Illumina Stock Analysis (NASDAQ:ILMN)

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$175.29 $1.87 (1.06%) ILMN stock closing price Apr 21, 2017 (Closing)
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Illumina
Updated on : Apr 21, 2017
previous close
ILMN 175.3 (0%)
S&P 500 2348.7 (0%)
Closing Price On: Apr 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Biomed-Genetics
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
24.5%
Sector Average:
0.6%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.27B
Debt/Equity Ratio:
 0.56
Compared to the industry
Cash Flow
Operating cash flow:
$280.2M
Net Income:
$123.9M
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ILMN PS :
10.7
Industry PS :
4.6
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
22%
Return on Equity:
21.7%
Free Cash Flow Margin:
32.1%
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Illumina Analysis Video

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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?

  • The TTM operating margin was good at 24.5% for Illumina.
  • LTM Net margins were good at 19.3% for Illumina.
  • The company has an operating cash flow which is 2.3 times the net income. We see this as a positive signal.
  • Illumina's return on invested capital of 22% is good.
  • Illumina has a good Return On Equity (ROE) of 21.7%.
  • Illumina has a healthy FCF (Free Cash Flow) margin of 32.1%.

Should you sell ILMN stock?

  • With a debt/equity ratio of  0.56, Illumina is highly leveraged in comparison to Medical peers.
  • ILMN stock is trading at a PE ratio of 51.7, which is worse than the industry average multiple of 21.5.
  • The company is trading at a price to sales multiple of 10.7, which is higher in comparison to the Medical-Biomed-Genetics industry average of 4.6, making ILMN stock expensive.

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