ILLUMINA INC (ILMN) Stock Fundamental Analysis
USA - NASDAQ:ILMN - US4523271090 - Common Stock
119.26 USD
-0.86 (-0.72%)
118.62 USD
-0.64 (-0.54%)
Taking everything into account, ILMN scores 6 out of 10 in our fundamental rating. ILMN was compared to 58 industry peers in the Life Sciences Tools & Services industry. While ILMN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ILMN may be a bit undervalued, certainly considering the very reasonable score on growth This makes ILMN very considerable for value investing!
1. Profitability
1.1 Basic Checks
ILMN had positive earnings in the past year.
ILMN had a positive operating cash flow in the past year.
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 better Return On Assets (11.38%) than 91.38% of its industry peers.
ILMN has a better Return On Equity (29.53%) than 96.55% of its industry peers.
The Return On Invested Capital of ILMN (16.40%) is better than 91.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 29.53% | ||
| ROIC | 16.4% |
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 (16.39%) is better than 89.66% of its industry peers.
ILMN has a Operating Margin of 20.41%. This is amongst the best in the industry. ILMN outperforms 86.21% of its industry peers.
In the last couple of years the Operating Margin of ILMN has declined.
ILMN's Gross Margin of 66.74% is amongst the best of the industry. ILMN outperforms 89.66% 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 | 20.41% | ||
| PM (TTM) | 16.39% | ||
| GM | 66.74% |
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.
Compared to 1 year ago, ILMN has about the same amount of shares outstanding.
The number of shares outstanding for ILMN has been increased compared to 5 years ago.
The debt/assets ratio for ILMN is higher compared to a year ago.
2.2 Solvency
ILMN has an Altman-Z score of 4.06. This indicates that ILMN is financially healthy and has little risk of bankruptcy at the moment.
ILMN has a Altman-Z score of 4.06. This is in the better half of the industry: ILMN outperforms 77.59% of its industry peers.
The Debt to FCF ratio of ILMN is 1.99, which is an excellent value as it means it would take ILMN, only 1.99 years of fcf income to pay off all of its debts.
ILMN has a Debt to FCF ratio of 1.99. This is amongst the best in the industry. ILMN outperforms 87.93% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that ILMN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, ILMN is in line with its industry, outperforming 41.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 4.06 |
ROIC/WACC1.63
WACC10.07%
2.3 Liquidity
A Current Ratio of 1.43 indicates that ILMN should not have too much problems paying its short term obligations.
The Current ratio of ILMN (1.43) is worse than 77.59% of its industry peers.
A Quick Ratio of 1.12 indicates that ILMN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, ILMN is doing worse than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 152.02% over the past year.
The earnings per share for ILMN have been decreasing by -17.93% on average. This is quite bad
Looking at the last year, ILMN shows a decrease in Revenue. The Revenue has decreased by -2.32% in the last year.
ILMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.29% yearly.
EPS 1Y (TTM)152.02%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%17.54%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%0.37%
3.2 Future
ILMN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.99% yearly.
The Revenue is expected to grow by 3.93% on average over the next years.
EPS Next Y93.48%
EPS Next 2Y43.68%
EPS Next 3Y33.01%
EPS Next 5Y24.99%
Revenue Next Year-1.07%
Revenue Next 2Y0.57%
Revenue Next 3Y2.22%
Revenue Next 5Y3.93%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.35 indicates a quite expensive valuation of ILMN.
ILMN's Price/Earnings ratio is a bit cheaper when compared to the industry. ILMN is cheaper than 75.86% of the companies in the same industry.
ILMN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
ILMN is valuated rather expensively with a Price/Forward Earnings ratio of 23.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ILMN indicates a rather cheap valuation: ILMN is cheaper than 81.03% of the companies listed in the same industry.
ILMN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 23.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILMN is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
ILMN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ILMN is cheaper than 87.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.33 | ||
| EV/EBITDA | 16.36 |
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.
The decent profitability rating of ILMN may justify a higher PE ratio.
