ILLUMINA INC (ILMN) Stock Fundamental Analysis
NASDAQ:ILMN - US4523271090 - Common Stock
99.96 USD
+0.79 (+0.8%)
99.96 USD
0 (0%)
ILMN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Life Sciences Tools & Services industry. While ILMN has a great profitability rating, there are some minor concerns on its financial health. ILMN has a correct valuation and a medium 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.
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
The Return On Assets of ILMN (20.67%) is better than 96.36% of its industry peers.
ILMN has a Return On Equity of 55.71%. This is amongst the best in the industry. ILMN outperforms 96.36% of its industry peers.
ILMN's Return On Invested Capital of 15.06% is amongst the best of the industry. ILMN outperforms 89.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.67% | ||
| ROE | 55.71% | ||
| ROIC | 15.06% |
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 98.18% of the companies in the same industry.
Looking at the Operating Margin, with a value of 20.59%, ILMN belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
In the last couple of years the Operating Margin of ILMN has declined.
The Gross Margin of ILMN (66.55%) is better than 92.73% of its industry peers.
In the last couple of years the Gross Margin of ILMN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.59% | ||
| PM (TTM) | 29.37% | ||
| GM | 66.55% |
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
An Altman-Z score of 3.62 indicates that ILMN is not in any danger for bankruptcy at the moment.
ILMN has a Altman-Z score of 3.62. This is in the better half of the industry: ILMN outperforms 72.73% of its industry peers.
The Debt to FCF ratio of ILMN is 1.93, which is an excellent value as it means it would take ILMN, only 1.93 years of fcf income to pay off all of its debts.
ILMN's Debt to FCF ratio of 1.93 is amongst the best of the industry. ILMN outperforms 85.45% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that ILMN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, ILMN is not doing good in the industry: 72.73% 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 | 0.66 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.46
WACC10.31%
2.3 Liquidity
A Current Ratio of 1.81 indicates that ILMN should not have too much problems paying its short term obligations.
ILMN has a worse Current ratio (1.81) than 60.00% of its industry peers.
ILMN has a Quick Ratio of 1.41. This is a normal value and indicates that ILMN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ILMN (1.41) is worse than 65.45% 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 352.17%, 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.
Looking at the last year, ILMN shows a decrease in Revenue. The Revenue has decreased by -3.27% in the last year.
Measured over the past years, ILMN shows a small growth in Revenue. The Revenue has been growing by 4.29% on average per year.
EPS 1Y (TTM)352.17%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%230.56%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-4.77%
3.2 Future
The Earnings Per Share is expected to grow by 23.70% on average over the next years. This is a very strong growth
Based on estimates for the next years, ILMN will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y88.16%
EPS Next 2Y42.23%
EPS Next 3Y31.99%
EPS Next 5Y23.7%
Revenue Next Year-1.41%
Revenue Next 2Y0.66%
Revenue Next 3Y2.3%
Revenue Next 5Y3.57%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 24.03, which indicates a rather expensive current valuation of ILMN.
76.36% of the companies in the same industry are more expensive than ILMN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ILMN to the average of the S&P500 Index (27.13), we can say ILMN is valued inline with the index average.
ILMN is valuated rather expensively with a Price/Forward Earnings ratio of 20.17.
Based on the Price/Forward Earnings ratio, ILMN is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. ILMN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 20.17 |
4.2 Price Multiples
ILMN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ILMN is cheaper than 89.09% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ILMN is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.9 | ||
| EV/EBITDA | 13.77 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
ILMN's earnings are expected to grow with 31.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y42.23%
EPS Next 3Y31.99%
5. Dividend
5.1 Amount
ILMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
99.96
+0.79 (+0.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change-0.18%
Ins Owners0.17%
Ins Owner Change7.25%
Market Cap15.36B
Analysts72
Price Target114.55 (14.6%)
Short Float %4.89%
Short Ratio3.46
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)4.11%
PT rev (3m)-1.61%
EPS NQ rev (1m)8.21%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)6.81%
EPS NY rev (3m)6.53%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 20.17 | ||
| P/S | 3.59 | ||
| P/FCF | 14.9 | ||
| P/OCF | 13.31 | ||
| P/B | 6.8 | ||
| P/tB | 16.94 | ||
| EV/EBITDA | 13.77 |
EPS(TTM)4.16
EY4.16%
EPS(NY)4.96
Fwd EY4.96%
FCF(TTM)6.71
FCFY6.71%
OCF(TTM)7.51
OCFY7.51%
SpS27.87
BVpS14.69
TBVpS5.9
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.67% | ||
| ROE | 55.71% | ||
| ROCE | 19.07% | ||
| ROIC | 15.06% | ||
| ROICexc | 20.07% | ||
| ROICexgc | 32.87% | ||
| OM | 20.59% | ||
| PM (TTM) | 29.37% | ||
| GM | 66.55% | ||
| 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
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 | 0.66 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 44.24% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.48% | ||
| Profit Quality | 81.96% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.62 |
F-Score6
WACC10.31%
ROIC/WACC1.46
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)352.17%
EPS 3Y-25.65%
EPS 5Y-17.93%
EPS Q2Q%230.56%
EPS Next Y88.16%
EPS Next 2Y42.23%
EPS Next 3Y31.99%
EPS Next 5Y23.7%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y-1.15%
Revenue growth 5Y4.29%
Sales Q2Q%-4.77%
Revenue Next Year-1.41%
Revenue Next 2Y0.66%
Revenue Next 3Y2.3%
Revenue Next 5Y3.57%
EBIT growth 1Y265.98%
EBIT growth 3YN/A
EBIT growth 5Y-7.67%
EBIT Next Year30.52%
EBIT Next 3Y15.06%
EBIT Next 5Y14.59%
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%