NasdaqGS:ILMN

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 9.36% per year

Earnings grew by 42.3% over the past year

Risk Analysis

No risks detected for ILMN from our risk checks.


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Illumina's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ILMN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

ILMN

-0.2%

US Life Sciences

-0.09%

US Market


1 Year Return

8.6%

ILMN

29.0%

US Life Sciences

23.9%

US Market

Return vs Industry: ILMN underperformed the US Life Sciences industry which returned 29.7% over the past year.

Return vs Market: ILMN underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ILMNIndustryMarket
7 Day0.3%-0.2%-0.09%
30 Day-2.5%2.1%3.1%
90 Day12.5%15.7%10.4%
1 Year8.6%8.6%29.3%29.0%26.6%23.9%
3 Year104.2%104.2%108.8%107.4%50.9%41.2%
5 Year63.5%63.5%136.9%133.7%78.1%58.5%

Price Volatility Vs. Market

How volatile is Illumina's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Illumina undervalued compared to its fair value and its price relative to the market?

49.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ILMN ($317.11) is trading above our estimate of fair value ($173.19)

Significantly Below Fair Value: ILMN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ILMN is poor value based on its PE Ratio (47.9x) compared to the Life Sciences industry average (37.4x).

PE vs Market: ILMN is poor value based on its PE Ratio (47.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ILMN is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: ILMN is overvalued based on its PB Ratio (10.5x) compared to the US Life Sciences industry average (5.3x).


Next Steps

Future Growth

How is Illumina forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ILMN's forecast earnings growth (9.4% per year) is above the savings rate (1.7%).

Earnings vs Market: ILMN's earnings (9.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: ILMN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ILMN's revenue (11.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: ILMN's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ILMN's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has Illumina performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ILMN has high quality earnings.

Growing Profit Margin: ILMN's current net profit margins (28.1%) are higher than last year (21.1%).


Past Earnings Growth Analysis

Earnings Trend: ILMN's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: ILMN's earnings growth over the past year (42.3%) exceeds its 5-year average (19.2% per year).

Earnings vs Industry: ILMN earnings growth over the past year (42.3%) exceeded the Life Sciences industry 34.6%.


Return on Equity

High ROE: ILMN's Return on Equity (21.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Illumina's financial position?


Financial Position Analysis

Short Term Liabilities: ILMN's short term assets ($4.2B) exceed its short term liabilities ($619.0M).

Long Term Liabilities: ILMN's short term assets ($4.2B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: ILMN's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: ILMN's debt to equity ratio has reduced from 100.2% to 25.5% over the past 5 years.

Debt Coverage: ILMN's debt is well covered by operating cash flow (80.3%).

Interest Coverage: ILMN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ILMN has a high level of physical assets or inventory.

Debt Coverage by Assets: ILMN's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Illumina's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ILMN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ILMN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ILMN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ILMN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ILMN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Illumina's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Francis deSouza (48yo)

3.5yrs

Tenure

US$11,067,566

Compensation

Mr. Francis A. deSouza has been the Chief Executive Officer of Illumina Inc. since July 5, 2016 and as its President since December, 2013. Mr. deSouza served as President of Products & Services at Symantec ...


CEO Compensation Analysis

Compensation vs Market: Francis's total compensation ($USD11.07M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Francis's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

50yo

Average Age

Experienced Management: ILMN's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

60yo

Average Age

Experienced Board: ILMN's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jay Flatley (66yo)

    Executive Chairman

    • Tenure: 3.5yrs
    • Compensation: US$3.26m
  • Bob Ragusa (59yo)

    Senior Vice President of Global Quality and Operations

    • Tenure: 1yrs
  • Karen McGinnis (52yo)

    VP & Chief Accounting Officer

    • Tenure: 2.2yrs
  • Jacquie Ross

    Vice President of Investor Relations

    • Omead Ostadan (47yo)

      Chief Product & Marketing Officer

      • Tenure: 1yrs
      • Compensation: US$4.72m
    • Mostafa Ronaghi (50yo)

