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Illumina (ILMN)
NASDAQ:ILMN
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Illumina
(NASDAQ:ILMN)49Neutral
Positive Factors
Negative Factors
Competitive Threats
Roche's new sequencing technology could challenge Illumina’s market leadership and pricing power.
International Trade Restrictions
China's Ministry of Commerce announced a ban on imports of genetic sequencers from Illumina, which will significantly limit Illumina's instrument sales to Chinese customers.
Market Performance
Illumina shares are down approximately 33% year-to-date, facing new headwinds from China, potential funding cuts, and competition.
Illumina (ILMN) vs. S&P 500 (SPY)
Market Cap
$13.45B
Dividend YieldN/A
Average Volume (3M)3.01M
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-2.93%
EPS Growth-4.69%
CountryUS
Employees10,370
SectorHealthcare
Sector Strength74
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)-7.72
Shares Outstanding158,400,000
10 Day Avg. Volume3,373,379
30 Day Avg. Volume3,008,394
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.05
Price to Cash Flow (P/CF)9.20
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$137.87Price Target Upside60.89% Upside
Rating ConsensusHold
Number of Analyst Covering16
Illumina Business Overview & Revenue Model
Company DescriptionIncorporated in 1998, Illumina, Inc. is a California-based company which develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. Its products and services serve customers in the research, clinical and applied markets, and enable the adoption of a variety of genomic solutions. The company's products include microarray scanners, sequencing reagents, and onsite training selector. Its services include sequencing and microarray services; proactive instrument monitoring; and instrument services, training, and consulting.
How the Company Makes MoneyIllumina generates revenue through the sale of its sequencing and microarray systems, along with associated consumables and software. A significant portion of its income comes from consumables, which are recurring purchases necessary for operating its equipment. Additionally, the company offers services such as sequencing-as-a-service and genomic analysis, further contributing to its revenue streams. Illumina also engages in strategic partnerships and collaborations with pharmaceutical and biotechnology firms to develop and commercialize new genomic technologies, enhancing its market reach and innovation capabilities. These partnerships often involve co-development agreements, licensing, or research collaborations, providing additional financial growth opportunities.
Illumina Financial Statement Overview
Summary
Illumina faces substantial financial challenges. Despite strong gross margins and manageable leverage, recurring losses and declining equity are significant concerns. Improving cash flow is a positive step, yet the company needs to focus on restoring profitability and growth to enhance its financial health.Income Statement
The income statement reveals significant challenges. The TTM (Trailing-Twelve-Months) shows a negative net income and EBITDA, indicating profitability issues. Although the gross profit margin is strong at 65.43%, negative EBIT and EBITDA margins highlight operational inefficiencies. Revenue has been relatively stable, but the lack of growth and profitability is concerning.45
Neutral
Balance Sheet
The balance sheet presents a mixed picture. While the debt-to-equity ratio of 0.94 is manageable, the declining stockholders' equity over recent years is troubling. The equity ratio stands at 43.04%, showing moderate financial stability, but the consistent reduction in assets and equity poses a risk.55
Neutral
Cash Flow
Cash flow analysis indicates some positive signs. The operating cash flow to net income ratio is strong at -0.69, suggesting solid cash generation despite net losses. Free cash flow has improved significantly from the previous year, though the company must continue to enhance cash flow management to offset net income losses.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.37B | 4.50B | 4.58B | 4.53B | 3.24B | Gross Profit |
| 2.86B | 2.74B | 2.97B | 3.15B | 2.20B | EBIT |
| -833.00M | -1.07B | -4.18B | -123.00M | 580.00M | EBITDA |
| -725.00M | -608.00M | -3.92B | 747.00M | 767.00M | Net Income Common Stockholders |
| -1.22B | -1.16B | -4.40B | 762.00M | 656.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.22B | 1.05B | 2.04B | 1.34B | 3.47B | Total Assets |
| 6.30B | 10.11B | 12.25B | 15.22B | 7.58B | Total Debt |
| 2.54B | 2.26B | 3.48B | 2.47B | 1.85B | Net Debt |
| 1.42B | 1.21B | 1.47B | 1.24B | 45.00M | Total Liabilities |
| 3.93B | 4.37B | 5.65B | 4.48B | 2.89B | Stockholders Equity |
| 2.37B | 5.75B | 6.60B | 10.74B | 4.69B |
| Cash Flow | Free Cash Flow | |||
| 709.00M | 282.00M | -74.00M | 337.00M | 891.00M | Operating Cash Flow |
| 837.00M | 478.00M | 392.00M | 545.00M | 1.08B | Investing Cash Flow |
| -178.00M | -231.00M | -591.00M | -1.07B | -554.00M | Financing Cash Flow |
| -570.00M | -1.21B | 1.00B | -51.00M | -766.00M |
Illumina Technical Analysis
Negative
85.69
Price Trends
120.97
Negative
132.59
Negative
125.67
Negative
Market Momentum
-10.83
Positive
21.93
Positive
16.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ILMN, the sentiment is Negative. The current price of 85.69 is below the 20-day moving average (MA) of 99.08, below the 50-day MA of 120.97, and below the 200-day MA of 125.67, indicating a bearish trend. The MACD of -10.83 indicates Positive momentum. The RSI at 21.93 is Positive, neither overbought nor oversold. The STOCH value of 16.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ILMN.
