$135.05
arrow_drop_down5.01%Is ILMN a Buy or Sell based on AI Analysis?
Fundamental Analysis
Illumina Inc, a healthcare company, has a solid market value with a market capitalization of $21.88 billion. The company has a healthy financial standing with a current ratio of 1.66, indicating that it has more than enough current assets to cover its short-term liabilities. Additionally, Illumina's price-to-sales ratio of 4.96 suggests that investors are willing to pay nearly 5 times the company's annual revenue for its stock. Furthermore, the company's price-to-book ratio of 3.89 indicates that the stock is currently trading at a reasonable price in relation to its book value. Moreover, Illumina has a high score in the industry value category, suggesting that it outperforms its peers in terms of value metrics. On the other hand, Illumina Inc's financial performance is negatively impacted by its operating margin of -2.94%, indicating that the company is operating at a loss. The company's net income of -$1.16 billion further reflects its current financial challenges. Additionally, Illumina has a high price-to-free-cash-flow ratio of 79.17, suggesting that the company may not be efficiently generating cash flow from its operations. Furthermore, the company's return on equity of -18.81% indicates that shareholders are receiving negative returns on their investments. Despite these challenges, Illumina's healthy market ownership score of 40 suggests that institutional investors have significant confidence in the company's long-term growth prospects.
Positive Development
The company's stock has been outperforming its competitors, indicating strong investor confidence in the company's performance. The company has been expanding its NGS portfolio, which could potentially increase its revenue and market share. The company has been focusing on driving non-invasive prenatal testing (NIPT) adoption globally, which could lead to increased sales and revenue.
Negative Development
The company has been underperforming compared to its competitors, indicating potential weaknesses in its performance. The company's EPS and EV are negative, indicating financial difficulties. The company's long-term debt to total capital and total debt to equity ratios are relatively high, which could indicate financial strain.
Technical Analysis
Illumina Inc (ILMN) has a technical rating of "NEUTRAL" based on multiple indicators. The stock currently has a seven-day price change of 2%, with technical buy indicators including MACD and ATR, as well as technical hold indicators such as RSI, CCI, ADX, WILLR, and ROC. However, there is one technical sell indicator, STOCHRSI, suggesting a potential bearish signal. The stock's price has shown a decline of 1.99% from the previous close, with a delta price of -$2.8. Additionally, the stock's price chart shows a trailing annual dividend yield of -19.17%, indicating that the company does not pay dividends. The stock also has a beta of 1.19, suggesting it is slightly more volatile than the overall market. In terms of market benchmarks, Illumina Inc is scoring average or below average in most technical indicators compared to the market. The company's technical analysis suggests a neutral stance, with some positive indicators alongside bearish signals. Illumina Inc's technical analysis also reflects the company's performance in the healthcare sector, showcasing a technical rating that may not be as strong as some other competitors in the industry. As the stock market continues to evolve, investors may want to pay close attention to Illumina Inc's technical indicators to make informed decisions about their investment strategies.
Conclusion and recommendation
Based on the data provided, Illumina Inc (ILMN) is a stock in the healthcare sector with a market capitalization of $21.88 billion. The company has shown negative earnings growth in the past year, with a net income of -$1.16 billion. However, Illumina has a strong balance sheet with assets totaling $10.11 billion and liabilities of $4.37 billion, resulting in a healthy current ratio of 1.66. Additionally, the company has a solid gross profit margin of 60.92% and a free cash flow margin of 6.24%. In conclusion, while Illumina Inc has faced challenges in terms of earnings growth, its strong balance sheet and healthy financial ratios indicate a solid foundation for future growth. With a neutral analyst recommendation and a forecasted price change of 9.88%, it may be a prudent decision for investors to closely monitor the stock's performance in the coming months. Overall, Illumina's position in the healthcare sector and its market potential make it an interesting prospect for investors looking for long-term growth opportunities.