ILLUMINA INC (ILU.DE) Stock Fundamental Analysis

Europe - Frankfurt Stock Exchange - FRA:ILU - US4523271090 - Common Stock

127.48 EUR

+1.2 (+0.95%)

Last: 1/27/2026, 7:00:00 PM

Fundamental Rating

Overall ILU gets a fundamental rating of 6 out of 10. We evaluated ILU against 22 industry peers in the Life Sciences Tools & Services industry. ILU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ILU has a correct valuation and a medium growth rate. This makes ILU very considerable for quality investing!

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1. Profitability

1.1 Basic Checks

In the past year ILU was profitable.
In the past year ILU had a positive cash flow from operations.
In multiple years ILU reported negative net income over the last 5 years.
In the past 5 years ILU always reported a positive cash flow from operatings.

1.2 Ratios

ILU has a better Return On Assets (11.38%) than 95.45% of its industry peers.
With an excellent Return On Equity value of 29.53%, ILU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ILU's Return On Invested Capital of 14.61% is amongst the best of the industry. ILU outperforms 95.45% of its industry peers.

		Industry Rank	Sector Rank
ROA	11.38%
ROE	29.53%
ROIC	14.61%

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

ILU has a better Profit Margin (16.39%) than 81.82% of its industry peers.
The Operating Margin of ILU (20.41%) is better than 86.36% of its industry peers.
In the last couple of years the Operating Margin of ILU has declined.
ILU's Gross Margin of 66.74% is amongst the best of the industry. ILU outperforms 95.45% of its industry peers.
ILU'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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ILU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ILU has about the same amout of shares outstanding than it did 1 year ago.
ILU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ILU is higher compared to a year ago.

2.2 Solvency

ILU has an Altman-Z score of 4.83. This indicates that ILU is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.83, ILU belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
ILU 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.
ILU has a Debt to FCF ratio of 1.99. This is amongst the best in the industry. ILU outperforms 100.00% of its industry peers.
ILU has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, ILU belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.42
Debt/FCF	1.99
Altman-Z	4.83

ROIC/WACC1.35

WACC10.83%

2.3 Liquidity

A Current Ratio of 1.43 indicates that ILU should not have too much problems paying its short term obligations.
ILU's Current ratio of 1.43 is in line compared to the rest of the industry. ILU outperforms 50.00% of its industry peers.
ILU has a Quick Ratio of 1.12. This is a normal value and indicates that ILU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ILU (1.12) is better than 63.64% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.43
Quick Ratio	1.12

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

ILU 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, ILU shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.93% on average per year.
Looking at the last year, ILU shows a decrease in Revenue. The Revenue has decreased by -2.32% in the last year.
ILU 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, ILU will show a very strong growth in Earnings Per Share. The EPS will grow by 24.95% on average per year.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 34.93, the valuation of ILU can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ILU.
ILU's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.87.
ILU is valuated quite expensively with a Price/Forward Earnings ratio of 29.39.
ILU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ILU to the average of the S&P500 Index (25.96), we can say ILU is valued inline with the index average.

		Industry Rank	Sector Rank
PE	34.93
Fwd PE	29.39

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ILU is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ILU indicates a rather cheap valuation: ILU is cheaper than 81.82% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	23.24
EV/EBITDA	20.63

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.
The decent profitability rating of ILU may justify a higher PE ratio.
ILU's earnings are expected to grow with 33.76% in the coming years. This may justify a more expensive valuation.