Illumina Risk Analysis
Illumina disclosed 29 risk factors in its most recent earnings report. Illumina reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Illumina Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.23B | 101.80 | 2.63% | ― | 0.62% | -72.32% | |
53 Neutral | $5.12B | ― | 312.48% | ― | 31.04% | 16.91% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $13.45B | ― | -51.54% | ― | -2.93% | -4.69% | |
49 Neutral | $3.73B | ― | -18.96% | ― | -89.95% | -123.71% | |
45 Neutral | $369.72M | ― | -87.01% | ― | 2.14% | -13.90% | |
44 Neutral | $2.37B | ― | -43.28% | ― | 25.85% | 6.06% |
* Healthcare Sector Average
Performance Comparison
ILMN
Illumina
85.69
-45.63
-34.75%
PACB
Pacific Biosciences
1.34
-2.84
-67.94%
QGEN
Qiagen
38.55
-5.43
-12.35%
CRSP
Crispr Therapeutics AG
43.84
-36.99
-45.76%
GH
Guardant Health
42.66
24.20
131.09%
TWST
Twist Bioscience
42.05
3.97
10.43%
Illumina Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -30.22% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in revenue growth and strategic partnerships but also highlighted challenges, particularly in the China market and a decline in certain regional revenues.Highlights
Revenue Exceeds Expectations
Illumina delivered revenue of $1.1 billion in Q4 2024, exceeding expectations and reflecting approximately 1% growth from the prior year.
NovaSeq X Transition Success
The transition to NovaSeq X contributed significantly to revenue, with more than 65% of high-throughput gigabases shipped on the NovaSeq X series by the end of Q4 2024.
Operational Excellence and Cost Savings
Achieved over $100 million in cost savings across 2024 through greater manufacturing and logistics efficiencies.
Partnerships with Industry Leaders
Announced collaborations with NVIDIA and Truvera to enhance data analysis and expand genomic projects, respectively.
Strong Cash Flow
Cash flow provided by operations was $364 million in Q4 2024, contributing to a strong cash generation profile.
Lowlights
Challenges in China
Uncertainty due to the Chinese Ministry of Commerce's announcement, potentially affecting Illumina's operations in a market that represents approximately 7% of global revenue.
Sequencing Instruments Revenue Decline
Sequencing instruments revenue of $155 million declined 3% year-over-year in Q4 2024, primarily due to a decline in mid-throughput shipments.
EMEA Revenue Decline
EMEA revenue was down 10% year-over-year, indicating challenges in that region.
Company Guidance
During Illumina's fourth-quarter 2024 earnings call, the company provided guidance for 2025, anticipating low single-digit revenue growth on a constant currency basis and a non-GAAP operating margin of approximately 23%, improving by 170 basis points from 2024. Illumina expects diluted EPS to range between $4.50 and $4.65. The company highlighted significant progress in transitioning to the NovaSeq X platform, with 91 instruments placed during the quarter, bringing the installed base to 630, and consumables revenue growing by 2% year-over-year. Illumina aims to achieve 75% of high-throughput gigabases shipped on the NovaSeq X series by mid-2025, expecting this transition to drive further growth. Additionally, the company's strategic focus includes deepening customer collaboration, continuous innovation, and operational excellence, with $100 million in cost savings achieved in 2024 through manufacturing and logistics efficiencies. Despite geopolitical uncertainties in China, accounting for approximately 7% of global revenue, Illumina remains confident in its long-term strategy to achieve high single-digit revenue growth by 2027.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.