This is a step-by-step stock review to answer the question, is Illumina (ILMN) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Illumina (ILMN) stock a good buy?
1.Illumina Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1998: Illumina was established in San Diego, California, by David Walt, Larry Bock, John Stuelpnagel, Anthony Czarnik, and Mark Chee.
- Initial Focus: Developed innovative tools and systems for genetic analysis.
- First Product: Launched the BeadArray technology in 2002, revolutionizing genetic research with high-throughput genotyping.
- IPO: Went public in 2000, listed on NASDAQ under the ticker symbol ILMN.
- Acquisitions: Acquired Solexa in 2007, gaining next-generation sequencing technology and solidifying its leadership in the field.
- Key Innovations: Introduced the HiSeq and MiSeq sequencing systems, making genome sequencing faster and more affordable.
- Market Leadership: Became a dominant player in the genomics industry, providing tools for research, clinical, and applied markets.
- Partnerships: Collaborated with leading organizations and institutions to advance genomic research and personalized medicine.
- Technological Advances: Launched the NovaSeq series in 2017, offering unprecedented scalability and flexibility in sequencing.
- Global Impact: Contributed to significant scientific discoveries and advancements in areas like cancer research, genetic diseases, and agriculture.
- Sustainability: Committed to sustainable practices and reducing environmental impact.
- Community Engagement: Supports educational and outreach programs to promote genomics literacy and innovation.
- Future Vision: Aims to accelerate the understanding of human health through genomics, enabling breakthroughs in personalized medicine and global health initiatives.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: 0verpriced
- Score: 39/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Illumina (ILMN) makes money:
- Genetic Sequencing Systems: Sales of systems like NovaSeq, HiSeq, and MiSeq, which are central to genetic research.
- Consumables: Offers essential supplies such as reagents and cartridges required for the operation of sequencing systems.
- Services: Provides genetic sequencing services to clients who prefer outsourcing their analysis to Illumina’s labs.
- Instrumentation: Sells laboratory equipment used in genetic analysis and sequencing.
- Software Solutions: Supplies bioinformatics software and tools for genomic data analysis.
- Research Collaborations: Partners with academic institutions, biotech companies, and pharmaceutical firms on joint research projects.
- Clinical Applications: Generates revenue from the use of its technology in clinical diagnostics and personalized medicine, including collaborations with healthcare providers.
- Training and Support: Offers training and maintenance services to ensure optimal use of its products.
- Genomics Solutions: Develops tools for gene expression, variant, and epigenetics research.
- Global Market: Serves a worldwide customer base including research institutions, pharma, healthcare, and biotech firms.
Illumina uses these various streams to maximize their earnings and provide diverse services to moviegoers.
Here are a few of the other companies that Illumina (ILMN) has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Solexa
- Helixis
- Epicentre Biotechnologies
- Verinata Health
- Advanced Liquid Logic
- NextBio
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Illumina stacks up against other companies.
- Medpace Holdings, Inc.(MEDP) – 83
- IDEXX Laboratories, Inc.(IDXX) – 78
- RadNet, Inc.(RDNT) – 72
- ICON Public Limited Company.(ICLR) – 67
- Guardant Health, Inc.(GH) – 61
- Illumina, Inc.(ILMN) – 39
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Leadership in Sales: Jacob Thaysen led Illumina’s global commercial operations, significantly growing the company’s sales and market presence.
- Expansion of Product Line: He was instrumental in expanding Illumina’s product portfolio, enhancing their genomic sequencing technologies.
- Global Market Growth: Thaysen helped increase Illumina’s footprint in international markets, boosting sales and partnerships worldwide.
- Focus on Customer Experience: He emphasized improving customer service and support, enhancing customer satisfaction and loyalty.
- Driving Innovation: Under his leadership, Illumina advanced its technology and innovation in genomics, including developments in sequencing technology and bioinformatics.
- Strategic Partnerships: Thaysen played a key role in forming strategic alliances and collaborations, advancing Illumina’s position in the genomics industry.
- Revenue Growth: He contributed to significant revenue growth, helping Illumina achieve and surpass its financial targets.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Illumina (ILMN) is 51/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Rite Illumina (ILMN) stock a good buy?
Some of the top questions investors can have is Illumina (ILMN) stock a good buy or should I buy Illumina (ILMN) stock?
Illumina is a leading company in genomics, dominating the DNA sequencing market with continuous innovation that drives advancements in genetic research and personalized medicine. The company’s strong financial performance and robust revenue growth demonstrate a solid foundation, while its strategic acquisitions, like GRAIL, enhance both technology and market reach. With a focus on health tech and biotech, Illumina is well-positioned for future growth. However, potential investors should consider the risks. Illumina’s high stock valuation might pose a risk if growth slows, and increasing competition in the genomics space could impact its market share. Additionally, regulatory challenges in the biotech sector and economic downturns that affect research funding could also impact Illumina’s performance. Investing in Illumina offers high potential rewards but comes with inherent risks that should be carefully evaluated.
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To truly know if Illumina, Inc. is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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