I've been keeping an eye on Illumina, Inc. (NASDAQ:ILMN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ILMN has a lot to offer. Basically, it is a financially-healthy company with a great history and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Illumina here.
Excellent balance sheet with reasonable growth potential
ILMN delivered a bottom-line expansion of 50% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did ILMN outperformed its past performance, its growth also exceeded the Life Sciences industry expansion, which generated a 49% earnings growth. This is an optimistic signal for the future.
ILMN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that ILMN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ILMN's has produced operating cash levels of 0.62x total debt over the past year, which implies that ILMN's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Illumina, I've put together three important factors you should further examine:
- Valuation: What is ILMN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ILMN is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does ILMN return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ILMN as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ILMN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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