      CTO & Senior VP

      • Tenure: 12yrs
      • Compensation: US$3.45m
    • Chuck Dadswell (60yo)

      Senior VP

      • Tenure: 6.8yrs
      • Compensation: US$1.73m
    • Francis deSouza (48yo)

      CEO, President & Director

      • Tenure: 3.5yrs
      • Compensation: US$11.07m
    • Aimee Hoyt (48yo)

      Chief People Officer & Senior VP

      • Tenure: 2yrs
      • Compensation: US$3.86m
    • Sam Samad (49yo)

      CFO & Senior VP

      • Tenure: 3yrs
      • Compensation: US$2.90m

    Board Members

    • John Thompson (70yo)

      Lead Independent Director

      • Tenure: 1.7yrs
      • Compensation: US$487.03k
    • Caroline Dorsa (60yo)

      Independent Director

      • Tenure: 3yrs
      • Compensation: US$476.36k
    • Sue Siegel (58yo)

      Independent Director

      • Tenure: 0.9yrs
    • Jay Flatley (66yo)

      Executive Chairman

      • Tenure: 3.5yrs
      • Compensation: US$3.26m
    • Phil Schiller (59yo)

      Independent Director

      • Tenure: 3.5yrs
      • Compensation: US$466.93k
    • Rob Epstein (64yo)

      Independent Director

      • Tenure: 7.2yrs
      • Compensation: US$489.42k
    • Gary Guthart (53yo)

      Independent Director

      • Tenure: 2.1yrs
      • Compensation: US$467.76k
    • Frances Arnold (62yo)

      Independent Director

      • Tenure: 4yrs
      • Compensation: US$471.93k
    • Francis deSouza (48yo)

      CEO, President & Director

      • Tenure: 3.5yrs
      • Compensation: US$11.07m

    Company Information

    Illumina, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Illumina, Inc.
    • Ticker: ILMN
    • Exchange: NasdaqGS
    • Founded: 1998
    • Industry: Life Sciences Tools and Services
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$48.069b
    • Shares outstanding: 147.00m
    • Website: https://www.illumina.com

    Number of Employees


    Location

    • Illumina, Inc.
    • 5200 Illumina Way
    • San Diego
    • California
    • 92122
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ILMNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2000
    ILUDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2000
    ILUXTRA (XETRA Trading Platform)YesCommon StockDEEURJul 2000
    ILMN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2000
    ILMNWBAG (Wiener Boerse AG)YesCommon StockATEURJul 2000
    0J8ZLSE (London Stock Exchange)YesCommon StockGBUSDJul 2000
    ILUETLX (Eurotlx)YesCommon StockITEURJul 2000

    Biography

    Illumina, Inc. provides sequencing and array-based solutions for genetic analysis. The company operates in two segments, Core Illumina and Consolidated VIEs. It offers sequencing that provides researchers with various applications and the ability to sequence mammalian genomes; and arrays for a range of deoxyribonucleic acid and RNA analysis applications, including single nucleotide polymorphism genotyping, copy number variations analysis, gene expression analysis, and methylation analysis, as well as enables the detection of known genetic markers on a single array. The company also provides various library preparation and sequencing kits to simplify workflows and accelerate analysis; and genome sequencing, genotyping, and noninvasive prenatal testing, as well as products support services. It serves genomic research centers, academic institutions, government laboratories, and hospitals; and pharmaceutical, biotechnology, and commercial molecular diagnostic laboratories, as well as consumer genomics companies. The company markets and distributes its products directly to customers, as well as through life-science distributors. Illumina, Inc. has a partnership with Lundbeck Foundation GeoGenetics Centre for exploring the relationship between the evolutionary history of select mental and neurological disorders and infectious pathogens; and an agreement with HTG Molecular Diagnostics, Inc. for the development of nuclease-protection-based RNA or DNA profiling tests. It operates in North America, Europe, Latin America, the Asia-Pacific region, the Middle East, and South Africa. Illumina, Inc. was founded in 1998 and is headquartered in San Diego, California. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 23:44
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/29
    Annual Earnings2018/12/30


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.