Illumina Inc. Common Stock (ILMN)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $786 million in annual free cash flow (4.2% yield on market cap)
• High return on equity of 33.4% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($47) with negative 165% margin of safety—limited downside protection

AI Analysis

Illumina Inc. Common Stock is a mid-cap healthcare company valued at $18.8 billion. The business generates $4.3 billion in annual revenue with a 7.7% net margin and $786 million in free cash flow. From a quality standpoint, Illumina shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.4. On valuation, the stock is reasonably priced at 23.0x earnings, with trades far above its Graham Number ($47) with no margin of safety. Growth dynamics show revenue growing at 5.0% and profit growth of 78.6%. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $786 million in annual free cash flow (4.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Sluggish 5% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer