ILLUMINA INC (ILMN) Stock Fundamental Analysis
USA - NASDAQ:ILMN - US4523271090 - Common Stock
91 USD
-4.03 (-4.24%)
92.63 USD
+1.63 (+1.79%)
Overall ILMN gets a fundamental rating of 6 out of 10. We evaluated ILMN against 56 industry peers in the Life Sciences Tools & Services industry. ILMN scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ILMN. With these ratings, ILMN could be worth investigating further for value investing!.
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 20.67%. This is amongst the best in the industry. ILMN outperforms 96.43% of its industry peers.
The Return On Equity of ILMN (55.71%) is better than 96.43% of its industry peers.
ILMN has a Return On Invested Capital of 15.46%. This is amongst the best in the industry. ILMN outperforms 91.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.67% | ||
| ROE | 55.71% | ||
| ROIC | 15.46% |
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
Looking at the Profit Margin, with a value of 29.37%, ILMN belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
ILMN has a Operating Margin of 21.13%. This is amongst the best in the industry. ILMN outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of ILMN has declined.
ILMN has a Gross Margin of 67.09%. This is amongst the best in the industry. ILMN outperforms 92.86% of its industry peers.
ILMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 29.37% | ||
| GM | 67.09% |
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
ILMN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
ILMN has an Altman-Z score of 3.42. This indicates that ILMN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ILMN (3.42) is better than 67.86% 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 has a Debt to FCF ratio of 1.93. This is amongst the best in the industry. ILMN outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that ILMN is somewhat dependend on debt financing.
The Debt to Equity ratio of ILMN (0.66) is worse than 71.43% 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 | 0.66 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.5
WACC10.28%
2.3 Liquidity
A Current Ratio of 1.81 indicates that ILMN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.81, ILMN perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that ILMN should not have too much problems paying its short term obligations.
ILMN has a worse Quick ratio (1.41) than 64.29% 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.
The Revenue has been growing slightly by 4.29% on average over the past years.
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
Based on estimates for the next years, ILMN will show a very strong growth in Earnings Per Share. The EPS will grow by 23.91% on average per year.
Based on estimates for the next years, ILMN will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y88.03%
EPS Next 2Y42%
EPS Next 3Y31.75%
EPS Next 5Y23.91%
Revenue Next Year-1.41%
Revenue Next 2Y0.64%
Revenue Next 3Y2.25%
Revenue Next 5Y3.67%
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
With a Price/Earnings ratio of 21.88, ILMN is valued on the expensive side.
ILMN's Price/Earnings ratio is rather cheap when compared to the industry. ILMN is cheaper than 80.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of ILMN to the average of the S&P500 Index (27.49), we can say ILMN is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.42, which indicates a rather expensive current valuation of ILMN.
Based on the Price/Forward Earnings ratio, ILMN is valued cheaper than 82.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ILMN to the average of the S&P500 Index (22.99), we can say ILMN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ILMN is valued cheaper than 96.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ILMN is valued cheaply inside the industry as 94.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 12.34 |
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 ILMN may justify a higher PE ratio.
A more expensive valuation may be justified as ILMN's earnings are expected to grow with 31.75% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y42%
EPS Next 3Y31.75%
5. Dividend
5.1 Amount
ILMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91
-4.03 (-4.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-0.24%
Ins Owners0.18%
Ins Owner Change2.39%
Market Cap13.99B
Analysts71.72
Price Target113.85 (25.11%)
Short Float %4.79%
Short Ratio4.19
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)-0.61%
PT rev (3m)3.34%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)8.61%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)6.74%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 18.42 | ||
| P/S | 3.26 | ||
| P/FCF | 13.57 | ||
| P/OCF | 12.12 | ||
| P/B | 6.19 | ||
| P/tB | 15.42 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)4.16
EY4.57%
EPS(NY)4.94
Fwd EY5.43%
FCF(TTM)6.71
FCFY7.37%
OCF(TTM)7.51
OCFY8.25%
SpS27.87
BVpS14.69
TBVpS5.9
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.67% | ||
| ROE | 55.71% | ||
| ROCE | 19.56% | ||
| ROIC | 15.46% | ||
| ROICexc | 20.6% | ||
| ROICexgc | 33.72% | ||
| OM | 21.13% | ||
| PM (TTM) | 29.37% | ||
| GM | 67.09% | ||
| 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 | 1.26 | ||
| Cap/Depr | 44.24% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.55% | ||
| Profit Quality | 81.96% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.42 |
F-Score6
WACC10.28%
ROIC/WACC1.5
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 Y88.03%
EPS Next 2Y42%
EPS Next 3Y31.75%
EPS Next 5Y23.91%
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 2Y0.64%
Revenue Next 3Y2.25%
Revenue Next 5Y3.67%
EBIT growth 1Y275.52%
EBIT growth 3YN/A
EBIT growth 5Y-7.67%
EBIT Next Year30.85%
EBIT Next 3Y15.15%
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%