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ILMN

Illumina NasdaqGS:ILMN Stock Report

Last Price

US$201.29

Market Cap

US$31.7b

7D

1.6%

1Y

-51.1%

Updated

28 Sep, 2022

Data

Company Financials +
ILMN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

ILMN Stock Overview

Illumina, Inc. provides sequencing and array-based solutions for genetic and genomic analysis.

Illumina, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Illumina
Historical stock prices
Current Share PriceUS$201.29
52 Week HighUS$428.00
52 Week LowUS$173.45
Beta1.16
1 Month Change-4.23%
3 Month Change9.18%
1 Year Change-51.10%
3 Year Change-30.18%
5 Year Change-2.18%
Change since IPO927.73%

Recent News & Updates

Sep 06

Illumina to appeal EU decision to block GRAIL acquisition

Illumina, Inc. (NASDAQ:ILMN) said Tuesday that the company is reviewing the European Commission's (EC) decision prohibiting the acquisition of cancer test developer GRAIL, and it plans to appeal the order. "We are disappointed with the European Commission's decision prohibiting us from acquiring GRAIL back to Illumina," ILMN's General Counsel Charles Dadswell noted. On Monday, Reuters reported that the company was in talks with EU antitrust officials on plans to divest GRAIL ahead of a possible veto on the deal next week. With today's announcement, ILMN said that expecting a divestment order from the EC in the coming months, the company will begin evaluating strategic alternatives for GRAIL if it cannot get a stay order on spinoff pending the appeal.  The EC decision comes after an administrative law judge of the Federal Trade Commission issued a ruling in favor of Illumina (ILMN), handing a setback to U.S. regulator's moves to block the $7.1B deal on antitrust issues.

Aug 30

Illumina Needs Grail, But May Lose It

Summary Illumina stock is near 52-week low, but still has a high P/E ratio. Q2 results show growth continues to be slow compared to the glory years. Era of rapid DNA sequencing revenue growth might be nearing an end. Illumina (ILMN) is the primary maker of DNA sequencing and analysis equipment in the world. It dominates its market, and that market grew rapidly from its inception up until about 2019. Lately y/y growth has been anemic. It is difficult to predict the rate of future growth, and there is a wild card not yet turned over: whether the EU will approve Illumina’s acquisition of Grail. This creates a situation where investor expectations can be quite divergent. This article mainly serves as a warning against assuming the price is near a bottom. ILMN data by YCharts Q2 2022 Results The latest hard data we have is Illumina Q2 2022 results, which were released on August 11, 2022. On a GAAP basis revenue was $1.16 billion, down 5% sequentially from $1.22 billion and up 3% from $1.13 billion in the year-earlier quarter. Net loss was $535 million, down sequentially from net income of $86 million, and down from net income of $185 million year-earlier. Resulting diluted EPS was a loss of $3.40, down sequentially from a gain of $0.55, and down from a gain of $1.26 year-earlier. Even allowing for exclusion of special items, non-GAAP numbers were not so great. Non-GAAP net income was $91 million, down 46% sequentially from $169 million, and down 67% from $276 million year-earlier. Diluted EPS was $0.57, down 47% sequentially from $1.07, and down 70% from $1.87 year-earlier. Cash flow from operations was $125 million and free cash flow was $54 million. No cash was used for stock repurchases and Illumina pays no dividend. But there is still a substantial cash balance, $1.29 billion at the end of the quarter. Some of the issues in the quarter included foreign currency exchange rates, having Grail expenses exceeding revenue, and customers delaying sequencer purchases, likely due to concerns about macroeconomics. Legal costs also had an outsized impact on the quarter. The operating loss at the Grail division was $187 million. Grail was re-acquired (it had been spun off from Illumina) in August 2021, impacting the y/y profit comparisons. Long-term revenue and profit trends Illumina currently has a P/E (price-to-earnings) ratio of 73, a number usually associated with companies rapidly growing revenue and profits. Or over-excited investors, or some combination thereof. Some would argue that Grail will become a source of growth. The reality is we do not know what revenue or profit growth will be going forward. At 3% annual revenue growth a PE of 20 is at the high end of what I would pay. Looking at revenue growth over a longer period, the past 5 years, it is clear growth rates have been inconsistent: Year Revenue in $ billions % Increase from prior year 2017 2.752 15% 2018 3.333 21% 2019 3.543 6% 2020 3.239 -9% 2021 4.526 40% Source: Seeking Alpha ILMN Note that prior years do not make good predictors for any given following year. I believe 2017 and 2018 were in the typical growth spectrum of most of Illumina’s history. Those growth rates sufficient to support a P/E well over 20. 2019 was pre-pandemic and should have been a warning to investors, but it could be treated as at the very low end of the growth rate spectrum. 2020’s decline could be attributed to COVID. But then 2021 not only saw a bounce-back, but part of the revenue was from a need to sequence COVID strains.

Aug 22

Illumina added to positive catalyst watch at Citi despite Q2 miss

Citi analysts have added Illumina (NASDAQ:ILMN) to its 90-day positive catalyst watch and upgraded Bruker Corporation (BRKR) after the life sciences companies reported Q2 2022 results early this month, which fell short of Street forecasts. Q2 2022 marked one of the “most dynamic quarters in recent memory with moves further amplified by crowded investor positioning into the prints,” the analysts wrote. As areas focus, Citi lists adverse market conditions such as COVID lockdown in China, inflationary impact, stronger USD, and pressure on more specialized genomics and sequencing company end markets. The positive areas of focus include pricing power and favorable bioprocessing trends outside COVID.   Citi notes an attractive setup in 2023 for BRKR and upgrades the stock to Buy with the price target raised to $80 from $70 per share. Illumina (ILMN) dropped ~8% a day after the gene sequencing company reported a sequential revenue decline for Q2 2022 amid macro pressures.

Shareholder Returns

ILMNUS Life SciencesUS Market
7D1.6%-1.6%-2.0%
1Y-51.1%-31.3%-20.3%

Return vs Industry: ILMN underperformed the US Life Sciences industry which returned -32.7% over the past year.

Return vs Market: ILMN underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is ILMN's price volatile compared to industry and market?
ILMN volatility
ILMN Average Weekly Movement7.3%
Life Sciences Industry Average Movement9.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: ILMN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ILMN's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19989,825Francis deSouzahttps://www.illumina.com

Illumina, Inc. provides sequencing and array-based solutions for genetic and genomic analysis. Its products and services serve customers in a range of markets enabling the adoption of genomic solutions in research and clinical settings for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. The company provides instruments and consumables used in genetic analysis; and genotyping and sequencing services, instrument service contracts, and development and licensing agreements, as well as cancer detection testing services.

Illumina, Inc. Fundamentals Summary

How do Illumina's earnings and revenue compare to its market cap?
ILMN fundamental statistics
Market CapUS$31.66b
Earnings (TTM)-US$20.00m
Revenue (TTM)US$4.69b

6.7x

P/S Ratio

-1,583x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ILMN income statement (TTM)
RevenueUS$4.69b
Cost of RevenueUS$1.39b
Gross ProfitUS$3.31b
Other ExpensesUS$3.33b
Earnings-US$20.00m

Last Reported Earnings

Jul 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.13
Gross Margin70.49%
Net Profit Margin-0.43%
Debt/Equity Ratio16.7%

How did ILMN perform over the long term?

See historical performance and comparison