Illumina is a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical and applied markets. The company's products are used for applications in the life sciences, oncology, reproductive health, agriculture and other emerging segments. The company was founded in 1998 and is based in San Diego, California.
ILMN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Illumina Inc. To summarize, we found that Illumina Inc ranked in the 29th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ILMN, they are:
Interest coverage, a measure of earnings relative to interest payments, is 21.05; that's higher than 86.13% of US stocks in the Healthcare sector that have positive free cash flow.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than just 12.29% of the free cash flow producing stocks we're observing.
ILMN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 46.05% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ILMN, try LMAT, GILD, HAPP, ZTS, and CPIX.
Deals and Financings Illumina (ILMN) will acquire GRAIL (GRAL), an Illumina spin-out that is developing an early screening test for multiple forms of cancer, for $8 billion in cash and stock (see story). In 2017, GRAIL bought Cirina, a Hong Kong-San Francisco liquid biopsy company cofounded by Dr. Dennis Lo,...
ChinaBio Today on Seeking Alpha | September 28, 2020
SAN DIEGO--(BUSINESS WIRE)---- $ILMN #ILMN--Illumina, Inc. (NASDAQ:ILMN) today announced that it will issue results for the third quarter 2020 following the close of market on Thursday, October 29, 2020. On the same day, at 2:00 pm Pacific Time (5:00 pm Eastern Time) Francis deSouza, President and Chief Executive Officer, and Sam Samad, Chief Financial Officer, will host a conference call with analysts, investors, and other interested parties to discuss financial and operating results. Conference Call Details
Illumina's (ILMN) $8B takeout of liquid biopsy developer GRAIL, which it formed in 2016 with funding assistance from the likes of Bill Gates and Jeff Bezos, may be a watershed event for its use in cancer detection and management.It is developing a multi-cancer early detection test called Galleri that detects...
At the summit Chief Executive Kevin Conroy discussed new early data for the company's multicancer-screening technology, according to a Bloomberg report. "We will bring the best CRC blood test to physicians and patients, though we don't believe the blood test will replace colonoscopy or Cologuard," Conroy said, according to the report. Cowen analyst Doug Schenkel, speaking during the question-and-answer portion of the presentation, called the data "new and exciting."