ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
FRA:LLY - Deutsche Boerse Ag - US5324571083 - Common Stock - Currency: EUR
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 51 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.
1. Profitability
1.1 Basic Checks
In the past year LLY was profitable.
In the past year LLY had a positive cash flow from operations.
LLY had positive earnings in each of the past 5 years.
Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
LLY has a better Return On Assets (12.42%) than 82.35% of its industry peers.
LLY has a Return On Equity of 70.45%. This is amongst the best in the industry. LLY outperforms 94.12% of its industry peers.
LLY has a better Return On Invested Capital (27.17%) than 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LLY is significantly above the industry average of 15.16%.
The last Return On Invested Capital (27.17%) for LLY is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.42% | ||
| ROE | 70.45% | ||
| ROIC | 27.17% |
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 22.66%, LLY belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
LLY's Profit Margin has declined in the last couple of years.
LLY's Operating Margin of 40.25% is amongst the best of the industry. LLY outperforms 94.12% of its industry peers.
LLY's Operating Margin has improved in the last couple of years.
LLY has a Gross Margin of 81.70%. This is amongst the best in the industry. LLY outperforms 80.39% of its industry peers.
LLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.25% | ||
| PM (TTM) | 22.66% | ||
| GM | 81.7% |
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 7.54. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY's Altman-Z score of 7.54 is amongst the best of the industry. LLY outperforms 92.16% of its industry peers.
A Debt/Equity ratio of 2.19 is on the high side and indicates that LLY has dependencies on debt financing.
The Debt to Equity ratio of LLY (2.19) is worse than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.54 |
ROIC/WACC2.96
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.37 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a Current ratio of 1.37. This is comparable to the rest of the industry: LLY outperforms 52.94% of its industry peers.
LLY has a Quick Ratio of 1.06. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
LLY has a Quick ratio of 1.06. This is in the better half of the industry: LLY outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.01% 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 36.38% in the past year. This is a very strong growth!
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)89.01%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%29.46%
Revenue 1Y (TTM)36.38%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%45.17%
3.2 Future
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.28% yearly.
The Revenue is expected to grow by 17.46% on average over the next years. This is quite good.
EPS Next Y68.06%
EPS Next 2Y50.91%
EPS Next 3Y41.6%
EPS Next 5Y30.28%
Revenue Next Year33.03%
Revenue Next 2Y26.05%
Revenue Next 3Y22.96%
Revenue Next 5Y17.46%
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 54.00, 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 64.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of LLY to the average of the S&P500 Index (27.03), we can say LLY is valued expensively.
Based on the Price/Forward Earnings ratio of 25.10, the valuation of LLY can be described as expensive.
Based on the Price/Forward Earnings ratio, LLY is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (36.28), we can say LLY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54 | ||
| Fwd PE | 25.1 |
4.2 Price Multiples
LLY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LLY is more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 35.12 |
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 41.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)3.26
EPS Next 2Y50.91%
EPS Next 3Y41.6%
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 3.14, LLY has a dividend in line with its industry peers.
With a Dividend Yield of 0.81, LLY pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 43.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.74%
EPS Next 2Y50.91%
EPS Next 3Y41.6%
FRA:LLY (8/6/2025, 5:29:58 PM)
643.7
-15.8 (-2.4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.95%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap610.06B
Analysts81.21
Price Target849.9 (32.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend4.33
Dividend Growth(5Y)15.6%
DP43.74%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.92%
Min EPS beat(2)6.45%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)11.23%
Min EPS beat(4)-20.34%
Max EPS beat(4)49.43%
EPS beat(8)7
Avg EPS beat(8)29.89%
EPS beat(12)9
Avg EPS beat(12)18.64%
EPS beat(16)11
Avg EPS beat(16)14.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)12.82%
Revenue beat(8)4
Avg Revenue beat(8)2.39%
Revenue beat(12)5
Avg Revenue beat(12)0.98%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-0.96%
PT rev (3m)-5.04%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-5.74%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54 | ||
| Fwd PE | 25.1 | ||
| P/S | 14.37 | ||
| P/FCF | N/A | ||
| P/OCF | 75.6 | ||
| P/B | 44.68 | ||
| P/tB | 176.89 | ||
| EV/EBITDA | 35.12 |
EPS(TTM)11.92
EY1.85%
EPS(NY)25.64
Fwd EY3.98%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)8.51
OCFY1.32%
SpS44.78
BVpS14.41
TBVpS3.64
PEG (NY)0.79
PEG (5Y)3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.42% | ||
| ROE | 70.45% | ||
| ROCE | 33.25% | ||
| ROIC | 27.17% | ||
| ROICexc | 28.73% | ||
| ROICexgc | 36.37% | ||
| OM | 40.25% | ||
| PM (TTM) | 22.66% | ||
| GM | 81.7% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 578.92% | ||
| Cap/Sales | 21.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 7.54 |
F-Score6
WACC9.18%
ROIC/WACC2.96
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)89.01%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%29.46%
EPS Next Y68.06%
EPS Next 2Y50.91%
EPS Next 3Y41.6%
EPS Next 5Y30.28%
Revenue 1Y (TTM)36.38%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%45.17%
Revenue Next Year33.03%
Revenue Next 2Y26.05%
Revenue Next 3Y22.96%
Revenue Next 5Y17.46%
EBIT growth 1Y73.83%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year83.18%
EBIT Next 3Y42.52%
EBIT Next 5Y29.3%
FCF growth 1Y-133.54%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y36.68%
OCF growth 3Y6.69%
OCF growth 5Y12.76%