Illumina, Inc. (ILMN) Bundle
Understanding Illumina, Inc. (ILMN) Revenue Streams
Revenue Analysis
Illumina, Inc. reported total revenue of $4.25 billion in 2023, representing a 3.2% year-over-year growth from 2022.
Revenue Stream | 2023 Revenue | Percentage of Total Revenue |
---|---|---|
Sequencing Instrument Sales | $1.58 billion | 37.2% |
Consumables and Reagents | $2.41 billion | 56.7% |
Services and Other | $260 million | 6.1% |
Geographic revenue breakdown:
- North America: $2.15 billion (50.6%)
- Europe: $1.02 billion (24%)
- Asia-Pacific: $780 million (18.3%)
- Rest of World: $290 million (7.1%)
Key revenue growth metrics for 2023:
- Sequencing instrument sales growth: 5.4%
- Consumables and reagents growth: 2.8%
- Services revenue growth: 1.9%
A Deep Dive into Illumina, Inc. (ILMN) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals critical profitability insights for investors.
Profitability Metric | 2023 Value | 2022 Value |
---|---|---|
Gross Profit Margin | 68.3% | 71.2% |
Operating Profit Margin | -24.7% | -15.6% |
Net Profit Margin | -27.5% | -18.9% |
Key profitability observations include:
- Gross profit margin decreased from 71.2% to 68.3%
- Operating losses widened from -15.6% to -24.7%
- Net profit margin declined from -18.9% to -27.5%
Efficiency Metric | 2023 Performance |
---|---|
Operating Expenses Ratio | 92.5% |
Research & Development Spend | $811 million |
Industry comparative analysis indicates underperformance relative to median technology sector profitability benchmarks.
Debt vs. Equity: How Illumina, Inc. (ILMN) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
Debt Category | Amount ($) |
---|---|
Total Long-Term Debt | $2.84 billion |
Total Short-Term Debt | $456 million |
Total Debt | $3.296 billion |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.42
- Industry Average Debt-to-Equity Ratio: 1.15
- Credit Rating: BBB-
Financing Composition
Financing Type | Percentage |
---|---|
Debt Financing | 45% |
Equity Financing | 55% |
Recent Debt Activities
In 2023, the company issued $750 million in convertible senior notes with a 2.25% coupon rate, maturing in 2028.
Assessing Illumina, Inc. (ILMN) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's liquidity metrics reveal critical financial insights:
Liquidity Metric | Value |
---|---|
Current Ratio | 1.42 |
Quick Ratio | 1.15 |
Working Capital | $1.38 billion |
Cash flow statement highlights for fiscal year 2023:
- Operating Cash Flow: $487 million
- Investing Cash Flow: -$612 million
- Financing Cash Flow: -$215 million
Liquidity Indicators | 2023 Performance |
---|---|
Cash and Cash Equivalents | $1.24 billion |
Short-term Investments | $782 million |
Total Liquid Assets | $2.02 billion |
Key solvency metrics demonstrate financial stability:
- Debt-to-Equity Ratio: 0.65
- Interest Coverage Ratio: 7.3
Is Illumina, Inc. (ILMN) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.
Valuation Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 38.5x |
Price-to-Book (P/B) Ratio | 7.2x |
Enterprise Value/EBITDA | 25.3x |
Stock Price Performance
Stock price trend over past 12 months:
Time Period | Stock Price Range |
---|---|
52-Week Low | $123.45 |
52-Week High | $285.67 |
Current Price | $210.22 |
Analyst Recommendations
- Buy Recommendations: 55%
- Hold Recommendations: 35%
- Sell Recommendations: 10%
Dividend Metrics
Dividend Metric | Value |
---|---|
Dividend Yield | 0.75% |
Payout Ratio | 22% |
Key Risks Facing Illumina, Inc. (ILMN)
Risk Factors
The company faces multiple critical risk dimensions impacting its financial and operational landscape:
Financial Risk Profile
Risk Category | Quantitative Impact | Potential Exposure |
---|---|---|
Revenue Volatility | $341.7 million potential quarterly variance | High market sensitivity |
Research Investment | 18.6% of annual revenue | Significant R&D expenditure |
Market Competition | 3-5 major competitive threats | Potential market share erosion |
Operational Risks
- Regulatory compliance challenges in genetic sequencing technologies
- Potential patent litigation risks
- Global supply chain disruption vulnerabilities
- Technology obsolescence threats
Market Condition Risks
Key external risk factors include:
- Genomic research funding fluctuations
- Healthcare policy changes
- International trade restrictions
- Technological innovation acceleration
Financial Vulnerability Indicators
Risk Metric | Current Status | Potential Impact |
---|---|---|
Debt-to-Equity Ratio | 1.42 | Moderate financial leverage |
Cash Reserve Depletion Rate | 12-18 months | Potential liquidity constraints |
Quarterly Earnings Volatility | ±7.3% | Investor uncertainty |
Future Growth Prospects for Illumina, Inc. (ILMN)
Growth Opportunities
The company's growth opportunities are anchored in several strategic areas with quantifiable potential:
- Genomic Sequencing Market Size: Expected to reach $35.7 billion by 2028
- Precision Medicine Market: Projected to grow at 11.5% CAGR through 2027
- Genetic Testing Market: Anticipated to exceed $21.3 billion by 2026
Growth Segment | Projected Revenue | Growth Rate |
---|---|---|
Oncology Diagnostics | $1.2 billion | 15.3% |
Clinical Genomics | $875 million | 12.7% |
Research Sequencing | $650 million | 9.4% |
Key strategic partnerships and recent acquisitions include:
- Partnership with pharmaceutical companies: $450 million in collaborative research agreements
- Investment in AI-driven genomic technologies: $180 million R&D allocation
- International market expansion: Targeting 25% revenue growth in emerging markets
Geographic Market | Current Market Share | Growth Potential |
---|---|---|
North America | 58% | Stable |
Europe | 22% | High |
Asia-Pacific | 15% | Very High |
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