ILLUMINA INC (ILMN)

US4523271090 - Common Stock

135.55  -0.86 (-0.63%)

After market: 135.55 0 (0%)

Fundamental Rating

4

Taking everything into account, ILMN scores 4 out of 10 in our fundamental rating. ILMN was compared to 61 industry peers in the Life Sciences Tools & Services industry. The financial health of ILMN is average, but there are quite some concerns on its profitability. While showing a medium growth rate, ILMN is valued expensive at the moment.



3

1. Profitability

1.1 Basic Checks

ILMN had positive earnings in the past year.
ILMN had a positive operating cash flow in the past year.
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 4 of the past 5 years.

1.2 Ratios

ILMN has a Return On Assets of -11.10%. This is comparable to the rest of the industry: ILMN outperforms 44.26% of its industry peers.
ILMN's Return On Equity of -19.06% is in line compared to the rest of the industry. ILMN outperforms 45.90% of its industry peers.
Industry RankSector Rank
ROA -11.1%
ROE -19.06%
ROIC N/A
ROA(3y)-14.14%
ROA(5y)-4.02%
ROE(3y)-26.62%
ROE(5y)-8.83%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

ILMN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 61.43%, ILMN belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
In the last couple of years the Gross Margin of ILMN has declined.
The Profit Margin and Operating Margin are not available for ILMN so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 61.43%
OM growth 3Y-63.57%
OM growth 5Y-49.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.6%
GM growth 5Y-2.46%

4

2. Health

2.1 Basic Checks

ILMN does not have a ROIC to compare to the WACC, probably because it is not profitable.
ILMN has more 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 has been reduced compared to a year ago.

2.2 Solvency

ILMN has an Altman-Z score of 3.64. This indicates that ILMN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.64, ILMN is doing good in the industry, outperforming 68.85% of the companies in the same industry.
ILMN has a debt to FCF ratio of 8.86. This is a slightly negative value and a sign of low solvency as ILMN would need 8.86 years to pay back of all of its debts.
The Debt to FCF ratio of ILMN (8.86) is better than 63.93% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ILMN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, ILMN is doing worse than 60.66% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 8.86
Altman-Z 3.64
ROIC/WACCN/A
WACC11.75%

2.3 Liquidity

A Current Ratio of 1.69 indicates that ILMN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.69, ILMN is not doing good in the industry: 80.33% of the companies in the same industry are doing better.
ILMN has a Quick Ratio of 1.28. 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 (1.28) is worse than 78.69% of its industry peers.
Industry RankSector Rank
Current Ratio 1.69
Quick Ratio 1.28

5

3. Growth

3.1 Past

The earnings per share for ILMN have decreased strongly by -68.13% in the last year.
Measured over the past years, ILMN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.38% on average per year.
The Revenue has decreased by -4.98% in the past year.
Measured over the past years, ILMN shows a small growth in Revenue. The Revenue has been growing by 6.21% on average per year.
EPS 1Y (TTM)-68.13%
EPS 3Y-42.18%
EPS 5Y-31.38%
EPS growth Q2Q-2.94%
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y11.62%
Revenue growth 5Y6.21%
Revenue growth Q2Q0.36%

3.2 Future

The Earnings Per Share is expected to grow by 61.67% on average over the next years. This is a very strong growth
Based on estimates for the next years, ILMN will show a quite strong growth in Revenue. The Revenue will grow by 10.01% on average per year.
EPS Next Y2.59%
EPS Next 2Y66.65%
EPS Next 3Y81.62%
EPS Next 5Y61.67%
Revenue Next Year0.59%
Revenue Next 2Y5.17%
Revenue Next 3Y8.12%
Revenue Next 5Y10.01%

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 accelerating: in the next years the growth will be better than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 155.80, the valuation of ILMN can be described as expensive.
60.66% of the companies in the same industry are more expensive than ILMN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. ILMN is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 151.87, ILMN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as ILMN.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, ILMN is valued quite expensively.
Industry RankSector Rank
PE 155.8
Fwd PE 151.87

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ILMN is valued a bit cheaper than the industry average as 62.30% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ILMN is valued a bit cheaper than 60.66% of the companies in the same industry.
Industry RankSector Rank
P/FCF 128.13
EV/EBITDA 60.03

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ILMN does not grow enough to justify the current Price/Earnings ratio.
ILMN's earnings are expected to grow with 81.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)60.11
PEG (5Y)N/A
EPS Next 2Y66.65%
EPS Next 3Y81.62%

0

5. Dividend

5.1 Amount

No dividends for ILMN!.
Industry RankSector Rank
Dividend Yield N/A

ILLUMINA INC

NASDAQ:ILMN (2/22/2024, 5:51:32 PM)

After market: 135.55 0 (0%)

135.55

-0.86 (-0.63%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.53B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 155.8
Fwd PE 151.87
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)60.11
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.1%
ROE -19.06%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 61.43%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.69
Quick Ratio 1.28
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-68.13%
EPS 3Y-42.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.98%
Revenue growth 3Y11.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y