Illumina Inc (ILMN) Stock

Illumina Inc trades at a P/E ratio of 34.47, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 30.77 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.62 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.41, Illumina Inc is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 9.88 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Illumina Inc achieves a profit margin of 16.40%, meaning it retains $16.40 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 21.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 31.20% and ROA at 9.15%, the company generates strong returns on invested capital.

Illumina Inc's revenue grew by 0.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 77.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against DIAGNOSTICS & RESEARCH industry averages for proper context.

Illumina Inc has a market capitalization of $23.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 152.80M shares outstanding, the company's ownership is relatively concentrated. As a participant in the DIAGNOSTICS & RESEARCH industry, it competes with other firms in this sector.

Illumina Inc's book value per share is $15.56, while the current stock price is $148.00, resulting in a price-to-book (P/B) ratio of 9.51. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

19 analysts cover ILMN with 42% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $133.24 implies -10.0% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 7 Buy, 8 Hold, 1 Sell, 2 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.