ELI LILLY & CO (LLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LLY - US5324571083 - Common Stock
982.22 USD
-15.37 (-1.54%)
984.11 USD
+1.89 (+0.19%)
We assign a fundamental rating of 7 out of 10 to LLY. LLY was compared to 191 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! Finally LLY also has an excellent dividend rating. These ratings could make LLY a good candidate for dividend and growth investing.
1. Profitability
1.1 Basic Checks
In the past year LLY was profitable.
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.
1.2 Ratios
The Return On Assets of LLY (16.02%) is better than 95.81% of its industry peers.
Looking at the Return On Equity, with a value of 77.38%, LLY belongs to the top of the industry, outperforming 99.48% of the companies in the same industry.
LLY's Return On Invested Capital of 28.84% is amongst the best of the industry. LLY outperforms 97.91% 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 12.85%.
The 3 year average ROIC (21.71%) for LLY is below the current ROIC(28.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 77.38% | ||
| ROIC | 28.84% |
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
LLY's Profit Margin of 30.99% is amongst the best of the industry. LLY outperforms 94.76% of its industry peers.
In the last couple of years the Profit Margin of LLY has declined.
With an excellent Operating Margin value of 44.41%, LLY belongs to the best of the industry, outperforming 98.43% of the companies in the same industry.
In the last couple of years the Operating Margin of LLY has grown nicely.
Looking at the Gross Margin, with a value of 83.03%, LLY belongs to the top of the industry, outperforming 86.91% of the companies in the same industry.
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 | 44.41% | ||
| PM (TTM) | 30.99% | ||
| GM | 83.03% |
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.
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.
The debt/assets ratio for LLY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.89 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY has a Altman-Z score of 7.89. This is amongst the best in the industry. LLY outperforms 80.10% of its industry peers.
LLY has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as LLY would need 6.60 years to pay back of all of its debts.
LLY's Debt to FCF ratio of 6.60 is amongst the best of the industry. LLY outperforms 80.10% of its industry peers.
A Debt/Equity ratio of 1.72 is on the high side and indicates that LLY has dependencies on debt financing.
With a Debt to Equity ratio value of 1.72, LLY is not doing good in the industry: 77.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 7.89 |
ROIC/WACC3.17
WACC9.11%
2.3 Liquidity
LLY has a Current Ratio of 1.55. 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 1.55. This is in the lower half of the industry: LLY underperforms 70.16% of its industry peers.
LLY has a Quick Ratio of 1.24. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.24, LLY is doing worse than 70.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.22%, which is quite impressive.
Measured over the past years, LLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.57% on average per year.
The Revenue has grown by 45.41% 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)116.22%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%494.92%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
3.2 Future
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.53% yearly.
LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.88% yearly.
EPS Next Y84.93%
EPS Next 2Y58.19%
EPS Next 3Y45.43%
EPS Next 5Y31.53%
Revenue Next Year41.01%
Revenue Next 2Y29.88%
Revenue Next 3Y25.23%
Revenue Next 5Y18.88%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 44.67, the valuation of LLY can be described as expensive.
77.49% of the companies in the same industry are more expensive than LLY, based on the Price/Earnings ratio.
LLY is valuated expensively when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.19, which means the current valuation is very expensive for LLY.
Based on the Price/Forward Earnings ratio, LLY is valued a bit cheaper than the industry average as 71.73% of the companies are valued more expensively.
LLY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.67 | ||
| Fwd PE | 30.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit cheaper than 78.01% of the companies in the same industry.
LLY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LLY is cheaper than 73.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 144.27 | ||
| EV/EBITDA | 33.97 |
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.
The excellent profitability rating of LLY may justify a higher PE ratio.
LLY's earnings are expected to grow with 45.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)2.7
EPS Next 2Y58.19%
EPS Next 3Y45.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.46, LLY pays a better dividend. On top of this LLY pays more dividend than 89.53% of the companies listed in the same industry.
With a Dividend Yield of 0.59, LLY pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 15.59%!
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)15.59%
Div Incr Years10
Div Non Decr Years34
5.3 Sustainability
LLY pays out 28.28% of its income as dividend. This is a sustainable payout ratio.
