ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
Europe - FRA:LLY - US5324571083 - Common Stock
696 EUR
-1.1 (-0.16%)
LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, but there are some minor concerns on its financial health. LLY shows excellent growth, but is valued quite expensive already.
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
LLY has a Return On Assets of 13.67%. This is amongst the best in the industry. LLY outperforms 84.91% of its industry peers.
LLY has a better Return On Equity (75.52%) than 96.23% of its industry peers.
LLY has a better Return On Invested Capital (29.63%) than 94.34% 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 15.19%.
The last Return On Invested Capital (29.63%) for LLY is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 75.52% | ||
| ROIC | 29.63% |
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
With an excellent Profit Margin value of 25.91%, LLY belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
In the last couple of years the Profit Margin of LLY has declined.
LLY has a better Operating Margin (42.13%) than 94.34% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
With an excellent Gross Margin value of 82.64%, LLY belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
LLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.13% | ||
| PM (TTM) | 25.91% | ||
| GM | 82.64% |
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.
Compared to 1 year ago, LLY has about the same amount of shares outstanding.
Compared to 5 years ago, LLY has less shares outstanding
The debt/assets ratio for LLY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.19 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY has a better Altman-Z score (7.19) than 94.34% of its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that LLY has dependencies on debt financing.
LLY's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. LLY is outperformed by 79.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.19 |
ROIC/WACC3.46
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.28 indicates that LLY should not have too much problems paying its short term obligations.
LLY's Current ratio of 1.28 is in line compared to the rest of the industry. LLY outperforms 49.06% of its industry peers.
LLY has a Quick Ratio of 1.28. This is a bad value and indicates that LLY is not financially healthy enough and could expect problems in meeting its short term obligations.
LLY has a Quick ratio of 1.00. This is comparable to the rest of the industry: LLY outperforms 56.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.67%, which is quite impressive.
Measured over the past years, LLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.57% on average per year.
LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.83%.
LLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.08% yearly.
EPS 1Y (TTM)77.67%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%60.97%
Revenue 1Y (TTM)36.83%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%37.64%
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 30.19% on average per year.
The Revenue is expected to grow by 17.70% on average over the next years. This is quite good.
EPS Next Y76.53%
EPS Next 2Y52.79%
EPS Next 3Y41.48%
EPS Next 5Y30.19%
Revenue Next Year36.8%
Revenue Next 2Y27.26%
Revenue Next 3Y23.11%
Revenue Next 5Y17.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 50.04, the valuation of LLY can be described as expensive.
LLY's Price/Earnings ratio is a bit more expensive when compared to the industry. LLY is more expensive than 64.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.57. LLY is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 26.62, LLY can be considered very expensive at the moment.
69.81% of the companies in the same industry are cheaper than LLY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (23.09), we can say LLY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.04 | ||
| Fwd PE | 26.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit more expensive than the industry average as 71.70% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 32.96 |
4.3 Compensation for Growth
The 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 41.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)3.02
EPS Next 2Y52.79%
EPS Next 3Y41.48%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.73%, which is pretty low.
LLY's Dividend Yield is comparable with the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.32, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
On average, the dividend of LLY grows each year by 15.60%, which is quite nice.
Dividend Growth(5Y)15.6%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
LLY pays out 36.46% of its income as dividend. This is a sustainable payout ratio.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.46%
EPS Next 2Y52.79%
EPS Next 3Y41.48%
FRA:LLY (10/22/2025, 7:00:00 PM)
696
-1.1 (-0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.75%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap658.74B
Revenue(TTM)53.26B
Net Income(TTM)13.80B
Analysts80
Price Target768.2 (10.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend4.22
Dividend Growth(5Y)15.6%
DP36.46%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.94%
Min EPS beat(2)9.38%
Max EPS beat(2)14.51%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-20.34%
Max EPS beat(4)14.51%
EPS beat(8)7
Avg EPS beat(8)31.01%
EPS beat(12)10
Avg EPS beat(12)22.08%
EPS beat(16)12
Avg EPS beat(16)15.86%
Revenue beat(2)1
Avg Revenue beat(2)2.11%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)4.72%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)4.72%
Revenue beat(8)4
Avg Revenue beat(8)1.92%
Revenue beat(12)6
Avg Revenue beat(12)1.89%
Revenue beat(16)9
Avg Revenue beat(16)1.54%
PT rev (1m)-0.22%
PT rev (3m)-10.48%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)3.93%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.04 | ||
| Fwd PE | 26.62 | ||
| P/S | 14.36 | ||
| P/FCF | N/A | ||
| P/OCF | 69.9 | ||
| P/B | 41.84 | ||
| P/tB | 115.95 | ||
| EV/EBITDA | 32.96 |
EPS(TTM)13.91
EY2%
EPS(NY)26.15
Fwd EY3.76%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)9.96
OCFY1.43%
SpS48.48
BVpS16.63
TBVpS6
PEG (NY)0.65
PEG (5Y)3.02
Graham Number72.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 75.52% | ||
| ROCE | 36.25% | ||
| ROIC | 29.63% | ||
| ROICexc | 31.43% | ||
| ROICexgc | 39.29% | ||
| OM | 42.13% | ||
| PM (TTM) | 25.91% | ||
| GM | 82.64% | ||
| FCFM | N/A |
ROA(3y)11.42%
ROA(5y)11.8%
ROE(3y)60.64%
ROE(5y)70.77%
ROIC(3y)21.71%
ROIC(5y)19.96%
ROICexc(3y)23.23%
ROICexc(5y)21.74%
ROICexgc(3y)32.89%
ROICexgc(5y)32.31%
ROCE(3y)29.19%
ROCE(5y)26%
ROICexgc growth 3Y1.59%
ROICexgc growth 5Y4.02%
ROICexc growth 3Y9.55%
ROICexc growth 5Y8.81%
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%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 580.51% | ||
| Cap/Sales | 20.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 7.19 |
F-Score6
WACC8.57%
ROIC/WACC3.46
Cap/Depr(3y)374.28%
Cap/Depr(5y)279.43%
Cap/Sales(3y)16.34%
Cap/Sales(5y)12.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.67%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%60.97%
EPS Next Y76.53%
EPS Next 2Y52.79%
EPS Next 3Y41.48%
EPS Next 5Y30.19%
Revenue 1Y (TTM)36.83%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%37.64%
Revenue Next Year36.8%
Revenue Next 2Y27.26%
Revenue Next 3Y23.11%
Revenue Next 5Y17.7%
EBIT growth 1Y67.12%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year93.86%
EBIT Next 3Y42.49%
EBIT Next 5Y29.64%
FCF growth 1Y-101.56%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y75.24%
OCF growth 3Y6.69%
OCF growth 5Y12.76%