148.5 USD
-1.36 (-0.91%)
We assign a fundamental rating of 6 out of 10 to ILMN. ILMN was compared to 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 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.
- In multiple years ILMN reported negative net income over the last 5 years.
- ILMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ILMN has a Return On Assets of 11.38%. This is amongst the best in the industry. ILMN outperforms 91.38% of its industry peers.
- ILMN has a better Return On Equity (29.53%) than 96.55% of its industry peers.
- ILMN's Return On Invested Capital of 16.40% is amongst the best of the industry. ILMN outperforms 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
- With an excellent Profit Margin value of 16.39%, ILMN belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
- The Operating Margin of ILMN (20.41%) is better than 86.21% of its industry peers.
- In the last couple of years the Operating Margin of ILMN has declined.
- The Gross Margin of ILMN (66.74%) is better than 87.93% of its industry peers.
- ILMN's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ILMN is 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.
- The debt/assets ratio for ILMN is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.78 indicates that ILMN is not in any danger for bankruptcy at the moment.
- ILMN's Altman-Z score of 4.78 is amongst the best of the industry. ILMN outperforms 81.03% 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.
- Looking at the Debt to FCF ratio, with a value of 1.99, 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 0.42. This is a healthy value indicating a solid balance between debt and equity.
- ILMN has a Debt to Equity ratio of 0.42. This is in the lower half of the industry: ILMN underperforms 60.34% 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 | 0.42 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.5
WACC10.95%
2.3 Liquidity
- ILMN has a Current Ratio of 1.43. 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 1.43. This is in the lower half of the industry: ILMN underperforms 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.
- ILMN's Quick ratio of 1.12 is on the low side compared to the rest of the industry. ILMN is outperformed by 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.12 |
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.
- 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 -2.32% in the past year.
- The Revenue has been growing slightly by 4.29% on average over the past years.
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 24.95% yearly.
- 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
- 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
- A Price/Earnings ratio of 34.06 indicates a quite expensive valuation of ILMN.
- Based on the Price/Earnings ratio, ILMN is valued a bit cheaper than 60.34% 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 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 28.70 indicates a quite expensive valuation of ILMN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ILMN indicates a somewhat cheap valuation: ILMN is cheaper than 72.41% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ILMN to the average of the S&P500 Index (25.83), we can say ILMN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.06 | ||
| Fwd PE | 28.7 |
4.2 Price Multiples
- ILMN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ILMN is 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 | 22.69 | ||
| EV/EBITDA | 20.33 |
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.
- A more expensive valuation may be justified as ILMN's earnings are expected to grow with 33.76% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y45.34%
EPS Next 3Y33.76%
5. Dividend
5.1 Amount
- No dividends for ILMN!.
| 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 6 / 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 6 / 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.