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ILMN Illumina, Inc. - Fundamental Analysis

NEUTRAL
ILMN Stock | Fundamental Analysis & Investment Insights
NASDAQ Healthcare Diagnostics & Research
Current Price
$134.35
Analyst Target
$126.94
-5.5% Downside
52W High
$153.06
52W Low
$68.7

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Confidence Score
68%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9 and an extremely high Altman Z-Score of 32918616524.8, indicating stable financial health with no distress risk despite operational weaknesses. Illumina trades at a premium valuation (P/E 30.12 vs sector avg 37.82) with near-flat revenue growth (0.4% YoY) but strong profitability (ROE 31.2%, Gross Margin 68.38%). Earnings volatility, declining YoY EPS growth (-77.8%), and bearish insider activity offset recent positive earnings surprises and robust historical ROE. The stock is above both Graham Number ($39.52) and intrinsic value ($31.22), suggesting overvaluation unless growth rebounds significantly.

Key Strengths

Exceptionally high Altman Z-Score indicates virtually no bankruptcy risk
Strong profitability metrics: ROE of 31.2%, operating margin of 21.4%
High gross margin of 68.38% reflects pricing power and scalable business model
Recent quarterly earnings beats: 3 out of last 4 quarters exceeded estimates
Analyst consensus recommendation is 'buy' with 18 analysts covering

Key Risks

Low Piotroski F-Score of 4/9 signals weak financial momentum and deteriorating fundamentals
Significant earnings decline: YoY earnings growth down 77.8% and Q/Q down 78.7%
Near-zero revenue growth (0.4% YoY) raises concerns about top-line stagnation
High valuation multiples: P/E of 30.12 and Price/Book of 8.63 exceed sector averages
Bearish insider sentiment with net selling activity in the last 6 months
AI Fair Value Estimate
Based on comprehensive analysis
$39.52
-70.6% below current price

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