Quality Investor

Illumina, Inc.

Rank #114Capital ReturnWatchlistCompare with other stocks

ILMN · Nasdaq · Healthcare

Illumina, Inc. (ILMN) — Rank #114 by gross profitability (GP/assets 0.43) · ROE 30.0% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001110803 · all metrics point-in-time as of the filing date.

About

Illumina, Inc. provides sequencing- and array-based solutions for genetic and genomic analysis in the Americas, Europe, Greater China, the Asia Pacific, the Middle East, and Africa.

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The company offers sequencing- and array-based instruments and consumables, which include reagents, flow cells, and library preparation; whole-genome sequencing kits, which sequence entire genomes of various size and complexity; and targeted resequencing kits, which sequence exomes, specific genes, and RNA or other genomic regions of interest. It also provides whole-genome sequencing, genotyping, noninvasive prenatal testing, and product support services. The company serves genomic research centers, academic institutions, government laboratories, and hospitals, as well as pharmaceutical, biotechnology, commercial molecular diagnostic laboratories, and consumer genomics companies. The company markets and distributes its products directly to customers, as well as through life-science distributors. The company has a collaboration with Labcorp Holdings Inc. for the development of oncology treatments through applications of sequencing solutions across the healthcare ecosystem; and strategic collaboration with Integrated DNA Technologies to enable a DRAGEN, secondary analysis pipeline for IDT xGena, FFPE and cfDNA next generation sequencing (NGS) library preparation with custom panels, delivering an integrated, end-to-end solution for somatic oncology research. It also has a data partnership with Center for Data-Driven Discovery in Biomedicine to advance research in pediatric cancer and rare disease. Illumina, Inc.

was incorporated in 1998 and is headquartered in San Diego, California.

Industry
Diagnostics & Research
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
January 3

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

8,600

Industry

Diagnostics & Research

Exchange

Nasdaq

10/11

Flags passed

ILMN fails 1 critical flag

Passes 10 of 11 quality flags

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · RPO outpacing revenue · Sequential beat (rev + EPS)

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.43
Return on equity
30.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.34
Current ratio
1.80×
Net cash
$1.17B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
6.3%

Growth

1/2 pass
Revenue growth
-0.7%
Piotroski F-Score
N/A
Share dilution
-1.9%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

Warning: Revenue declining YoY · GP/assets 72nd percentile of 41 SIC 38 peers

Gross profitability (GP / assets)

0.43

Primary signal (Novy-Marx).

72nd pctl of 41 SIC 38 peers

Return on equity

30.0%

Gross margin

66.1%

75th pctl of 41 SIC 38 peers

Revenue growth (YoY)

-0.7%

RPO growth (YoY)

12.3%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-1.8%

Revenue CAGR (5Y)

6.0%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

106.3%

Cash Flow Health

Is the cash real?

No warning flags · FCF 10% above net income

Free cash flow

$931.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

9.5%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

6.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $1.17B

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.34

21st pctl of 40 SIC 38 peers (best = lowest)

Current ratio

1.80×

13th pctl of 40 SIC 38 peers

Quick ratio

1.22×

Net cash

$1.17B

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.7 / 5

Good
Share count trend(net buybacks)
-1.9%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
6.2%5/5 Strong

Lifecycle Phase History

20212025
Decline
Hypergrowth
Startup
Capital Return

Price History

ILMN-45.6% · -11.4% CAGRSPY+82.9% · +12.8% CAGR