Illumina ILMN
Illumina is a global leader in DNA sequencing and genomic analysis technologies, selling instruments, reagents, and services to research, clinical, and pharmaceutical laboratories. Illumina combines exceptional quality (ROE 32.34%, gross margin 67.93%) with a very demanding valuation (P/E 50.28, EV/EBITDA 36.48) that limits attractiveness; strong momentum (+135% in 12 months) contrasts with negative earnings growth (-9.40%).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Illumina is a global leader in DNA sequencing and genomic analysis technologies, selling instruments, reagents, and services to research, clinical, and pharmaceutical laboratories. Illumina combines exceptional quality (ROE 32.34%, gross margin 67.93%) with a very demanding valuation (P/E 50.28, EV/EBITDA 36.48) that limits attractiveness; strong momentum (+135% in 12 months) contrasts with negative earnings growth (-9.40%).
Score by category
| Category | Score |
|---|---|
| Financial health | 7.5 |
| Quality / Moat | 8.5 |
| Valuation | 1.5 |
| Growth | 4.7 |
| Dividend | 1.5 |
| Momentum | 9.8 |
| Risk & Context | 3.6 |
OVERALL SCORE: 5.3/10
Context and risks
The rise in 10-year Treasury yields (5.17%) affects Illumina due to its high P/E (50.28) and long-duration growth profile, reducing the present value of future cash flows. However, its net debt/EBITDA of 1.18 limits the impact on financial health.
News considered in the analysis
- Illumina Stock Popped 7% to a 52-Week High. Here’s Where the Stock Goes From Here — El movimiento a máximos de 52 semanas ya está reflejado en el precio y en el momentum (nota 9.8).
- Illumina (ILMN) Tests Valuation As Russell Index Removal Forces A Fresh Look — La exclusión del índice Russell puede generar presión vendedora pasiva, pero el impacto en fundamentales es limitado y ya está parcialmente descontado.
- Illumina Stock Surges 94.9% YTD: What's Behind the Rally? — Artículo explicativo del rally ya ocurrido; no aporta información nueva sobre valoración o beneficios futuros.
- Analysts Think 6 S&P 500 Stocks Are Grossly Overvalued — Opinión de analistas sobre sobrevaloración; refuerza la lectura de valoración exigente (PER 50.28) pero es subjetiva y no un hecho material.
- What Needs To Be True To Buy Twist Bioscience Stock Now? — Artículo sobre un competidor (Twist Bioscience); sin impacto directo en Illumina.
Verdict: Hold; business quality is solid, but current valuation offers no margin of safety and earnings growth must recover to justify the multiple.
Main risk: The extreme valuation (P/E 50.28, EV/EBITDA 36.48) leaves little room for any disappointment in earnings growth, which is already negative (-9.40%).
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