ILMNIllumina, Inc.
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (1.5×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 30% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ILMN?
Illumina, Inc. earns 32% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 23 points above what the capital costs: growth creates value
- Operating margin
- 20%
Operating margin · Diagnostics & Research median 3.6% · 12 months to Q2 2026
- Cash conversion
- 1.53×
Cash conversion · 0.99× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 18% |
| FY2021 | −2.7% |
| FY2022 | −91% |
| FY2023 | −24% |
| FY2024 | −19% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q2 2026
- 66%
- Operating margin12 months to Q2 2026
- 20%
- Net margin12 months to Q2 2026
- 18%
- Free cash flow margin
- 21%
- R&D as % of revenue
- 21%
- Revenue, trailing twelve months
- $4.49B
- Free cash flow, trailing twelve months
- $931M
- Net income, trailing twelve months
- $825M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 32%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Diagnostics & Research
Ranks #7 of 21 by RyuScore