Illumina, Inc. (ILMN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Halozyme Therapeutics, Inc.

Gilead Sciences, Inc.

BioMarin Pharmaceutical, Inc.

Amgen, Inc.

Moderna, Inc.

Biogen, Inc.

Illumina, Inc.

Elanco Animal Health, Inc.

Bio-Techne Corp.

Vaxcyte, Inc.

Immunovant, Inc.

Why is Illumina, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 6.07% of over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(HY) At USD 289.83 MM has Grown at 205.01%
OPERATING CASH FLOW(Y) Highest at USD 1,154 MM
ROCE(HY) Highest at 68.11%

With ROCE of 44.33%, it has a risky valuation with a 5.36 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.86%, its profits have risen by 365.7% ; the PEG ratio of the company is 0.1

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.86% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Illumina, Inc. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Illumina, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Illumina, Inc.

-8.94%

0.43

49.58%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.02%

EBIT Growth (5y)

6.07%

EBIT to Interest (avg)

5.03

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.80

Tax Ratio

8.92%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

14.04%

ROE (avg)

8.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.89

EV to EBIT

12.09

EV to EBITDA

9.89

EV to Capital Employed

5.36

EV to Sales

3.95

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

44.33%

ROE (Latest)

26.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

NET PROFIT(HY)

At USD 289.83 MM has Grown at 205.01%

OPERATING CASH FLOW(Y)

Highest at USD 1,154 MM

ROCE(HY)

Highest at 68.11%

RAW MATERIAL COST(Y)

Fallen by -4.68% (YoY

-5What is not working for the Company

INTEREST(HY)

At USD 50 MM has Grown at 31.58%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.48 times

Here's what is working for Illumina, Inc.

Net Profit

At USD 289.83 MM has Grown at 205.01%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 1,154 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -4.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Illumina, Inc.

Interest

At USD 50 MM has Grown at 31.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 2.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio