ILLUMINA, INC. (ILMN) Stock Analysis
ILLUMINA, INC.
▾ What's in the 42/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
How to read ILMN
We are not publishing an intrinsic value for this one — the section below says exactly why. Everything on this page that comes straight from the filings and the tape is still here; treat the missing valuation as a known gap, not as a verdict on the business.
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Reported earnings & margins ↓
What the company actually reported — unaffected by the valuation being held.
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Balance sheet & book value ↓
Assets, liabilities and equity as filed.
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Who's selling & betting against it ↓
Insider and short-interest behaviour needs no valuation model.
The share count we read for ILMN looks wrong — common for multi-class / founder-controlled filers that report shares per share-class. That makes per-share figures (including intrinsic value) misleading, so we suppressed them. The company's total financials below are sound.
What to use instead: Lean on the totals — revenue, net income, cash flow — and the balance sheet. Multi-class share counts are being corrected; once fixed, the per-share valuation returns automatically.
This note is only about the single DCF fair-value number — ILMN's full financial statements, health scores, and written analysis are all below.
How does ILMN stack up against its closest peers?
We take the 6 same-industry companies most similar to ILMN (similar size) and check what investors are paying for each dollar of their revenue (or profits). If ILMN is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
5.0x / 6.4x / 12.3x |
| EV / EBITEV / EBITDA — Enterprise value divided by earnings before interest, tax, depreciation, and amortization. Why it matters: A classic "what would a private buyer pay" multiple — used in M&A. Strips out tax and capital-structure noise. Reference: 8–12x for mature businesses · 15–25x for growth · Below 5x often signals distress Full explanation → |
30.6x / 40.1x / 48.7x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 6 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (6)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| WAT | WATERS CORP /DE/ | Laboratory Analytical Inst | $37.7B | 12.3x | — | 48.7x | 2.1% |
| MTD | METTLER TOLEDO INTERNATIONAL INC/ | Laboratory Analytical Inst | $25.2B | 6.3x | 10.6x | — | 3.4% |
| A | AGILENT TECHNOLOGIES, INC. | Laboratory Analytical Inst | $42.3B | 6.5x | — | 30.6x | 2.4% |
| BRKRP | BRUKER CORP | Laboratory Analytical Inst | $66.4B | 19.9x | 43.3x | 1,000.7x | 1.0% |
| RVTY | REVVITY, INC. | Laboratory Analytical Inst | $11.7B | 5.0x | — | 40.1x | 4.0% |
| BIO | BIO-RAD LABORATORIES, INC. | Laboratory Analytical Inst | $8.5B | 3.8x | 7.3x | 206.1x | 3.7% |
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
The Z-score needs working capital, retained earnings, EBIT, sales and total assets from the latest balance sheet, and at least one of those isn't reported in machine-readable form here — common for foreign private issuers. We leave it blank rather than compute a distress verdict from an estimated input. It doesn't affect the reported figures in the financial tables below.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
▾ The checks — what passed, what didn't (and what we couldn't measure)
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✓ Positive net incomeNet income $850.0M in FY2025.
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✓ Positive operating cash flowOperating cash flow $1,079.0M (was $837.0M the prior year).
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✓ Cash flow backs up reported profitOperating cash flow $1,079.0M vs net income $850.0M.
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✓ Return on assets improvingReturn on assets 12.8% vs -19.4% a year ago.
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✓ Debt load (vs assets)The filing reports no interest-bearing debt in either year (total assets $6,644.0M).
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✓ Short-term liquidity (current ratio)Current ratio 2.08x vs 1.78x a year ago.
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✓ Share count (dilution)Share count declined 1.9% (159.0M → 156.0M year-over-year), so the no-dilution check passed. (One-year change; the multi-year buyback pace can differ.)
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✓ Pricing power (gross margin)Gross margin 66.1% vs 65.4% a year ago.
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✗ Sales per asset (asset turnover)Asset turnover 0.65x vs 0.69x a year ago.Why this matters: Asset turnover measures how much revenue each dollar of assets generates. Rising = more productive use of the asset base.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 10.0%, the figure our model used for ILMN. Open Advanced to also change beta, growth and the rate path.
Note: no headline intrinsic value is published for this stock (the valuation is held for a data-quality reason — see the notes above). The calculator below is a what-if tool: the values it produces are your assumptions played out, not our estimate.
A full intrinsic value isn't shown for ILMN because the valuation is currently held for a data-quality reason (see the guardrail notes above). The reverse-DCF reading still works — it needs only the price and cash flow — but we won't publish a forward value until the underlying data passes our checks.
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
A standard DCFDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → valuation is not meaningful for Illumina due to its revenue declining at -1.4%/yr over three years, indicating a lack of consistent growth. Investors are likely focused on potential future product innovations and market expansion rather than current cash flows. The market is betting on a turnaround in its core genomics business. The #1 quantifiable risk is continued revenue decline.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Quarterly revenue growth rates
- Gross margin trends
- New product launch success and adoption
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Free cash flow rose to $656.0M.
- Gross margin improved to 66% (+1 pts).
- Swung to a profit of $850.0M (from a loss the prior year).
Nothing was clearly worsening year-over-year.
Roughly flat: Revenue was flat -1% to $4.34B.
Management & Leadership
Illumina is currently led by CEO Jacob Thaysen, who assumed the role in late 2023. The company was co-founded by David Walt, who also served as CEO. Francis deSouza previously served as CEO for several years.
What They Make
Illumina develops, manufactures, and markets integrated systems for genetic variation and biological function analysis. Its products are primarily used by research centers, academic institutions, and pharmaceutical companies.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
The market is likely pricing Illumina based on expectations for future innovation in genomics and the potential for new applications of its technology, despite current revenue declining at -1.4%/yr. Investors are betting on a rebound in its core business and the long-term growth of the genomics market, overlooking the compressing gross margins (69.7% → 66.1%).
Business Model & Valuation
How They Make Money
Illumina funds itself through operating cash flow, which has been positive for 4/4 years, and has reduced its long-term debt from $673M to $0M.
Free Cash Flow DCF
Standard FCF DCF: positive free cash flow in a sector suited for cash-flow-based valuation. FCF negative in 2/4 years.
Show advanced inputs
| Revenue Growth | -1.4% |
| Historical Fcf Growth | 93.5% |
| Sector Default | 10.0% |
| Best Estimate | 3.0% |
| Method | blend(70% revenue_cagr, 30% sector) |
| Growth Basis | total |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue is declining at -1.4%/yr over the last three years, though net income was positive in the latest period.
Geography & Markets
Illumina is headquartered in the US and operates globally, with significant sales across North America, Europe, and Asia. Specific geographic revenue percentages are not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)10.6OversoldHeavily sold off recently — sometimes a bounce setup, sometimes a falling knife.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (5 notes — click to expand/collapse)
Guardrail Notes (5)
- Stock-based compensation equals 30% of pre-SBC free cash flow; FCF used here is net of SBC (a real shareholder-dilution cost), so it is lower than the headline GAAP cash-flow figure.
- Terminal growth (3%) capped to 2.4% (80% of near-term growth 3%).
- Illiquidity discount 15% applied (small/micro-cap — harder to exit, demand a margin).
- Extreme valuation (P/IV withheld — see the note above); output dominated by data/units issue (often a multi-class share-count mismatch). Suppressed.
- DATA UNAVAILABLE: per-share values suppressed due to missing/unreliable shares data.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From ILLUMINA, INC.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 4.3B | 850.0M | $5.45 |
| 2024 | 4.4B | -1.2B | $-7.69 |
| 2023 | 4.5B | -1.2B | $-7.34 |
| 2022 | 4.5B | 762.0M | $5.04 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 1.1B | 148.0M | 275.0M | 656.0M |
| 2024 | 837.0M | 128.0M | 370.0M | 339.0M |
| 2023 | 478.0M | 195.0M | 380.0M | -97.0M |
| 2022 | 545.0M | 208.0M | 754.0M | -417.0M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 1.1B − 148.0M − 275.0M (SBC & adj.) = 656.0M. This is the same owner-earnings FCF definition the valuation model uses.
Balance Sheet
| Total Assets | 6.6B |
| Total Liabilities | 3.9B (derived) |
| Equity | 2.7B |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.