Illumina Inc

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ILMN : NASDAQ : Health Care
$180.98 up 0.63 | 0.35%
Today's Range: 178.55 - 181.32
Avg. Daily Volume: 1,062,100
09/28/16 - 4:00 PM ET

Financial Analysis


ILLUMINA INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ILLUMINA INC is extremely liquid. Currently, the Quick Ratio is 3.09 which clearly shows the ability to cover any short-term cash needs. ILMN managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 14.59% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)600.12539.38
EBITDA ($mil)185.73186.44
EBIT ($mil)151.38155.74
Net Income ($mil)120.41102.25


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1425.261510.38
Total Assets ($mil)3985.093703.13
Total Debt ($mil)1031.881303.28
Equity ($mil)2055.771793.91


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin76.3475.47
EBITDA Margin30.9434.56
Operating Margin25.2228.87
Sales Turnover0.580.56
Return on Assets10.8513.11
Return on Equity21.0427.07
Debt Q2 FY16 Q2 FY15
Current Ratio3.693.09
Debt/Capital0.330.42
Interest Expense8.1511.21
Interest Coverage18.5813.9


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)146.6144.7
Div / share0.00.0
EPS0.820.69
Book value / share14.0212.4
Institutional Own % n/a n/a
Avg Daily Volume1150100.01415889.0

Valuation


BUY. ILLUMINA INC's P/E ratio indicates a significant premium compared to an average of 38.39 for the Life Sciences Tools & Services industry and a significant premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 12.79 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 8.50. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ILLUMINA INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ILMN 61.63 Peers 38.39   ILMN 38.94 Peers 22.58

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ILMN is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ILMN is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ILMN 44.12 Peers 27.15   ILMN 4.44 Peers 1.30

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ILMN is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ILMN trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ILMN 12.79 Peers 8.50   ILMN -11.01 Peers 81.69

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ILMN is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ILMN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ILMN 11.36 Peers 37.16   ILMN 11.72 Peers 12.84

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ILMN is trading at a significant discount to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

ILMN is keeping pace with its peers on the basis of sales growth.

 

 

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