150.44 USD
+0.16 (+0.11%)
Overall ILMN gets a fundamental rating of 6 out of 10. We evaluated ILMN against 58 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 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.
- 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
- With an excellent Return On Assets value of 11.38%, ILMN belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
- ILMN has a Return On Equity of 29.53%. This is amongst the best in the industry. ILMN outperforms 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
- Looking at the Profit Margin, with a value of 16.39%, ILMN belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 20.41%, ILMN belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
- 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 87.93% 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
- ILMN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
- An Altman-Z score of 4.79 indicates that ILMN is not in any danger for bankruptcy at the moment.
- ILMN has a Altman-Z score of 4.79. This is in the better half of the industry: ILMN outperforms 77.59% of its industry peers.
- ILMN has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.99, ILMN belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
- A Debt/Equity ratio of 0.42 indicates that ILMN is not too dependend on debt financing.
- The Debt to Equity ratio of ILMN (0.42) is worse than 60.34% 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 | 0.42 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.49
WACC10.97%
2.3 Liquidity
- A Current Ratio of 1.43 indicates that ILMN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.43, ILMN is doing worse than 77.59% of the companies in the same industry.
- A Quick Ratio of 1.12 indicates that ILMN should not have too much problems paying its short term obligations.
- ILMN has a worse Quick ratio (1.12) than 68.97% of its industry peers.
| 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.
- ILMN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.93% yearly.
- 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
- The Earnings Per Share is expected to grow by 24.95% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 3.99% on average over the next years.
EPS Next Y96.09%
EPS Next 2Y45.34%
EPS Next 3Y33.76%
EPS Next 5Y24.95%
Revenue Next Year-0.88%
Revenue Next 2Y0.94%
Revenue Next 3Y2.71%
Revenue Next 5Y3.99%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 34.50, ILMN can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of ILMN indicates a somewhat cheap valuation: ILMN is cheaper than 62.07% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. ILMN is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 29.07, ILMN can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, ILMN is valued a bit cheaper than the industry average as 70.69% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ILMN to the average of the S&P500 Index (25.98), we can say ILMN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.5 | ||
| Fwd PE | 29.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ILMN is valued a bit cheaper than 77.59% of the companies in the same industry.
- 86.21% of the companies in the same industry are more expensive than ILMN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.99 | ||
| EV/EBITDA | 20.39 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as ILMN's earnings are expected to grow with 33.76% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y45.34%
EPS Next 3Y33.76%
5. Dividend
5.1 Amount
- ILMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ILLUMINA INC / ILMN FAQ
Can you provide the ChartMill fundamental rating for ILLUMINA INC?
ChartMill assigns a fundamental rating of 5 / 10 to ILMN.
Can you provide the valuation status for ILLUMINA INC?
ChartMill assigns a valuation rating of 6 / 10 to ILLUMINA INC (ILMN). This can be considered as Fairly Valued.
How profitable is ILLUMINA INC (ILMN) stock?
ILLUMINA INC (ILMN) has a profitability rating of 7 / 10.
What is the financial health of ILLUMINA INC (ILMN) stock?
The financial health rating of ILLUMINA INC (ILMN) is 5 / 10.
What is the expected EPS growth for ILLUMINA INC (ILMN) stock?
The Earnings per Share (EPS) of ILLUMINA INC (ILMN) is expected to grow by 96.09% in the next year.