ILMN's earnings are expected to grow with 33.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y43.68%
EPS Next 3Y33.01%
5. Dividend
5.1 Amount
ILMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
119.26
-0.86 (-0.72%)
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 Change1.4%
Ins Owners0.18%
Ins Owner Change4.33%
Market Cap18.33B
Revenue(TTM)4.29B
Net Income(TTM)703.00M
Analysts72.86
Price Target114.15 (-4.28%)
Short Float %4.39%
Short Ratio3.77
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)13.9%
Min EPS beat(2)12.52%
Max EPS beat(2)15.27%
EPS beat(4)3
Avg EPS beat(4)5.34%
Min EPS beat(4)-7.76%
Max EPS beat(4)15.27%
EPS beat(8)6
Avg EPS beat(8)97.15%
EPS beat(12)10
Avg EPS beat(12)231.96%
EPS beat(16)13
Avg EPS beat(16)178.01%
Revenue beat(2)0
Avg Revenue beat(2)-0.74%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.28%
Revenue beat(4)0
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)-0.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)4
Avg Revenue beat(12)-0.57%
Revenue beat(16)5
Avg Revenue beat(16)-0.78%
PT rev (1m)0.26%
PT rev (3m)-1.64%
EPS NQ rev (1m)4.22%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)2.9%
EPS NY rev (3m)9.83%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.35 | ||
| Fwd PE | 23.58 | ||
| P/S | 4.27 | ||
| P/FCF | 18.33 | ||
| P/OCF | 16.34 | ||
| P/B | 7.7 | ||
| P/tB | 17.57 | ||
| EV/EBITDA | 16.36 |
EPS(TTM)4.36
EY3.66%
EPS(NY)5.06
Fwd EY4.24%
FCF(TTM)6.51
FCFY5.46%
OCF(TTM)7.3
OCFY6.12%
SpS27.9
BVpS15.49
TBVpS6.79
PEG (NY)0.29
PEG (5Y)N/A
Graham Number38.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 29.53% | ||
| ROCE | 20.76% | ||
| ROIC | 16.4% | ||
| ROICexc | 23.54% | ||
| ROICexgc | 43.23% | ||
| OM | 20.41% | ||
| PM (TTM) | 16.39% | ||
| GM | 66.74% | ||
| FCFM | 23.32% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 44.36% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.57% | ||
| Profit Quality | 142.25% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 4.06 |
F-Score7
WACC10.07%
ROIC/WACC1.63
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)152.02%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%17.54%
EPS Next Y93.48%
EPS Next 2Y43.68%
EPS Next 3Y33.01%
EPS Next 5Y24.99%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%0.37%
Revenue Next Year-1.07%
Revenue Next 2Y0.57%
Revenue Next 3Y2.22%
Revenue Next 5Y3.93%
EBIT growth 1Y154.36%
EBIT growth 3YN/A
EBIT growth 5Y-7.67%
EBIT Next Year30.85%
EBIT Next 3Y15.15%
EBIT Next 5Y16.22%
FCF growth 1Y495.24%
FCF growth 3Y28.14%
FCF growth 5Y-3.38%
OCF growth 1Y179.8%
OCF growth 3Y15.37%
OCF growth 5Y-4.45%
ILLUMINA INC / ILMN FAQ
Can you provide the ChartMill fundamental rating for ILLUMINA INC?
ChartMill assigns a fundamental rating of 6 / 10 to ILMN.
What is the valuation status for ILMN stock?
ChartMill assigns a valuation rating of 7 / 10 to ILLUMINA INC (ILMN). This can be considered as Undervalued.
How profitable is ILLUMINA INC (ILMN) stock?
ILLUMINA INC (ILMN) has a profitability rating of 7 / 10.
How financially healthy is ILLUMINA INC?
The financial health rating of ILLUMINA INC (ILMN) is 5 / 10.
Can you provide the expected EPS growth for ILMN stock?
The Earnings per Share (EPS) of ILLUMINA INC (ILMN) is expected to grow by 93.48% in the next year.