NasdaqGS:ILMN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Risks

  • Illumina has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

1.9%

NasdaqGS:ILMN

0.5%

US Life Sciences

0.2%

US Market


1 Year Return

-13.5%

NasdaqGS:ILMN

9.0%

US Life Sciences

-0.7%

US Market

ILMN underperformed the Life Sciences industry which returned 9% over the past year.

ILMN underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

ILMNIndustryMarket
7 Day1.9%0.5%0.2%
30 Day-2.6%-4.0%-2.7%
90 Day-6.0%1.2%1.6%
1 Year-13.5%-13.5%9.3%9.0%1.6%-0.7%
3 Year71.3%71.3%69.2%67.8%40.0%30.9%
5 Year61.4%61.4%107.8%97.9%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

45.53x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Illumina's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Illumina's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Illumina is overvalued based on earnings compared to the US Life Sciences industry average.

Illumina is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Illumina is poor value based on expected growth next year.


Price Based on Value of Assets

Illumina is overvalued based on assets compared to the US Life Sciences industry average.


Next Steps

Future Growth

How is Illumina expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Illumina's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

Illumina's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Illumina's revenue growth is expected to exceed the United States of America market average.

Illumina's earnings growth is positive but not above the United States of America market average.

Illumina's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Illumina is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Illumina performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Illumina has delivered over 20% year on year earnings growth in the past 5 years.

Illumina's 1-year earnings growth exceeds its 5-year average (45% vs 20.2%)

Illumina's earnings growth has not exceeded the US Life Sciences industry average in the past year (45% vs 45%).


Return on Equity

Illumina has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Illumina used its assets more efficiently than the US Life Sciences industry average last year based on Return on Assets.


Return on Capital Employed

Illumina's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Illumina's financial position?


Financial Position Analysis

Illumina is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Illumina's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Illumina's level of debt (25.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (117.2% vs 25.9% today).

Debt is well covered by operating cash flow (83.3%, greater than 20% of total debt).

Illumina earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Illumina's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Illumina's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Illumina has not reported any payouts.

Unable to verify if Illumina's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Illumina has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Illumina's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Francis deSouza (48yo)

3.1yrs

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

Francis's remuneration is about average for companies of similar size in United States of America.

Francis's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

The average tenure for the Illumina management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

60yo

Average Age

The tenure for the Illumina board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jay Flatley (66yo)

    Executive Chairman

    • Tenure: 3.1yrs
    • Compensation: US$3.26m
  • Bob Ragusa (59yo)

    Senior Vice President of Global Quality and Operations

    • Tenure: 0.6yrs
  • Karen McGinnis (52yo)

    VP & Chief Accounting Officer

    • Tenure: 1.8yrs
  • Omead Ostadan (47yo)

    Senior Vice President of Products

    • Tenure: 0.6yrs
    • Compensation: US$4.72m
  • Mostafa Ronaghi (50yo)

    CTO & Senior VP

    • Tenure: 11.6yrs
    • Compensation: US$3.45m
  • Francis deSouza (48yo)

    CEO, President & Director

    • Tenure: 3.1yrs
    • Compensation: US$11.07m
  • Aimee Hoyt (48yo)

    Chief People Officer & Senior VP

    • Tenure: 1.6yrs
    • Compensation: US$3.86m
  • Sam Samad (49yo)

    CFO & Senior VP

    • Tenure: 2.6yrs
    • Compensation: US$2.90m
  • Paula Dowdy

    Senior VP & GM of Commercial Operations-Europe

    • Tenure: 0.6yrs
  • Garret Hampton (53yo)

    Senior Vice President of Clinical Genomics

    • Tenure: 2.6yrs
    • Compensation: US$3.59m

Board Members

  • John Thompson (70yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$487.03k
  • Caroline Dorsa (60yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$476.36k
  • Sue Siegel (58yo)

    Director

    • Tenure: 0.5yrs
  • Jay Flatley (66yo)

    Executive Chairman

    • Tenure: 3.1yrs
    • Compensation: US$3.26m
  • Phil Schiller (59yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$466.93k
  • Rob Epstein (64yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$489.42k
  • Gary Guthart (53yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$467.76k
  • Frances Arnold (62yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$471.93k
  • Francis deSouza (48yo)

    CEO, President & Director

    • Tenure: 3.1yrs
    • 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$42.704b
  • 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
ILMN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2000
ILMNWBAG (Wiener Boerse AG)YesCommon StockATEURJul 2000
0J8ZLSE (London Stock Exchange)YesCommon StockGBUSDJul 2000
ILMNETLX (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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:37
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.