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Illumina Piotroski F-Score

: 3 (As of Today)
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Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Illumina has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Illumina's Piotroski F-Score or its related term are showing as below:

ILMN' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 3

During the past 13 years, the highest Piotroski F-Score of Illumina was 9. The lowest was 2. And the median was 6.


Illumina Piotroski F-Score Historical Data

The historical data trend for Illumina's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Illumina Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 6.00 5.00 5.00

Illumina Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 5.00 5.00 3.00

Competitive Comparison

For the Diagnostics & Research subindustry, Illumina's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Illumina Piotroski F-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Illumina's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Illumina's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 317 + 112 + 86 + -535 = $-20 Mil.
Cash Flow from Operations was -272 + 282 + 172 + 125 = $307 Mil.
Revenue was 1108 + 1199 + 1223 + 1162 = $4,692 Mil.
Gross Profit was 770 + 817 + 815 + 767 = $3,169 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(8675 + 15063 + 15217 + 15274 + 15448) / 5 = $13935.4 Mil.
Total Assets at the begining of this year (Jun21) was $8,675 Mil.
Long-Term Debt & Capital Lease Obligation was $1,270 Mil.
Total Current Assets was $2,891 Mil.
Total Current Liabilities was $2,881 Mil.
Net Income was 179 + 257 + 147 + 185 = $768 Mil.

Revenue was 794 + 953 + 1093 + 1126 = $3,966 Mil.
Gross Profit was 526 + 630 + 764 + 802 = $2,722 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(7248 + 7404 + 7585 + 8755 + 8675) / 5 = $7933.4 Mil.
Total Assets at the begining of last year (Jun20) was $7,248 Mil.
Long-Term Debt & Capital Lease Obligation was $2,383 Mil.
Total Current Assets was $5,310 Mil.
Total Current Liabilities was $874 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Illumina's current Net Income (TTM) was -20. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Illumina's current Cash Flow from Operations (TTM) was 307. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=-20/8675
=-0.00230548

ROA (Last Year)=Net Income/Total Assets (Jun20)
=768/7248
=0.10596026

Illumina's return on assets of this year was -0.00230548. Illumina's return on assets of last year was 0.10596026. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Illumina's current Net Income (TTM) was -20. Illumina's current Cash Flow from Operations (TTM) was 307. ==> 307 > -20 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=1270/13935.4
=0.09113481

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=2383/7933.4
=0.30037563

Illumina's gearing of this year was 0.09113481. Illumina's gearing of last year was 0.30037563. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=2891/2881
=1.00347102

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=5310/874
=6.07551487

Illumina's current ratio of this year was 1.00347102. Illumina's current ratio of last year was 6.07551487. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Illumina's number of shares in issue this year was 157. Illumina's number of shares in issue last year was 147. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3169/4692
=0.67540494

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2722/3966
=0.68633384

Illumina's gross margin of this year was 0.67540494. Illumina's gross margin of last year was 0.68633384. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=4692/8675
=0.54086455

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=3966/7248
=0.54718543

Illumina's asset turnover of this year was 0.54086455. Illumina's asset turnover of last year was 0.54718543. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+0+0+0
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Illumina has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

Illumina  (NAS:ILMN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Illumina Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Illumina's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Illumina Business Description

Illumina logo
Address
5200 Illumina Way, San Diego, CA, USA, 92122
Illumina provides tools and services to analyze genetic material with life science and clinical lab applications. The company generates revenue from sequencing tools and dedicated consumables (76% of 2020 sales). Illumina's high-throughput technology enables whole genome sequencing in humans and other large organisms. Its lower throughput tools enable applications that require smaller data outputs, such as viral and cancer tumor screening. Illumina also sells microarrays (9% of sales) that enable lower-cost, focused genetic screening with primarily consumer and agricultural applications. Services account for 16% of sales and include basic maintenance services, clinical lab applications (such as noninvasive prenatal, oncology, and rare-disease screening), and whole genome sequencing.
Executives
Frank John Edward officer: Chief Public Affairs Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Rollins Carissa officer: SVP, Chief Information Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Pegels Kevin Carl officer: Chief of Global Operations 5200 ILLUMINA WAY SAN DIEGO CA 92122
Torres Jose officer: VP, Chief Accounting Officer 1300 W. 120TH AVENUE WESTMINSTER CO 80234
Reeves Kathryne Gambrell officer: SVP, Chief Marketing Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Aravanis Alexander officer: SVP, Chief Technology Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Gottlieb Scott director MOLECULAR INSIGHT PHARMACEUTICALS 160 SECOND STREET CAMBRIDGE MA 02142
Febbo Phillip G. officer: SVP Chief Medical Officer C/O GENOMIC HEALTH, INC. 301 PENOBSCOT DRIVE REDWOOD CITY CA 94063
Tousi Susan H officer: SVP Product Development 5200 ILLUMINA WAY SAN DIEGO CA 92122
Goswami Joydeep officer: SVP Corp Business Development SUMITOMO FUDOSAN MITA TWIN BLDG EAST WING 4-2-8 SHIBAURA MINATO-KU TOKYO M0 1080023
Siegel Susan E director 3000 SAND HILL ROAD BLDG 3 STE 290 MENLO PARK CA 94025
Ragusa Robert P officer: SVP, Global Quality & Ops
Hoyt Aimee L officer: SVP, Chief People Officer 5200 ILLUMINA WAY SAN DIEGO CA 92122
Guthart Gary S director C/O INTUITIVE SURGICAL INC 1266 KIFER RD SUNNYVALE CA 94086
Mcginnis Karen K officer: VP, Chief Accounting Officer INSIGHT ENTERPRISES INC 1305 WEST AUTO DRIVE TEMPE AZ 85284

Illumina Headlines

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