ELI LILLY & CO (LLY) Stock Fundamental Analysis
NYSE:LLY - New York Stock Exchange, Inc. - US5324571083 - Common Stock - Currency: USD
LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 198 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 not overvalued while it is showing excellent growth. This is an interesting combination.
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.
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 12.42%. This is amongst the best in the industry. LLY outperforms 93.94% of its industry peers.
The Return On Equity of LLY (70.45%) is better than 98.99% of its industry peers.
LLY has a Return On Invested Capital of 27.17%. This is amongst the best in the industry. LLY outperforms 97.47% of its industry peers.
LLY had an Average Return On Invested Capital over the past 3 years of 21.71%. This is significantly below the industry average of 42.34%.
The 3 year average ROIC (21.71%) for LLY is below the current ROIC(27.17%), indicating increased profibility in the last year.
| 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
The Profit Margin of LLY (22.66%) is better than 94.44% of its industry peers.
LLY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 40.25%, LLY belongs to the best 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 85.86% 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 | 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.
The number of shares outstanding for LLY remains at a similar level compared to 1 year ago.
The number of shares outstanding for LLY has been reduced compared to 5 years ago.
The debt/assets ratio for LLY is higher compared to a year ago.
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's Altman-Z score of 7.43 is amongst the best of the industry. LLY outperforms 85.86% of its industry peers.
LLY has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
LLY's Debt to Equity ratio of 2.19 is on the low side compared to the rest of the industry. LLY is outperformed by 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.43 |
ROIC/WACC2.8
WACC9.7%
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's Current ratio of 1.37 is on the low side compared to the rest of the industry. LLY is outperformed by 74.75% 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 73.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.01%, which is quite impressive.
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!
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
Based on estimates for the next years, LLY will show a very strong growth in Earnings Per Share. The EPS will grow by 30.37% on average per year.
The Revenue is expected to grow by 17.76% on average over the next years. This is quite good.
EPS Next Y68%
EPS Next 2Y51.7%
EPS Next 3Y42.22%
EPS Next 5Y30.37%
Revenue Next Year31.67%
Revenue Next 2Y25.5%
Revenue Next 3Y22.67%
Revenue Next 5Y17.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 52.84 indicates a quite expensive valuation of LLY.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than 79.80% of the companies in the same industry.
LLY is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.30, which indicates a rather expensive current valuation of LLY.
LLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 74.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. LLY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.84 | ||
| Fwd PE | 24.3 |
4.2 Price Multiples
78.28% of the companies in the same industry are more expensive than LLY, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.49 |
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.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 42.22% in the coming years.
PEG (NY)0.78
PEG (5Y)3.19
EPS Next 2Y51.7%
EPS Next 3Y42.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, LLY is not a good candidate for dividend investing.
LLY's Dividend Yield is rather good when compared to the industry average which is at 4.24. LLY pays more dividend than 89.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 15.60%!
LLY has been paying a dividend for at least 10 years, so it has 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)15.6%
Div Incr Years10
Div Non Decr Years34
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 2Y51.7%
EPS Next 3Y42.22%
NYSE:LLY (5/21/2025, 2:55:07 PM)
727.101
-19.91 (-2.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.27%
Inst Owner Change8.37%
Ins Owners0.16%
Ins Owner Change-0.74%
Market Cap689.28B
Analysts81.21
Price Target1013.54 (39.39%)
Short Float %0.78%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)-2.84%
PT rev (3m)1.33%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)-5.77%
EPS NY rev (3m)-6.13%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.84 | ||
| Fwd PE | 24.3 | ||
| P/S | 14.07 | ||
| P/FCF | N/A | ||
| P/OCF | 73.98 | ||
| P/B | 43.72 | ||
| P/tB | 173.1 | ||
| EV/EBITDA | 34.49 |
EPS(TTM)13.76
EY1.89%
EPS(NY)29.92
Fwd EY4.11%
FCF(TTM)-1.34
FCFYN/A
OCF(TTM)9.83
OCFY1.35%
SpS51.69
BVpS16.63
TBVpS4.2
PEG (NY)0.78
PEG (5Y)3.19
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 | 7.43 |
F-Score6
WACC9.7%
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 Y68%
EPS Next 2Y51.7%
EPS Next 3Y42.22%
EPS Next 5Y30.37%
Revenue 1Y (TTM)36.38%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%45.17%
Revenue Next Year31.67%
Revenue Next 2Y25.5%
Revenue Next 3Y22.67%
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%