ELI LILLY & CO (LLY)

US5324571083 - Common Stock

732.04  -13.65 (-1.83%)

Fundamental Rating

6

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. While LLY has a great profitability rating, there are quite some concerns on its financial health. LLY has a correct valuation and a medium growth rate.



9

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

LLY has a better Return On Assets (8.19%) than 91.28% of its industry peers.
LLY has a better Return On Equity (48.65%) than 97.44% of its industry peers.
LLY has a Return On Invested Capital of 24.14%. This is amongst the best in the industry. LLY outperforms 97.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 RankSector 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

LLY has a better Profit Margin (15.36%) than 90.77% of its industry peers.
In the last couple of years the Profit Margin of LLY has remained more or less at the same level.
LLY has a Operating Margin of 30.26%. This is amongst the best in the industry. LLY outperforms 94.36% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
LLY has a Gross Margin of 79.25%. This is amongst the best in the industry. LLY outperforms 83.59% of its industry peers.
LLY's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

3

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.
Compared to 1 year ago, LLY has about the same amount of shares outstanding.
Compared to 5 years ago, LLY has less shares outstanding
LLY has a worse debt/assets ratio than last year.

2.2 Solvency

LLY has an Altman-Z score of 9.25. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY has a Altman-Z score of 9.25. This is amongst the best in the industry. LLY outperforms 87.18% 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.
Looking at the Debt to Equity ratio, with a value of 1.70, LLY is doing worse than 79.49% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF N/A
Altman-Z 9.25
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.
With a Current ratio value of 0.94, LLY is not doing good in the industry: 87.69% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.73, LLY is doing worse than 85.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.73

6

3. Growth

3.1 Past

The earnings per share for LLY have decreased strongly by -21.88% in the last year.
Measured over the past 5 years, LLY shows a small growth in Earnings Per Share. The EPS has been growing by 2.60% on average per year.
Looking at the last year, LLY shows a quite strong growth in Revenue. The Revenue has grown by 19.56% in the last year.
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.
Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 15.25% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 115.83 indicates a quite expensive valuation of LLY.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than 79.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. LLY is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 58.14, 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 77.44% of the companies are valued more expensively.
LLY is valuated expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 115.83
Fwd PE 58.14

4.2 Price Multiples

75.90% of the companies in the same industry are more expensive than LLY, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 61.69

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.
LLY's earnings are expected to grow with 57.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)44.63
EPS Next 2Y70.81%
EPS Next 3Y57.29%

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.70%, 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 4.46. LLY pays more dividend than 90.26% of the companies in the same industry.
With a Dividend Yield of 0.70, LLY pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector 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.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.65%
EPS Next 2Y70.81%
EPS Next 3Y57.29%

ELI LILLY & CO

NYSE:LLY (4/24/2024, 10:29:03 AM)

732.04

-13.65 (-1.83%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap696.00B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.7%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 115.83
Fwd PE 58.14
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.17
PEG (5Y)44.63
Profitability
Industry RankSector 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 RankSector 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
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y