ILLUMINA INC (ILMN) Stock Fundamental Analysis
NASDAQ:ILMN - Nasdaq - US4523271090 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ILMN. ILMN was compared to 57 industry peers in the Life Sciences Tools & Services industry. While ILMN seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
ILMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ILMN (-26.34%) is worse than 70.18% of its industry peers.
ILMN's Return On Equity of -74.54% is on the low side compared to the rest of the industry. ILMN is outperformed by 75.44% of its industry peers.
With a decent Return On Invested Capital value of 5.39%, ILMN is doing good in the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -26.34% | ||
| ROE | -74.54% | ||
| ROIC | 5.39% |
ROA(3y)-14.14%
ROA(5y)-4.02%
ROE(3y)-26.62%
ROE(5y)-8.83%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ILMN's Operating Margin of 7.84% is fine compared to the rest of the industry. ILMN outperforms 66.67% of its industry peers.
ILMN has a better Gross Margin (63.94%) than 92.98% of its industry peers.
ILMN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.84% | ||
| PM (TTM) | N/A | ||
| GM | 63.94% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.6%
GM growth 5Y-2.46%
2. Health
2.1 Basic Checks
ILMN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ILMN has more shares outstanding
ILMN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ILMN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.90 indicates that ILMN is not in any danger for bankruptcy at the moment.
The Altman-Z score of ILMN (3.90) is better than 71.93% of its industry peers.
The Debt to FCF ratio of ILMN is 3.63, which is a good value as it means it would take ILMN, 3.63 years of fcf income to pay off all of its debts.
ILMN has a better Debt to FCF ratio (3.63) than 78.95% of its industry peers.
ILMN has a Debt/Equity ratio of 0.94. This is a neutral value indicating ILMN is somewhat dependend on debt financing.
The Debt to Equity ratio of ILMN (0.94) is worse than 75.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 3.9 |
ROIC/WACC0.54
WACC10.08%
2.3 Liquidity
A Current Ratio of 2.43 indicates that ILMN has no problem at all paying its short term obligations.
ILMN has a Current ratio (2.43) which is in line with its industry peers.
ILMN has a Quick Ratio of 1.85. 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 (1.85) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
ILMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.85%, which is quite impressive.
The earnings per share for ILMN have been decreasing by -31.38% on average. This is quite bad
Looking at the last year, ILMN shows a decrease in Revenue. The Revenue has decreased by -1.68% in the last year.
The Revenue has been growing slightly by 6.21% on average over the past years.
EPS 1Y (TTM)98.85%
EPS 3Y-42.18%
EPS 5Y-31.38%
EPS Q2Q%245.45%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y11.62%
Revenue growth 5Y6.21%
Sales Q2Q%-3.49%
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 51.82% on average per year.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y384.01%
EPS Next 2Y128.43%
EPS Next 3Y82.33%
EPS Next 5Y51.82%
Revenue Next Year-3.66%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.72%
Revenue Next 5Y3.59%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 71.79, which means the current valuation is very expensive for ILMN.
Based on the Price/Earnings ratio, ILMN is valued a bit cheaper than the industry average as 61.40% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.47. ILMN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 27.36, the valuation of ILMN can be described as expensive.
Based on the Price/Forward Earnings ratio, ILMN is valued a bit cheaper than 73.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, ILMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.79 | ||
| Fwd PE | 27.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILMN is valued a bit cheaper than the industry average as 71.93% of the companies are valued more expensively.
77.19% 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 | 36.01 | ||
| EV/EBITDA | 28.09 |
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's earnings are expected to grow with 82.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y128.43%
EPS Next 3Y82.33%
5. Dividend
5.1 Amount
No dividends for ILMN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ILLUMINA INC
NASDAQ:ILMN (2/4/2025, 8:00:02 PM)
After market: 124.25 +0.05 (+0.04%)124.2
-6.9 (-5.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.19%
Inst Owner Change0.44%
Ins Owners0.14%
Ins Owner Change-0.42%
Market Cap19.70B
Analysts76.25
Price Target165.5 (33.25%)
Short Float %3.77%
Short Ratio3.1
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)-17.02%
Min EPS beat(2)-60.91%
Max EPS beat(2)26.88%
EPS beat(4)3
Avg EPS beat(4)188.96%
Min EPS beat(4)-60.91%
Max EPS beat(4)670.66%
EPS beat(8)7
Avg EPS beat(8)345.27%
EPS beat(12)10
Avg EPS beat(12)235.56%
EPS beat(16)14
Avg EPS beat(16)183.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-1.91%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)1.08%
Revenue beat(8)4
Avg Revenue beat(8)-0.53%
Revenue beat(12)5
Avg Revenue beat(12)-0.83%
Revenue beat(16)9
Avg Revenue beat(16)0.77%
PT rev (1m)-0.33%
PT rev (3m)3.74%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)173.76%
EPS NY rev (1m)0.01%
EPS NY rev (3m)8.09%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)-9.52%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.79 | ||
| Fwd PE | 27.36 | ||
| P/S | 4.49 | ||
| P/FCF | 36.01 | ||
| P/OCF | 28.26 | ||
| P/B | 9.27 | ||
| P/tB | 27.86 | ||
| EV/EBITDA | 28.09 |
EPS(TTM)1.73
EY1.39%
EPS(NY)4.54
Fwd EY3.66%
FCF(TTM)3.45
FCFY2.78%
OCF(TTM)4.39
OCFY3.54%
SpS27.68
BVpS13.4
TBVpS4.46
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -26.34% | ||
| ROE | -74.54% | ||
| ROCE | 6.83% | ||
| ROIC | 5.39% | ||
| ROICexc | 6.63% | ||
| ROICexgc | 10.13% | ||
| OM | 7.84% | ||
| PM (TTM) | N/A | ||
| GM | 63.94% | ||
| FCFM | 12.46% |
ROA(3y)-14.14%
ROA(5y)-4.02%
ROE(3y)-26.62%
ROE(5y)-8.83%
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 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.6%
GM growth 5Y-2.46%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.63 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 38.27% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 3.9 |
F-Score6
WACC10.08%
ROIC/WACC0.54
Cap/Depr(3y)82.17%
Cap/Depr(5y)91.75%
Cap/Sales(3y)6.37%
Cap/Sales(5y)6.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)98.85%
EPS 3Y-42.18%
EPS 5Y-31.38%
EPS Q2Q%245.45%
EPS Next Y384.01%
EPS Next 2Y128.43%
EPS Next 3Y82.33%
EPS Next 5Y51.82%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y11.62%
Revenue growth 5Y6.21%
Sales Q2Q%-3.49%
Revenue Next Year-3.66%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.72%
Revenue Next 5Y3.59%
EBIT growth 1Y683.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year390.95%
EBIT Next 3Y87.29%
EBIT Next 5Y54.14%
FCF growth 1Y592.41%
FCF growth 3Y-31.85%
FCF growth 5Y-19.73%
OCF growth 1Y32.26%
OCF growth 3Y-23.79%
OCF growth 5Y-15.99%