ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LLY - US5324571083 - Common Stock
856.5 EUR
+4.5 (+0.53%)
Taking everything into account, LLY scores 6 out of 10 in our fundamental rating. LLY was compared to 55 industry peers in the Pharmaceuticals industry. While LLY has a great profitability rating, there are some minor concerns on its financial health. LLY is valued quite expensively, but it does show have an excellent growth rating. This makes LLY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year LLY was profitable.
- LLY had a positive operating cash flow in the past year.
- LLY had positive earnings in each of the past 5 years.
- In the past 5 years LLY always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 16.02%, LLY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- With an excellent Return On Equity value of 77.38%, LLY belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
- LLY has a Return On Invested Capital of 28.84%. This is amongst the best in the industry. LLY outperforms 94.55% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LLY is significantly above the industry average of 14.00%.
- The last Return On Invested Capital (28.84%) for LLY is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 77.38% | ||
| ROIC | 28.84% |
ROA(3y)11.42%
ROA(5y)11.8%
ROE(3y)60.64%
ROE(5y)70.77%
ROIC(3y)21.71%
ROIC(5y)19.96%
1.3 Margins
- LLY's Profit Margin of 30.99% is amongst the best of the industry. LLY outperforms 96.36% of its industry peers.
- In the last couple of years the Profit Margin of LLY has declined.
- The Operating Margin of LLY (44.41%) is better than 96.36% of its industry peers.
- LLY's Operating Margin has improved in the last couple of years.
- LLY has a Gross Margin of 83.03%. This is amongst the best in the industry. LLY outperforms 87.27% 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 | 44.41% | ||
| PM (TTM) | 30.99% | ||
| GM | 83.03% |
OM growth 3Y12.38%
OM growth 5Y7.84%
PM growth 3Y6.05%
PM growth 5Y-8.8%
GM growth 3Y3.11%
GM growth 5Y0.62%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LLY is creating value.
- LLY has about the same amout of shares outstanding than it did 1 year ago.
- LLY has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, LLY has a worse debt to assets ratio.
2.2 Solvency
- LLY has an Altman-Z score of 8.12. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
- LLY has a Altman-Z score of 8.12. This is amongst the best in the industry. LLY outperforms 94.55% of its industry peers.
- LLY has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as LLY would need 6.60 years to pay back of all of its debts.
- LLY's Debt to FCF ratio of 6.60 is in line compared to the rest of the industry. LLY outperforms 43.64% of its industry peers.
- LLY has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of LLY (1.72) is worse than 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.12 |
ROIC/WACC3.12
WACC9.25%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that LLY should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.55, LLY is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
- LLY has a Quick Ratio of 1.24. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of LLY (1.24) is better than 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 116.22% over the past year.
- LLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.57% yearly.
- The Revenue has grown by 45.41% 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 15.08% on average per year.
EPS 1Y (TTM)116.22%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%494.92%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
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 32.61% on average per year.
- Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 19.64% on average per year.
EPS Next Y84.93%
EPS Next 2Y59.63%
EPS Next 3Y46.9%
EPS Next 5Y32.61%
Revenue Next Year41.38%
Revenue Next 2Y31.01%
Revenue Next 3Y26.06%
Revenue Next 5Y19.64%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 46.65, the valuation of LLY can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of LLY indicates a slightly more expensive valuation: LLY is more expensive than 67.27% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. LLY is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 30.96 indicates a quite expensive valuation of LLY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LLY indicates a slightly more expensive valuation: LLY is more expensive than 69.09% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (25.83), we can say LLY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.65 | ||
| Fwd PE | 30.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LLY indicates a slightly more expensive valuation: LLY is more expensive than 74.55% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LLY indicates a slightly more expensive valuation: LLY is more expensive than 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 150.64 | ||
| EV/EBITDA | 35.24 |
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.
- LLY has an outstanding profitability rating, which may justify a higher PE ratio.
- LLY's earnings are expected to grow with 46.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)2.82
EPS Next 2Y59.63%
EPS Next 3Y46.9%
5. Dividend
5.1 Amount
- LLY has a yearly dividend return of 0.64%, which is pretty low.
- LLY's Dividend Yield is comparable with the industry average which is at 1.62.
- Compared to an average S&P500 Dividend Yield of 1.82, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
- On average, the dividend of LLY grows each year by 15.59%, which is quite nice.
Dividend Growth(5Y)15.59%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 28.28% of the earnings are spent on dividend by LLY. This is a low number and sustainable payout ratio.
- The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.28%
EPS Next 2Y59.63%
EPS Next 3Y46.9%
ELI LILLY & CO / LLY.DE FAQ
Can you provide the ChartMill fundamental rating for ELI LILLY & CO?
ChartMill assigns a fundamental rating of 6 / 10 to LLY.DE.
What is the valuation status of ELI LILLY & CO (LLY.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to ELI LILLY & CO (LLY.DE). This can be considered as Overvalued.
What is the profitability of LLY stock?
ELI LILLY & CO (LLY.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for LLY stock?
The Price/Earnings (PE) ratio for ELI LILLY & CO (LLY.DE) is 46.65 and the Price/Book (PB) ratio is 40.75.
What is the earnings growth outlook for ELI LILLY & CO?
The Earnings per Share (EPS) of ELI LILLY & CO (LLY.DE) is expected to grow by 84.93% in the next year.