ILLUMINA INC (ILMN) Stock Fundamental Analysis
USA - NASDAQ:ILMN - US4523271090 - Common Stock
119.93 USD
-2.05 (-1.68%)
119.51 USD
-0.42 (-0.35%)
ILMN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. ILMN has an excellent profitability rating, but there are some minor concerns on its financial health. ILMN is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ILMN a good candidate for value investing.
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.
In multiple years ILMN reported negative net income over the last 5 years.
In the past 5 years ILMN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ILMN (20.67%) is better than 94.83% of its industry peers.
ILMN has a better Return On Equity (55.71%) than 96.55% of its industry peers.
The Return On Invested Capital of ILMN (15.46%) is better than 91.38% of its industry peers.
| 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
With an excellent Profit Margin value of 29.37%, ILMN belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
The Operating Margin of ILMN (21.13%) is better than 87.93% of its industry peers.
ILMN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 67.09%, ILMN belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ILMN is creating some value.
Compared to 1 year ago, ILMN has about the same amount of shares outstanding.
Compared to 5 years ago, ILMN has more shares outstanding
ILMN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.16 indicates that ILMN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.16, ILMN is doing good in the industry, outperforming 79.31% 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.
Looking at the Debt to FCF ratio, with a value of 1.93, ILMN belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
ILMN has a Debt/Equity ratio of 0.66. This is a neutral value indicating ILMN is somewhat dependend on debt financing.
ILMN has a worse Debt to Equity ratio (0.66) than 72.41% 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 | 4.16 |
ROIC/WACC1.53
WACC10.11%
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.
ILMN has a Current ratio of 1.81. This is in the lower half of the industry: ILMN underperforms 63.79% of its industry peers.
A Quick Ratio of 1.41 indicates that ILMN should not have too much problems paying its short term obligations.
ILMN has a Quick ratio of 1.41. This is in the lower half of the industry: ILMN underperforms 63.79% of its industry peers.
| 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 152.02%, 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 -2.32%.
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
Based on estimates for the next years, ILMN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.99% on average per year.
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.
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
ILMN is valuated quite expensively with a Price/Earnings ratio of 27.51.
Compared to the rest of the industry, the Price/Earnings ratio of ILMN indicates a somewhat cheap valuation: ILMN is cheaper than 75.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. ILMN is around the same levels.
With a Price/Forward Earnings ratio of 23.71, ILMN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ILMN is valued cheaper than 81.03% of the companies in the same industry.
ILMN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.51 | ||
| Fwd PE | 23.71 |
4.2 Price Multiples
86.21% of the companies in the same industry are more expensive than ILMN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ILMN indicates a rather cheap valuation: ILMN is cheaper than 87.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.88 | ||
| EV/EBITDA | 16.37 |
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 |
119.93
-2.05 (-1.68%)
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-0.63%
Ins Owners0.18%
Ins Owner Change2.4%
Market Cap18.43B
Revenue(TTM)4.29B
Net Income(TTM)1.26B
Analysts72.86
Price Target114.15 (-4.82%)
Short Float %4.35%
Short Ratio4.36
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)0.26%
PT rev (3m)-1.64%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)2.9%
EPS NY rev (3m)9.83%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.51 | ||
| Fwd PE | 23.71 | ||
| P/S | 4.3 | ||
| P/FCF | 17.88 | ||
| P/OCF | 15.97 | ||
| P/B | 8.16 | ||
| P/tB | 20.32 | ||
| EV/EBITDA | 16.37 |
EPS(TTM)4.36
EY3.64%
EPS(NY)5.06
Fwd EY4.22%
FCF(TTM)6.71
FCFY5.59%
OCF(TTM)7.51
OCFY6.26%
SpS27.87
BVpS14.69
TBVpS5.9
PEG (NY)0.29
PEG (5Y)N/A
Graham Number37.96
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
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-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 | 4.16 |
F-Score6
WACC10.11%
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)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 1Y275.52%
EBIT growth 3YN/A
EBIT growth 5Y-7.67%
EBIT Next Year30.85%
EBIT Next 3Y15.15%
EBIT Next 5Y16.22%
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%
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.