ELI LILLY & CO (LLY)
US5324571083 - Common Stock
Taking everything into account, LLY scores 6 out of 10 in our fundamental rating. LLY was compared to 198 industry peers in the Pharmaceuticals industry. LLY has an excellent profitability rating, but there are concerns on its financial health. LLY is not valued too expensively and it also shows a decent growth rate.
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.
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
With an excellent Return On Assets value of 8.19%, LLY belongs to the best of the industry, outperforming 91.28% of the companies in the same industry.
LLY has a Return On Equity of 48.65%. This is amongst the best in the industry. LLY outperforms 97.44% of its industry peers.
The Return On Invested Capital of LLY (24.14%) is better than 97.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LLY is above the industry average of 16.40%.
The last Return On Invested Capital (24.14%) for LLY is above the 3 year average (20.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 48.65% | ||
| ROIC | 24.14% |
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
With an excellent Profit Margin value of 15.36%, LLY belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
LLY's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 30.26%, LLY belongs to the top of the industry, outperforming 94.36% of the companies in the same industry.
LLY's Operating Margin has improved in the last couple of years.
LLY's Gross Margin of 79.25% is amongst the best of the industry. LLY outperforms 83.59% 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 | 30.26% | ||
| PM (TTM) | 15.36% | ||
| GM | 79.25% |
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
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.
LLY has less shares outstanding than it did 5 years ago.
LLY has a worse debt/assets ratio than last year.
2.2 Solvency
LLY has an Altman-Z score of 9.04. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY has a Altman-Z score of 9.04. This is amongst the best in the industry. LLY outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that LLY has dependencies on debt financing.
LLY has a worse Debt to Equity ratio (1.70) than 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.04 |
ROIC/WACC2.67
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.94 indicates that LLY may have some problems paying its short term obligations.
The Current ratio of LLY (0.94) is worse than 87.69% of its industry peers.
LLY has a Quick Ratio of 0.94. 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 worse Quick ratio (0.73) than 85.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for LLY have decreased strongly by -21.88% in the last year.
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 19.56% in the past year. This is quite good.
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)-21.88%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS growth Q2Q19.14%
Revenue 1Y (TTM)19.56%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Revenue growth Q2Q28.1%
3.2 Future
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.83% yearly.
LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.25% yearly.
EPS Next Y99.22%
EPS Next 2Y70.81%
EPS Next 3Y57.29%
EPS Next 5Y36.83%
Revenue Next Year22.92%
Revenue Next 2Y23.93%
Revenue Next 3Y22.03%
Revenue Next 5Y15.25%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 115.72, the valuation of LLY can be described as expensive.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
LLY is valuated expensively when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 58.09, the valuation of LLY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 77.44% 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 (21.40), we can say LLY is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.72 | ||
| Fwd PE | 58.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit cheaper than the industry average as 75.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 60.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LLY may justify a higher PE ratio.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 57.29% in the coming years.
PEG (NY)1.17
PEG (5Y)44.58
EPS Next 2Y70.81%
EPS Next 3Y57.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.46, LLY pays a better dividend. On top of this LLY pays more dividend than 90.26% of the companies listed in the same industry.
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 | 0.7% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.87%
Div Incr Years9
Div Non Decr Years19
5.3 Sustainability
LLY pays out 77.65% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.65%
EPS Next 2Y70.81%
EPS Next 3Y57.29%
ELI LILLY & CO
NYSE:LLY (4/22/2024, 7:12:58 PM)
After market: 730 -1.33 (-0.18%)731.33
+5.02 (+0.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
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Market Cap695.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 115.72 | ||
| Fwd PE | 58.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)1.17
PEG (5Y)44.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | 48.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.26% | ||
| PM (TTM) | 15.36% | ||
| GM | 79.25% | ||
| 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.73 | ||
| 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)
Growth
EPS 1Y (TTM)-21.88%
EPS 3Y-7.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y99.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.56%
Revenue growth 3Y11.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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