Illumina Stock Analysis (NASDAQ:ILMN)
Illumina Analysis Video
View Illumina stock analysis video. This is our ILMN analyst opinion covering the buy and sell arguments for ILMN stock.
Illumina, Inc. Stock Rating (3.7/5)
Our Illumina stock opinion is based on fundamentals of the company. This Illumina stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy ILMN stock?
- Illumina had a healthy average operating margin of 24.5% over the last 4 quarters.
- Net margins stood at a healthy 18% (average) for Illumina in the Trailing Twelve Months.
- The company has an operating cash flow which is 3.1 times the net income. We see this as a positive signal.
- Illumina generates a high return on invested capital of 22%.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Illumina at 20.2%.
- The company has a healthy free cash flow margin of 32.1%.
Should you sell ILMN stock?
- Illumina is debt laden and has a high debt/equity ratio of 0.56.
- The ILMN stock currently trades at a PE of 49.2, which is expensive, compared to the industry average of 22.3.
- The company is trading at a price to sales multiple of 10.2, which is higher in comparison to the Medical-Biomed-Genetics industry average of 4.7, making ILMN stock expensive.