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ELI LILLY & CO (LLY) Stock Fundamental Analysis

NYSE:LLY - New York Stock Exchange, Inc. - US5324571083 - Common Stock - Currency: USD

715.56  -30.5 (-4.09%)

After market: 714.7 -0.86 (-0.12%)

Fundamental Rating

6

Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 198 industry peers in the Pharmaceuticals industry. LLY has an excellent profitability rating, but there are some minor concerns on its financial health. LLY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

LLY had positive earnings in the past year.
LLY had a positive operating cash flow in the past year.
LLY had positive earnings in each of the past 5 years.
LLY had a positive operating cash flow in each of the past 5 years.
LLY Yearly Net Income VS EBIT VS OCF VS FCFLLY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

The Return On Assets of LLY (12.42%) is better than 94.44% of its industry peers.
The Return On Equity of LLY (70.45%) is better than 98.99% of its industry peers.
The Return On Invested Capital of LLY (27.17%) is better than 96.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LLY is significantly below the industry average of 41.51%.
The 3 year average ROIC (21.71%) for LLY is below the current ROIC(27.17%), indicating increased profibility in the last year.
Industry RankSector 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%
LLY Yearly ROA, ROE, ROICLLY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

LLY has a better Profit Margin (22.66%) than 94.44% of its industry peers.
In the last couple of years the Profit Margin of LLY has declined.
Looking at the Operating Margin, with a value of 40.25%, LLY belongs to the top of the industry, outperforming 96.46% of the companies in the same industry.
In the last couple of years the Operating Margin of LLY has grown nicely.
The Gross Margin of LLY (81.70%) is better than 86.36% of its industry peers.
LLY's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
LLY Yearly Profit, Operating, Gross MarginsLLY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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4

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.
LLY has about the same amout of shares outstanding than it did 1 year ago.
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.
LLY Yearly Shares OutstandingLLY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
LLY Yearly Total Debt VS Total AssetsLLY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

LLY has an Altman-Z score of 7.43. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY has a Altman-Z score of 7.43. This is amongst the best in the industry. LLY outperforms 86.36% 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 75.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF N/A
Altman-Z 7.43
ROIC/WACC2.8
WACC9.72%
LLY Yearly LT Debt VS Equity VS FCFLLY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B

2.3 Liquidity

LLY has a Current Ratio of 1.37. 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 worse Current ratio (1.37) than 76.77% 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's Quick ratio of 1.06 is on the low side compared to the rest of the industry. LLY is outperformed by 74.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.37
Quick Ratio 1.06
LLY Yearly Current Assets VS Current LiabilitesLLY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 89.01% over the past year.
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 36.38%.
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
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

The Earnings Per Share is expected to grow by 30.37% on average over the next years. This is a very strong growth
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 Y78.29%
EPS Next 2Y51.71%
EPS Next 3Y41.96%
EPS Next 5Y30.37%
Revenue Next Year31.86%
Revenue Next 2Y25.72%
Revenue Next 3Y22.91%
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.
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.
LLY Yearly Revenue VS EstimatesLLY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
LLY Yearly EPS VS EstimatesLLY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 52.00, which means the current valuation is very expensive for LLY.
Compared to the rest of the industry, the Price/Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 78.79% of the companies listed in the same industry.
LLY is valuated expensively when we compare the Price/Earnings ratio to 24.85, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.92 indicates a rather expensive valuation of LLY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 75.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, LLY is valued at the same level.
Industry RankSector Rank
PE 52
Fwd PE 23.92
LLY Price Earnings VS Forward Price EarningsLLY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit cheaper than 77.27% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 34.45
LLY Per share dataLLY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

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.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 41.96% in the coming years.
PEG (NY)0.66
PEG (5Y)3.14
EPS Next 2Y51.71%
EPS Next 3Y41.96%

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6

5. Dividend

5.1 Amount

With a yearly dividend of 0.80%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.19, LLY pays a better dividend. On top of this LLY pays more dividend than 89.90% of the companies listed in the same industry.
With a Dividend Yield of 0.80, LLY pays less dividend than the S&P500 average, which is at 2.40.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

The dividend of LLY is nicely growing with an annual growth rate of 15.60%!
LLY has paid a dividend for at least 10 years, which is a reliable track record.
LLY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.6%
Div Incr Years10
Div Non Decr Years34
LLY Yearly Dividends per shareLLY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

43.74% of the earnings are spent on dividend by LLY. 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 2Y51.71%
EPS Next 3Y41.96%
LLY Yearly Income VS Free CF VS DividendLLY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B 8B 10B
LLY Dividend Payout.LLY Dividend Payout, showing the Payout Ratio.LLY Dividend Payout.PayoutRetained Earnings

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ELI LILLY & CO

NYSE:LLY (5/14/2025, 8:04:00 PM)

After market: 714.7 -0.86 (-0.12%)

715.56

-30.5 (-4.09%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners83.27%
Inst Owner Change7.89%
Ins Owners0.16%
Ins Owner Change-0.73%
Market Cap678.34B
Analysts81.21
Price Target1013.54 (41.64%)
Short Float %0.78%
Short Ratio1.76
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend4.93
Dividend Growth(5Y)15.6%
DP43.74%
Div Incr Years10
Div Non Decr Years34
Ex-Date05-16 2025-05-16 (1.5)
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)-2.84%
PT rev (3m)1.33%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)1.71%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.44%
Valuation
Industry RankSector Rank
PE 52
Fwd PE 23.92
P/S 13.84
P/FCF N/A
P/OCF 72.8
P/B 43.03
P/tB 170.35
EV/EBITDA 34.45
EPS(TTM)13.76
EY1.92%
EPS(NY)29.92
Fwd EY4.18%
FCF(TTM)-1.34
FCFYN/A
OCF(TTM)9.83
OCFY1.37%
SpS51.69
BVpS16.63
TBVpS4.2
PEG (NY)0.66
PEG (5Y)3.14
Profitability
Industry RankSector 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 RankSector 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 7.43
F-Score6
WACC9.72%
ROIC/WACC2.8
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 Y78.29%
EPS Next 2Y51.71%
EPS Next 3Y41.96%
EPS Next 5Y30.37%
Revenue 1Y (TTM)36.38%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%45.17%
Revenue Next Year31.86%
Revenue Next 2Y25.72%
Revenue Next 3Y22.91%
Revenue Next 5Y17.76%
EBIT growth 1Y73.83%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year96.28%
EBIT Next 3Y44.1%
EBIT Next 5Y29.16%
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%