ELI LILLY & CO (LLY) Stock Fundamental Analysis
NYSE:LLY - New York Stock Exchange, Inc. - US5324571083 - Common Stock - Currency: USD
Taking everything into account, LLY scores 7 out of 10 in our fundamental rating. LLY was compared to 194 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, but there are some minor concerns on its financial health. LLY is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
In the past 5 years LLY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LLY (12.42%) is better than 94.33% of its industry peers.
With an excellent Return On Equity value of 70.45%, LLY belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
The Return On Invested Capital of LLY (27.17%) is better than 97.94% of its industry peers.
LLY had an Average Return On Invested Capital over the past 3 years of 21.71%. This is significantly above the industry average of 14.87%.
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 94.85% of the companies in the same industry.
LLY's Profit Margin has declined in the last couple of years.
LLY has a Operating Margin of 40.25%. This is amongst the best in the industry. LLY outperforms 97.42% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
LLY's Gross Margin of 81.70% is amongst the best of the industry. LLY outperforms 87.11% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LLY 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.
2.2 Solvency
LLY has an Altman-Z score of 7.62. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LLY (7.62) is better than 84.54% 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.
With a Debt to Equity ratio value of 2.19, LLY is not doing good in the industry: 77.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.62 |
ROIC/WACC2.73
WACC9.97%
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 Current ratio of 1.37. This is in the lower half of the industry: LLY underperforms 73.20% 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 worse Quick ratio (1.06) than 73.20% 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.
Looking at the last year, LLY shows a very strong growth in Revenue. The Revenue has grown by 36.38%.
Measured over the past years, LLY shows a quite strong growth in Revenue. The Revenue has been growing by 15.08% on average per year.
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 Year32.22%
Revenue Next 2Y25.41%
Revenue Next 3Y22.39%
Revenue Next 5Y17.46%
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
LLY is valuated quite expensively with a Price/Earnings ratio of 55.57.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than 79.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of LLY to the average of the S&P500 Index (27.54), we can say LLY is valued expensively.
LLY is valuated quite expensively with a Price/Forward Earnings ratio of 25.83.
LLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 70.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. LLY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.57 | ||
| Fwd PE | 25.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 78.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 35.57 |
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.
The excellent profitability rating of LLY 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)0.82
PEG (5Y)3.35
EPS Next 2Y50.91%
EPS Next 3Y41.6%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.79%, which is pretty low.
LLY's Dividend Yield is rather good when compared to the industry average which is at 4.06. LLY pays more dividend than 89.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of LLY grows each year by 15.60%, which is quite nice.
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
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 2Y50.91%
EPS Next 3Y41.6%
NYSE:LLY (7/21/2025, 2:40:08 PM)
764.661
-7.05 (-0.91%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.95%
Inst Owner Change-1.52%
Ins Owners0.16%
Ins Owner Change-0.74%
Market Cap724.70B
Analysts81.21
Price Target987.37 (29.13%)
Short Float %0.82%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend4.93
Dividend Growth(5Y)15.6%
DP43.74%
Div Incr Years10
Div Non Decr Years34
Ex-Date
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)-0.32%
PT rev (3m)-5.35%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-5.74%
Revenue NQ rev (1m)1.35%
Revenue NQ rev (3m)1.79%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.57 | ||
| Fwd PE | 25.83 | ||
| P/S | 14.79 | ||
| P/FCF | N/A | ||
| P/OCF | 77.78 | ||
| P/B | 45.97 | ||
| P/tB | 181.99 | ||
| EV/EBITDA | 35.57 |
EPS(TTM)13.76
EY1.8%
EPS(NY)29.61
Fwd EY3.87%
FCF(TTM)-1.34
FCFYN/A
OCF(TTM)9.83
OCFY1.29%
SpS51.71
BVpS16.63
TBVpS4.2
PEG (NY)0.82
PEG (5Y)3.35
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 | 7.62 |
F-Score6
WACC9.97%
ROIC/WACC2.73
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 Year32.22%
Revenue Next 2Y25.41%
Revenue Next 3Y22.39%
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%