One-glance verdict
Overvalued
$124.37 our estimate vs market $253.22
Wall Street consensus: $248.90 (100.1% higher than our fair-value estimate)
104% above our estimate, beyond the bull case
Fundamentals snapshot
Illumina, Inc.
ILMN · NMS · Healthcare · Diagnostics & Research
Current price
$253.22
52-week range
$106.12 - $309.35
Market cap
$38.24B
Balance sheet
Watch
8.09x Adequate
Net debt $1.36B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.5% last year.
- Reward Returns 32.3% on equity, ahead of 80% of its peers.
- Risk Stock trades 96.3% above its 5-year average P/E.
- Risk Insider ownership is only 0.2% (peer median: 0.4%).
What this company does
Illumina, Inc.
Illumina sells machines and the supplies to analyze DNA, helping scientists and doctors understand genetics for things like research and disease testing. Their money mainly comes from selling these machines and the recurring revenue (money that comes in regularly, like a subscription) from the necessary supplies, which is important because it provides a steady income stream. This business model is crucial because it allows them to invest in new technologies and maintain their position as a leader in genetic analysis.
How the company got here
Illumina was founded in 1998 with a mission to revolutionize genetic analysis. The company pioneered a key technology called "bead array" technology, which allowed for the simultaneous analysis of many different genes. This innovation quickly made Illumina a leader in the field of genomics, enabling researchers to understand the human genome on an unprecedented scale. Over the years, Illumina has continued to advance its sequencing technologies, making them faster, more accurate, and more affordable, which has been crucial for the growth of genetic research and diagnostics.
What it actually does
Illumina provides the tools and technology that allow scientists and doctors to read and understand DNA. Think of it like a super-advanced printer and ink system for genetic code. Their main products are machines (instruments) that can "read" DNA, and the special "inks" (consumables like reagents and flow cells) needed to make those machines work. These tools are used to study everything from the entire genetic makeup of an organism to specific parts of DNA that might be linked to diseases.
Sequencing and Array-Based Solutions
This is Illumina's core business, making up the vast majority of its revenue. They sell sophisticated machines that can "sequence" DNA, essentially reading the order of the building blocks that make up genetic code. They also sell the "consumables" – the special chemicals and materials needed to run these machines. These products are used by researchers in universities, hospitals, and drug companies to understand diseases, develop new medicines, and improve patient care through genetic testing. This segment is the engine that drives Illumina's business.
Services
Beyond selling the machines and the "inks" to run them, Illumina also offers services related to genetic analysis. This includes performing sequencing tests for customers who may not have their own equipment or expertise, such as whole-genome sequencing or tests for non-invasive prenatal screening. They also provide support and maintenance for their instruments. While a smaller part of the overall business compared to their instrument and consumable sales, these services provide ongoing revenue and help customers utilize Illumina's technology effectively.
What management is betting on now
Illumina's management is focused on making genetic sequencing more accessible and integrated into everyday healthcare. They are investing in developing new, even more powerful sequencing technologies that are faster and cheaper, aiming to expand the use of genomics in areas like cancer treatment and early disease detection. A key strategy involves partnerships with other companies, like Labcorp, to apply their sequencing solutions across the healthcare system. They are also working on improving the analysis of the vast amounts of genetic data generated, making it easier for researchers and clinicians to derive meaningful insights.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$284.00M
FY2024 Q4
$335.00M
FY2025 Q1
$208.00M
FY2025 Q2
$204.00M
FY2025 Q3
$253.00M
FY2025 Q4
$266.00M
FY2026 Q1
$251.00M
FY2026 Q2
$161.00M
Revenue
$1.16B
Net income
$207.00M
Diluted EPS
1.35
Operating cash flow
$201.00M
Free cash flow
$161.00M
Fetching…
Sources
Revenue
$1.09B
Net income
$134.00M
Diluted EPS
0.87
Operating cash flow
$289.00M
Free cash flow
$251.00M
Fetching…
Sources
Revenue
$1.16B
Net income
$334.00M
Diluted EPS
2.16
Operating cash flow
$321.00M
Free cash flow
$266.00M
Fetching…
Sources
Revenue
$1.08B
Net income
$150.00M
Diluted EPS
0.98
Operating cash flow
$284.00M
Free cash flow
$253.00M
Fetching…
Sources
Revenue
$1.06B
Net income
$235.00M
Diluted EPS
1.49
Operating cash flow
$234.00M
Free cash flow
$204.00M
Fetching…
Sources
Revenue
$1.04B
Net income
$131.00M
Diluted EPS
0.82
Operating cash flow
$240.00M
Free cash flow
$208.00M
Fetching…
Sources
Revenue
$1.10B
Net income
$186.00M
Diluted EPS
1.16
Operating cash flow
$364.00M
Free cash flow
$335.00M
Fetching…
Sources
Revenue
$1.08B
Net income
$705.00M
Diluted EPS
4.42
Operating cash flow
$316.00M
Free cash flow
$284.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $124.37 vs current price $253.22
Wall Street consensus is the average analyst price target: $248.90 (100.1% higher than our fair-value estimate).
Our most-likely fair value is $124.37 a share — about 50.9% below today's price of $253.22, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.4B. Interest coverage 8.1x.
Net debt
$1.36B
Interest coverage
8.09x
Illumina, Inc.'s profit covers its interest bill about 8.1 times over.
Watch
Worse cushion
Baseline
Better cushion
ILMN
BASELINE
Illumina, Inc.
Total debt $2.53B Interest coverage 8.09x This is the baseline the peer rows are being compared against.
Total debt $41.37B Interest coverage 5.72x -29% vs ILMN Carries about 1.4x less debt cushion than ILMN.
Total debt $4.15B Interest coverage 13.21x +63% vs ILMN Carries about 1.6x more debt cushion than ILMN.
Total debt $1.65B Interest coverage 15.65x +93% vs ILMN Carries about 1.9x more debt cushion than ILMN.
Total debt $27.78B Interest coverage 17.70x +119% vs ILMN Carries about 2.2x more debt cushion than ILMN.
Total debt $2.14B Interest coverage 16.32x +102% vs ILMN Carries about 2.0x more debt cushion than ILMN.
What you should know
The case for and against ILMN
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.5% last year.
-
Returns 32.3% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 96.3% above its 5-year average P/E.
-
Insider ownership is only 0.2% (peer median: 0.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
47.24x
Forward P/E
41.32x
P/B
14.23x
P/S
8.51x
EV/EBITDA
39.10x
PEG ratio
3.58x
Profitability
How much profit each dollar creates
Gross margin
67.9%
Operating margin
21.1%
Net margin
18.3%
ROE
32.3%
ROA
8.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.89x
Current ratio
1.80x
Quick ratio
1.25x
Total debt
$2.53B
Total cash
$1.17B
Growth
How the business has been compounding
Revenue TTM
$4.49B
Revenue 5Y CAGR
-1.0%
EPS TTM
5.36
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.09B
Free CF TTM
$931.00M
FCF margin
20.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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