ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
FRA:LLY - US5324571083 - Common Stock
616.4 EUR
-5.6 (-0.9%)
We assign a fundamental rating of 6 out of 10 to LLY. LLY was compared to 50 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 valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
LLY had positive earnings in the past year.
In the past year LLY had a positive cash flow from operations.
In the past 5 years LLY has always been profitable.
Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
LLY has a Return On Assets of 13.67%. This is amongst the best in the industry. LLY outperforms 88.00% of its industry peers.
With an excellent Return On Equity value of 75.52%, LLY belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 29.63%, LLY belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LLY is significantly above the industry average of 14.78%.
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 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LLY has declined.
LLY's Operating Margin of 42.13% is amongst the best of the industry. LLY outperforms 94.00% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
LLY's Gross Margin of 82.64% is amongst the best of the industry. LLY outperforms 84.00% of its industry peers.
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
LLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LLY has about the same amount of shares outstanding.
The number of shares outstanding for LLY has been reduced compared to 5 years ago.
LLY has a worse debt/assets ratio than last year.
2.2 Solvency
LLY has an Altman-Z score of 6.63. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LLY (6.63) is better than 92.00% of its industry peers.
LLY has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
LLY has a worse Debt to Equity ratio (1.87) than 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.63 |
ROIC/WACC3.03
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.28 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a Current ratio of 1.28. This is comparable to the rest of the industry: LLY outperforms 50.00% of its industry peers.
A Quick Ratio of 1.00 indicates that LLY may have some problems paying its short term obligations.
LLY has a Quick ratio (1.00) which is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 16.57% on average over the past years. This is quite good.
Looking at the last year, LLY shows a very strong growth in Revenue. 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
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.30% yearly.
Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 17.76% on average per year.
EPS Next Y76.85%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
EPS Next 5Y30.3%
Revenue Next Year36.89%
Revenue Next 2Y27.13%
Revenue Next 3Y23.54%
Revenue Next 5Y17.76%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 44.63, which means the current valuation is very expensive for LLY.
LLY's Price/Earnings ratio is a bit more expensive when compared to the industry. LLY is more expensive than 64.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. LLY is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 23.61, LLY is valued on the expensive side.
Based on the Price/Forward Earnings ratio, LLY is valued a bit more expensive than 64.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (22.66), we can say LLY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.63 | ||
| Fwd PE | 23.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit more expensive than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.79 |
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.
LLY has an outstanding profitability rating, which may justify a higher PE ratio.
LLY's earnings are expected to grow with 42.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)2.69
EPS Next 2Y53.25%
EPS Next 3Y42.28%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 3.06, LLY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 15.60%!
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.
The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.46%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
FRA:LLY (9/8/2025, 5:14:36 PM)
616.4
-5.6 (-0.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.01%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap583.40B
Analysts80
Price Target766.66 (24.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)-9.79%
PT rev (3m)-12.06%
EPS NQ rev (1m)3.53%
EPS NQ rev (3m)2.97%
EPS NY rev (1m)5.23%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)3.32%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)2.9%
Revenue NY rev (3m)3.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.63 | ||
| Fwd PE | 23.61 | ||
| P/S | 12.81 | ||
| P/FCF | N/A | ||
| P/OCF | 62.39 | ||
| P/B | 37.34 | ||
| P/tB | 103.49 | ||
| EV/EBITDA | 29.79 |
EPS(TTM)13.81
EY2.24%
EPS(NY)26.1
Fwd EY4.23%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)9.88
OCFY1.6%
SpS48.11
BVpS16.51
TBVpS5.96
PEG (NY)0.58
PEG (5Y)2.69
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%
ROICexcg growth 3Y1.59%
ROICexcg 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 | 6.63 |
F-Score6
WACC9.79%
ROIC/WACC3.03
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 Y76.85%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
EPS Next 5Y30.3%
Revenue 1Y (TTM)36.83%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%37.64%
Revenue Next Year36.89%
Revenue Next 2Y27.13%
Revenue Next 3Y23.54%
Revenue Next 5Y17.76%
EBIT growth 1Y67.12%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year84.34%
EBIT Next 3Y42.93%
EBIT Next 5Y29.73%
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%