ELI LILLY & CO (LLY)
US5324571083 - Common Stock
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 196 industry peers in the Pharmaceuticals industry. While LLY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LLY is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
LLY had positive earnings in the past year.
LLY had a positive operating cash flow in the past year.
Each year in the past 5 years LLY has been profitable.
Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
LLY's Return On Assets of 9.60% is amongst the best of the industry. LLY outperforms 92.78% of its industry peers.
Looking at the Return On Equity, with a value of 47.91%, LLY belongs to the top of the industry, outperforming 95.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.48%, LLY belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LLY is above the industry average of 17.66%.
The 3 year average ROIC (20.29%) for LLY is below the current ROIC(21.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 47.91% | ||
| ROIC | 21.48% |
ROA(3y)10.75%
ROA(5y)13.34%
ROE(3y)56.48%
ROE(5y)119.66%
ROIC(3y)20.29%
ROIC(5y)19.04%
1.3 Margins
LLY has a better Profit Margin (17.08%) than 91.75% of its industry peers.
LLY's Profit Margin has been stable in the last couple of years.
LLY has a better Operating Margin (31.58%) than 95.36% of its industry peers.
LLY's Operating Margin has improved in the last couple of years.
LLY's Gross Margin of 80.16% is amongst the best of the industry. LLY outperforms 84.54% of its industry peers.
In the last couple of years the Gross Margin of LLY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.58% | ||
| PM (TTM) | 17.08% | ||
| GM | 80.16% |
OM growth 3Y2.73%
OM growth 5Y2.37%
PM growth 3Y-15.26%
PM growth 5Y0.42%
GM growth 3Y0.68%
GM growth 5Y0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LLY is creating value.
LLY has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LLY has less shares outstanding
LLY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.64 indicates that LLY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.64, LLY belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that LLY has dependencies on debt financing.
The Debt to Equity ratio of LLY (1.92) is worse than 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.64 |
ROIC/WACC2.39
WACC9%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LLY should not have too much problems paying its short term obligations.
The Current ratio of LLY (1.35) is worse than 77.32% of its industry peers.
LLY has a Quick Ratio of 1.03. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.03, LLY is not doing good in the industry: 78.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
LLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.90%.
LLY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
The Revenue has grown by 29.76% in the past year. This is a very strong growth!
Measured over the past years, LLY shows a quite strong growth in Revenue. The Revenue has been growing by 9.69% on average per year.
EPS 1Y (TTM)4.9%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS Q2Q%59.26%
Revenue 1Y (TTM)29.76%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Sales Q2Q%25.98%
3.2 Future
Based on estimates for the next years, LLY will show a very strong growth in Earnings Per Share. The EPS will grow by 40.99% on average per year.
LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.48% yearly.
EPS Next Y120.16%
EPS Next 2Y75.47%
EPS Next 3Y59.42%
EPS Next 5Y40.99%
Revenue Next Year27.94%
Revenue Next 2Y25.59%
Revenue Next 3Y23.22%
Revenue Next 5Y18.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LLY is valuated quite expensively with a Price/Earnings ratio of 112.68.
Compared to the rest of the industry, the Price/Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 77.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, LLY is valued quite expensively.
Based on the Price/Forward Earnings ratio of 42.16, the valuation of LLY can be described as expensive.
Based on the Price/Forward Earnings ratio, LLY is valued a bit cheaper than 74.23% of the companies in the same industry.
LLY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.68 | ||
| Fwd PE | 42.16 |
4.2 Price Multiples
LLY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LLY is cheaper than 75.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 61.82 |
4.3 Compensation for Growth
LLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LLY may justify a higher PE ratio.
LLY's earnings are expected to grow with 59.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)43.41
EPS Next 2Y75.47%
EPS Next 3Y59.42%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 4.09, LLY pays a better dividend. On top of this LLY pays more dividend than 89.69% of the companies listed in the same industry.
With a Dividend Yield of 0.64, LLY pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
On average, the dividend of LLY grows each year by 14.87%, which is quite nice.
LLY has paid a dividend for at least 10 years, which is a reliable track record.
LLY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.87%
Div Incr Years9
Div Non Decr Years19
5.3 Sustainability
LLY pays out 68.77% of its income as dividend. This is not a sustainable payout ratio.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.77%
EPS Next 2Y75.47%
EPS Next 3Y59.42%
ELI LILLY & CO
NYSE:LLY (5/31/2024, 7:04:00 PM)
After market: 819.01 -1.33 (-0.16%)820.34
+5.28 (+0.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap779.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.68 | ||
| Fwd PE | 42.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)43.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 47.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.58% | ||
| PM (TTM) | 17.08% | ||
| GM | 80.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.9%
EPS 3Y-7.29%
EPS 5Y
EPS Q2Q%
EPS Next Y120.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.76%
Revenue growth 3Y11.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y