ILMN - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 80/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±46.8% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves approx. 1.4x as much as the broader market.

Beta (Market Relation)

1.42x

Above average

Volatility (5Y p.a.)

46.8% p.a.

5-Year Horizon

Max Drawdown (5Y)

-83.0%

5-Year Horizon

Sharpe Ratio

-0.22

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+170.6%
3 Years	45.4%	-54.7%	0.51	+25.4%
5 Years	46.8%	-83.0%	-0.22	-7.9%
10 Years	42.8%	-86.2%	0.03	+3.9%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Exemplary balance sheet strength: Very solid ratio of equity to debt.

🔴 High valuation risk: Avg P/E of 51.9 (Elevated multiple compression risk)

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (46.8% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -86.2% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

7 ISS Score: 7 / 10

Audit Risk

6 ISS Score: 6 / 10

Board Risk

2 ISS Score: 2 / 10

Short Ratio

5.52