Illumina, Inc. (NASDAQ: ILMN)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001110803
P/B 8.91
P/E 30.17
P/S 4.95
Market Cap 21.21 Bn
ROIC (Qtr) 11.02
Div Yield % 0.00
Rev 1y % (Qtr) 0.37
Total Debt (Qtr) 2.50 Bn
Debt/Equity (Qtr) 1.05

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 1.12B provides robust 0.45x coverage of total debt 2.50B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 1.12B provides exceptional 11.22x coverage of interest expenses 100M, showing strong debt service capability.
  • Robust free cash flow of 1B exceeds capital expenditure of 122M by 8.20x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 4.84B provides 5.80x coverage of working capital 834M, indicating strong operational backing.
  • Operating cash flow of 1.12B fully covers other non-current liabilities 334M by 3.36x, showing strong long-term stability.

Cons

  • Operating cash flow of 1.12B barely covers its investment activities of (211M), with a coverage ratio of -5.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (211M) provide weak support for R&D spending of 984M, which is -0.21x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.05B provide limited coverage of acquisition spending of (7M), which is -150x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 1.12B shows concerning coverage of stock compensation expenses of 291M, with a 3.86 ratio indicating potential earnings quality issues.
  • Operating cash flow of 1.12B is outpaced by equity issuance of (673M) (-1.67 ratio), indicating concerning reliance on equity markets for funding operations.

Peer Comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 216.83 Bn 33.00 4.96 35.68 Bn
2 DHR Danaher Corp /De/ 162.47 Bn 46.38 6.69 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 56.88 Bn 55.36 13.65 1.09 Bn
4 A Agilent Technologies, Inc. 39.82 Bn 32.64 5.87 3.41 Bn
5 IQV Iqvia Holdings Inc. 38.85 Bn 30.28 2.44 15.19 Bn
6 NTRA Natera, Inc. 31.32 Bn -101.29 14.80 0.18 Bn
7 MTD Mettler Toledo International Inc/ 28.99 Bn 34.68 7.35 2.21 Bn
8 WAT Waters Corp /De/ 22.92 Bn 35.32 7.38 1.49 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 3.69 2.69
EV to Cash from Ops. 20.32 18.14
EV to Debt 9.13 52.51
EV to EBIT 22.91 19.22
EV to EBITDA 21.61 4.35
EV to Free Cash Flow [EV/FCF] 22.80 2.84
EV to Market Cap 1.07 1.52
EV to Revenue 5.32 4.79
Price to Book Value [P/B] 8.91 1.34
Price to Earnings [P/E] 30.17 22.02

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -1.96
Dividend Payout Ratio % 0.00 2.83
Dividend per Basic Share 0.00 0.19
FCF Dividend Payout Ratio % 0.00 1.92
Interest Coverage 9.95 -126.58

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 18.67 -31.50
Cash and Equivalents Growth (1y) % 20.83 21.37
Dividend Growth (1y) % 0.00 0.24
EBIAT Growth (1y) % 152.49 -55.24
EBITDA Growth (1y) % 235.43 -447.96
EBIT Growth (1y) % 169.10 -40.50
EBT Growth (1y) % 158.42 -70.94
EPS Growth (1y) % 144.92 -70.02
FCF Growth (1y) % 82.82 56.33
Gross Profit Growth (1y) % 1.14 185.11

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.69 0.56
Cash Payout Ratio 0.00 0.01
Cash Ratio 0.54 1.21
Current Ratio 1.43 2.64
Debt to Equity Ratio 1.05 -0.80
Interest Cover Ratio 9.95 -126.58
Times Interest Earned 9.95 -126.58

Profitability

Metric Value Industry Percentile
EBITDA Margin % 29.60 -129.91
EBIT Margin % 23.20 -156.71
EBT Margin % 20.87 -162.23
Gross Margin % 66.20 47.70
Net Profit Margin % 16.40 -189.30