Aureus
AExcellent

Illumina, Inc.(ILMN)

A

Financial data as of Dec 31, 2025Declining · Healthcare

FCF Margin21.4%Free Cash Flow / Revenue
Cash Conversion126.9%Operating CF / Net Income
Free Cash Flow$931.0M
Revenue$4.3B
Net Cash-$1.1BNet debt position
Debt / FCF2.7xManageable debt load
Current Ratio2.08Adequate short-term liquidity
YoY FCF Growth-20.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (21.4%, 2.7x)
→
-0.5FCF trend declining (-20.6% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (21.4%)
  • Excellent cash conversion (127%)
  • Strong liquidity (current ratio: 2.08)
  • Highly consistent quarterly FCF

Concerns

  • Net debt position ($1.1B) — 2.7x FCF, manageable
  • Significant YoY FCF decline (-20.6%)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin21.4%
Net Margin19.6%
Operating CF Margin24.8%
CapEx Ratio3.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.1BNet debt position
Debt / FCF2.7xManageable debt load
Current Ratio2.08Strong liquidity
Debt / Equity0.94Low leverage

Quarterly FCF Trend

-20.6% YoYDeclining (-20.6%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameIllumina, Inc.
SectorHealthcare
Free Cash Flow$931.0M
Revenue$4.3B
Net Income$850.0M
Operating Cash Flow$1.1B
Capital Expenditure$148.0M
FCF Margin21.4%
Cash Conversion Rate126.9%
Net Margin19.6%
Total Debt$2.6B
Total Cash$1.4B
Net Cash-$1.1B
Current Ratio2.08
Debt / Equity0.94
Debt / FCF2.7x
YoY FCF Growth-20.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance