NasdaqGS:ILMN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.4%

ILMN

2.0%

US Life Sciences

1.5%

US Market


1 Year Return

26.2%

ILMN

23.0%

US Life Sciences

6.9%

US Market

Return vs Industry: ILMN exceeded the US Life Sciences industry which returned 23% over the past year.

Return vs Market: ILMN exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

ILMNIndustryMarket
7 Day3.4%2.0%1.5%
30 Day9.7%10.4%5.9%
90 Day26.0%22.4%17.9%
1 Year26.2%26.2%23.3%23.0%9.2%6.9%
3 Year119.9%119.9%89.5%88.2%36.4%27.5%
5 Year75.8%75.8%130.6%127.7%64.9%47.0%

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?

59.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ILMN ($382.33) is trading above our estimate of fair value ($163.2)

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 (59.7x) compared to the US Life Sciences industry average (37.4x).

PE vs Market: ILMN is poor value based on its PE Ratio (59.7x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: ILMN is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ILMN is overvalued based on its PB Ratio (12.1x) compared to the US Life Sciences industry average (6x).


Next Steps

Future Growth

How is Illumina forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ILMN's forecast earnings growth (26.8% per year) is above the savings rate (2.2%).

Earnings vs Market: ILMN's earnings (26.8% per year) are forecast to grow faster than the US market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ILMN's revenue (15.5% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: ILMN's revenue (15.5% 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 high in 3 years time (21.4%)


Next Steps

Past Performance

How has Illumina performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ILMN has high quality earnings.

Growing Profit Margin: ILMN's current net profit margins (26.5%) are higher than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: ILMN's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: ILMN's earnings growth over the past year (10.7%) is below its 5-year average (17.6% per year).

Earnings vs Industry: ILMN earnings growth over the past year (10.7%) exceeded the Life Sciences industry 9.7%.


Return on Equity

High ROE: ILMN's Return on Equity (20.3%) is considered high.


Next Steps

Financial Health

How is Illumina's financial position?


Financial Position Analysis

Short Term Liabilities: ILMN's short term assets ($4.3B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: ILMN's short term assets ($4.3B) exceed its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: ILMN's debt to equity ratio (24.8%) is considered satisfactory.

Reducing Debt: ILMN's debt to equity ratio has reduced from 80% to 24.8% over the past 5 years.

Debt Coverage: ILMN's debt is well covered by operating cash flow (98.5%).

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Francis deSouza (49yo)

4yrs

Tenure

US$1,521,949

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 ($USD1.52M) is below average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Francis's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Francis deSouza
CEO, President & Director4yrsUS$1.52m0.039% $22.0m
Sam Samad
CFO & Senior VP3.5yrsUS$626.70kno data
Joydeep Goswami
Senior VP of Corporate Development & Strategic Planning0.83yrUS$1.98mno data
Aimee Hoyt
Chief People Officer & Senior VP2.5yrsUS$864.07k0.0024% $1.3m
Robert Ragusa
Senior Vice President of Global Quality & Operations7.5yrsno data0.0054% $3.0m
Karen McGinnis
VP & Chief Accounting Officer2.67yrsno data0.0013% $708.2k
Alexander Aravanis
Senior VP & Chief Technology Officer0.083yrno datano data
Jacquie Ross
Vice President of IR0.33yrno datano data
Charles Dadswell
Senior VP7.25yrsUS$1.73m0.0026% $1.5m
Eric Endicott
Senior Director of Corporate Communicationsno datano datano data
Mostafa Ronaghi
Senior Vice President of Entrepreneurial Developmentno dataUS$3.45m0.055% $31.0m
Sanjay Chikarmane
Senior VP of Enterprise Informatics Business & GM of Enterprise Informatics Business5yrsno datano data

3.1yrs

Average Tenure

50.5yo

Average Age

Experienced Management: ILMN's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Francis deSouza
CEO, President & Director4yrsUS$1.52m0.039% $22.0m
John Thompson
Lead Independent Director2.17yrsUS$500.20k0.0048% $2.7m
Caroline Dorsa
Independent Director3.5yrsUS$501.48k0.0055% $3.1m
Susan Siegel
Independent Director1.42yrsUS$1.26m0.0028% $1.6m
Jay Flatley
Chairman4yrsUS$3.26m0.16% $89.5m
Philip Schiller
Independent Director4yrsUS$476.85k0.0062% $3.5m
Robert Epstein
Independent Director7.67yrsUS$497.62k0.0027% $1.5m
Gary Guthart
Independent Director2.58yrsUS$491.85k0.0039% $2.2m
Frances Arnold
Independent Director4.5yrsUS$481.85k0.0068% $3.8m
Scott Gottlieb
Independent Director0.42yrno data0.00027% $151.7k

3.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ILMN's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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$56.203b
  • 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
I1LM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLJan 2020

Biography

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. Its customers include genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. The company markets and distributes its products directly to customers in North America, Europe, Latin America, and the Asia-Pacific region, as well as sells through life-science distributors in certain markets within Europe, the Asia-Pacific region, Latin America, the Middle East, and 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 Analysis2020/07/15 23:47
End of Day Share Price2020/07/15 00:00
Earnings2020/03/29
Annual Earnings2019/12/29


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.