ILLUMINA INC (ILMN) Stock Fundamental Analysis
NASDAQ:ILMN - Nasdaq - US4523271090 - Common Stock - Currency: USD
Taking everything into account, ILMN scores 5 out of 10 in our fundamental rating. ILMN was compared to 55 industry peers in the Life Sciences Tools & Services industry. ILMN has an average financial health and profitability rating. ILMN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ILMN was profitable.
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 (-15.61%) is comparable to the rest of the industry.
The Return On Equity of ILMN (-40.75%) is worse than 63.64% of its industry peers.
ILMN has a better Return On Invested Capital (15.23%) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.61% | ||
| ROE | -40.75% | ||
| ROIC | 15.23% |
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
ILMN's Operating Margin of 21.07% is amongst the best of the industry. ILMN outperforms 87.27% of its industry peers.
In the last couple of years the Operating Margin of ILMN has declined.
ILMN's Gross Margin of 66.34% is amongst the best of the industry. ILMN outperforms 92.73% of its industry peers.
ILMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.07% | ||
| PM (TTM) | N/A | ||
| GM | 66.34% |
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.
The number of shares outstanding for ILMN remains at a similar level compared to 1 year ago.
The number of shares outstanding for ILMN has been increased compared to 5 years ago.
Compared to 1 year ago, ILMN has a worse debt to assets ratio.
2.2 Solvency
ILMN has an Altman-Z score of 3.28. This indicates that ILMN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ILMN (3.28) is better than 69.09% of its industry peers.
The Debt to FCF ratio of ILMN is 2.27, which is a good value as it means it would take ILMN, 2.27 years of fcf income to pay off all of its debts.
ILMN has a better Debt to FCF ratio (2.27) than 87.27% of its industry peers.
ILMN has a Debt/Equity ratio of 0.63. This is a neutral value indicating ILMN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, ILMN is not doing good in the industry: 67.27% of the companies in the same industry are doing better.
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 | 0.63 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 3.28 |
ROIC/WACC1.47
WACC10.35%
2.3 Liquidity
A Current Ratio of 1.86 indicates that ILMN should not have too much problems paying its short term obligations.
The Current ratio of ILMN (1.86) is worse than 60.00% of its industry peers.
ILMN has a Quick Ratio of 1.48. 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 worse Quick ratio (1.48) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
ILMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 278.41%, which is quite impressive.
The earnings per share for ILMN have been decreasing by -17.93% on average. This is quite bad
ILMN shows a decrease in Revenue. In the last year, the revenue decreased by -3.47%.
The Revenue has been growing slightly by 4.29% on average over the past years.
EPS 1Y (TTM)278.41%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%977.78%
Revenue 1Y (TTM)-3.47%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-3.25%
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 23.52% on average per year.
ILMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
EPS Next Y76.62%
EPS Next 2Y39.83%
EPS Next 3Y30.88%
EPS Next 5Y23.52%
Revenue Next Year-2.06%
Revenue Next 2Y0.54%
Revenue Next 3Y2.28%
Revenue Next 5Y4.8%
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
The Price/Earnings ratio is 25.35, which means the current valuation is very expensive for ILMN.
ILMN's Price/Earnings ratio is a bit cheaper when compared to the industry. ILMN is cheaper than 70.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of ILMN to the average of the S&P500 Index (26.17), we can say ILMN is valued inline with the index average.
A Price/Forward Earnings ratio of 17.62 indicates a rather expensive valuation of ILMN.
Based on the Price/Forward Earnings ratio, ILMN is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ILMN to the average of the S&P500 Index (22.10), we can say ILMN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 17.62 |
4.2 Price Multiples
ILMN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ILMN is cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ILMN is valued cheaper than 89.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.26 | ||
| EV/EBITDA | 11.39 |
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.
A more expensive valuation may be justified as ILMN's earnings are expected to grow with 30.88% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y39.83%
EPS Next 3Y30.88%
5. Dividend
5.1 Amount
ILMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.43
+1.94 (+2.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners104.43%
Inst Owner Change0.04%
Ins Owners0.14%
Ins Owner Change6.7%
Market Cap13.37B
Analysts73.55
Price Target116.42 (37.89%)
Short Float %3.52%
Short Ratio2.4
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)-3.22%
Min EPS beat(2)-7.76%
Max EPS beat(2)1.33%
EPS beat(4)2
Avg EPS beat(4)-10.12%
Min EPS beat(4)-60.91%
Max EPS beat(4)26.88%
EPS beat(8)6
Avg EPS beat(8)314.25%
EPS beat(12)9
Avg EPS beat(12)229.49%
EPS beat(16)13
Avg EPS beat(16)180.02%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.95%
Max Revenue beat(2)-0.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.91%
Revenue beat(8)3
Avg Revenue beat(8)-0.59%
Revenue beat(12)4
Avg Revenue beat(12)-1.16%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)-11.49%
PT rev (3m)-22.29%
EPS NQ rev (1m)-7.89%
EPS NQ rev (3m)-9.21%
EPS NY rev (1m)-4.79%
EPS NY rev (3m)-6.2%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 17.62 | ||
| P/S | 3.08 | ||
| P/FCF | 15.26 | ||
| P/OCF | 13.37 | ||
| P/B | 5.64 | ||
| P/tB | 13.68 | ||
| EV/EBITDA | 11.39 |
EPS(TTM)3.33
EY3.94%
EPS(NY)4.79
Fwd EY5.67%
FCF(TTM)5.53
FCFY6.55%
OCF(TTM)6.32
OCFY7.48%
SpS27.4
BVpS14.96
TBVpS6.17
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.61% | ||
| ROE | -40.75% | ||
| ROCE | 19.27% | ||
| ROIC | 15.23% | ||
| ROICexc | 20.6% | ||
| ROICexgc | 34.16% | ||
| OM | 21.07% | ||
| PM (TTM) | N/A | ||
| GM | 66.34% | ||
| FCFM | 20.2% |
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
ROICexcg growth 3YN/A
ROICexcg 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 | 0.63 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 39.37% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 3.28 |
F-Score6
WACC10.35%
ROIC/WACC1.47
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)278.41%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%977.78%
EPS Next Y76.62%
EPS Next 2Y39.83%
EPS Next 3Y30.88%
EPS Next 5Y23.52%
Revenue 1Y (TTM)-3.47%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-3.25%
Revenue Next Year-2.06%
Revenue Next 2Y0.54%
Revenue Next 3Y2.28%
Revenue Next 5Y4.8%
EBIT growth 1Y1675.86%
EBIT growth 3YN/A
EBIT growth 5Y-7.67%
EBIT Next Year26.49%
EBIT Next 3Y15.01%
EBIT Next 5Y16.87%
FCF growth 1Y484.21%
FCF growth 3Y28.14%
FCF growth 5Y-3.38%
OCF growth 1Y334.78%
OCF growth 3Y15.37%
OCF growth 5Y-4.45%