The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.28%
EPS Next 2Y58.19%
EPS Next 3Y45.43%
982.22
-15.37 (-1.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.08%
Inst Owner Change-0.91%
Ins Owners0.16%
Ins Owner Change-4.01%
Market Cap928.57B
Revenue(TTM)59.42B
Net Income(TTM)18.41B
Analysts80.54
Price Target1068.35 (8.77%)
Short Float %0.77%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend4.93
Dividend Growth(5Y)15.59%
DP28.28%
Div Incr Years10
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.28%
Min EPS beat(2)14.51%
Max EPS beat(2)22.05%
EPS beat(4)4
Avg EPS beat(4)13.1%
Min EPS beat(4)6.45%
Max EPS beat(4)22.05%
EPS beat(8)7
Avg EPS beat(8)12.06%
EPS beat(12)10
Avg EPS beat(12)23.73%
EPS beat(16)13
Avg EPS beat(16)17.41%
Revenue beat(2)2
Avg Revenue beat(2)6.77%
Min Revenue beat(2)4.72%
Max Revenue beat(2)8.81%
Revenue beat(4)2
Avg Revenue beat(4)2.95%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)8.81%
Revenue beat(8)4
Avg Revenue beat(8)2.39%
Revenue beat(12)7
Avg Revenue beat(12)2.64%
Revenue beat(16)9
Avg Revenue beat(16)2.04%
PT rev (1m)15.27%
PT rev (3m)17.48%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)3.79%
EPS NY rev (1m)2.22%
EPS NY rev (3m)4.57%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)2.63%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.67 | ||
| Fwd PE | 30.19 | ||
| P/S | 15.63 | ||
| P/FCF | 144.27 | ||
| P/OCF | 57.81 | ||
| P/B | 39.03 | ||
| P/tB | 81.11 | ||
| EV/EBITDA | 33.97 |
EPS(TTM)21.99
EY2.24%
EPS(NY)32.53
Fwd EY3.31%
FCF(TTM)6.81
FCFY0.69%
OCF(TTM)16.99
OCFY1.73%
SpS62.85
BVpS25.17
TBVpS12.11
PEG (NY)0.53
PEG (5Y)2.7
Graham Number111.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 77.38% | ||
| ROCE | 35.28% | ||
| ROIC | 28.84% | ||
| ROICexc | 33.25% | ||
| ROICexgc | 41.06% | ||
| OM | 44.41% | ||
| PM (TTM) | 30.99% | ||
| GM | 83.03% | ||
| FCFM | 10.83% |
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%
ROICexgc growth 3Y1.59%
ROICexgc growth 5Y4.02%
ROICexc growth 3Y9.55%
ROICexc growth 5Y8.82%
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-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 507.66% | ||
| Cap/Sales | 16.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.78% | ||
| Profit Quality | 34.96% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 7.89 |
F-Score7
WACC9.11%
ROIC/WACC3.17
Cap/Depr(3y)385.26%
Cap/Depr(5y)286.02%
Cap/Sales(3y)16.93%
Cap/Sales(5y)13.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)116.22%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%494.92%
EPS Next Y84.93%
EPS Next 2Y58.19%
EPS Next 3Y45.43%
EPS Next 5Y31.53%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
Revenue Next Year41.01%
Revenue Next 2Y29.88%
Revenue Next 3Y25.23%
Revenue Next 5Y18.88%
EBIT growth 1Y82.81%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year101.24%
EBIT Next 3Y46.41%
EBIT Next 5Y32.15%
FCF growth 1Y4003.21%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y158.46%
OCF growth 3Y6.69%
OCF growth 5Y12.76%
ELI LILLY & CO / LLY FAQ
What is the fundamental rating for LLY stock?
ChartMill assigns a fundamental rating of 7 / 10 to LLY.
What is the valuation status for LLY stock?
ChartMill assigns a valuation rating of 5 / 10 to ELI LILLY & CO (LLY). This can be considered as Fairly Valued.
What is the profitability of LLY stock?
ELI LILLY & CO (LLY) has a profitability rating of 9 / 10.
What is the financial health of ELI LILLY & CO (LLY) stock?
The financial health rating of ELI LILLY & CO (LLY) is 5 / 10.
What is the expected EPS growth for ELI LILLY & CO (LLY) stock?
The Earnings per Share (EPS) of ELI LILLY & CO (LLY) is expected to grow by 84.93% in the next year.