42%
EPS Next 3Y31.75%
EPS Next 5Y23.91%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-4.77%
Revenue Next Year-1.41%
Revenue Next 2Y0.64%
Revenue Next 3Y2.25%
Revenue Next 5Y3.67%
EBIT growth 1Y275.52%
EBIT growth 3YN/A
EBIT growth 5Y-7.67%
EBIT Next Year30.85%
EBIT Next 3Y15.15%
EBIT Next 5Y14.59%
FCF growth 1Y560.27%
FCF growth 3Y28.14%
FCF growth 5Y-3.38%
OCF growth 1Y449.52%
OCF growth 3Y15.37%
OCF growth 5Y-4.45%