ELI LILLY & CO (LLY) Stock Fundamental Analysis
USA - NYSE:LLY - US5324571083 - Common Stock
720.97 USD
+6.38 (+0.89%)
Taking everything into account, LLY scores 6 out of 10 in our fundamental rating. LLY was compared to 196 industry peers in the Pharmaceuticals industry. While LLY belongs to the best of the industry regarding profitability, there are concerns on its financial health. LLY is not priced too expensively while it is growing strongly. Keep and eye on this one! LLY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LLY had positive earnings in the past year.
In the past year LLY had a positive cash flow from operations.
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
With an excellent Return On Assets value of 13.67%, LLY belongs to the best of the industry, outperforming 94.39% of the companies in the same industry.
The Return On Equity of LLY (75.52%) is better than 98.47% of its industry peers.
LLY has a better Return On Invested Capital (29.63%) than 97.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LLY is significantly above the industry average of 15.28%.
The 3 year average ROIC (21.71%) for LLY is below the current ROIC(29.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 75.52% | ||
| ROIC | 29.63% |
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 has a Profit Margin of 25.91%. This is amongst the best in the industry. LLY outperforms 95.92% of its industry peers.
In the last couple of years the Profit Margin of LLY has declined.
The Operating Margin of LLY (42.13%) is better than 97.96% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
The Gross Margin of LLY (82.64%) is better than 87.76% of its industry peers.
LLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.13% | ||
| PM (TTM) | 25.91% | ||
| GM | 82.64% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LLY is creating value.
LLY has about the same amout of shares outstanding than it did 1 year ago.
LLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LLY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.54 indicates that LLY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.54, LLY belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
A Debt/Equity ratio of 1.87 is on the high side and indicates that LLY has dependencies on debt financing.
LLY's Debt to Equity ratio of 1.87 is on the low side compared to the rest of the industry. LLY is outperformed by 76.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.54 |
ROIC/WACC3.06
WACC9.68%
2.3 Liquidity
LLY has a Current Ratio of 1.28. 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 1.28 is on the low side compared to the rest of the industry. LLY is outperformed by 73.98% of its industry peers.
A Quick Ratio of 1.00 indicates that LLY may have some problems paying its short term obligations.
LLY has a worse Quick ratio (1.00) than 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.67% 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.
LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.83%.
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
EPS 1Y (TTM)77.67%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%60.97%
Revenue 1Y (TTM)36.83%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%37.64%
3.2 Future
The Earnings Per Share is expected to grow by 30.30% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.76% on average over the next years. This is quite good.
EPS Next Y76.85%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
EPS Next 5Y30.3%
Revenue Next Year36.76%
Revenue Next 2Y27.21%
Revenue Next 3Y23.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 44.64, 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 78.57% of the companies listed in the same industry.
LLY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.06.
A Price/Forward Earnings ratio of 23.61 indicates a rather expensive valuation of LLY.
73.47% of the companies in the same industry are more expensive than LLY, based on the Price/Forward Earnings ratio.
LLY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.64 | ||
| Fwd PE | 23.61 |
4.2 Price Multiples
79.59% 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 | 29.28 |
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 42.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)2.69
EPS Next 2Y53.25%
EPS Next 3Y42.28%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 5.74, LLY pays a better dividend. On top of this LLY pays more dividend than 89.80% of the companies listed in the same industry.
With a Dividend Yield of 0.79, LLY pays less dividend than the S&P500 average, which is at 2.38.
| 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 been paying a dividend for at least 10 years, so it has 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
36.46% of the earnings are spent on dividend by LLY. This is a low number and sustainable payout ratio.
The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.46%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
NYSE:LLY (9/26/2025, 10:12:00 AM)
720.97
+6.38 (+0.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.01%
Inst Owner Change-8.74%
Ins Owners0.16%
Ins Owner Change-0.4%
Market Cap682.37B
Analysts80
Price Target909.39 (26.13%)
Short Float %0.85%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend4.93
Dividend Growth(5Y)15.6%
DP36.46%
Div Incr Years10
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.94%
Min EPS beat(2)9.38%
Max EPS beat(2)14.51%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-20.34%
Max EPS beat(4)14.51%
EPS beat(8)7
Avg EPS beat(8)31.01%
EPS beat(12)10
Avg EPS beat(12)22.08%
EPS beat(16)12
Avg EPS beat(16)15.86%
Revenue beat(2)1
Avg Revenue beat(2)2.11%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)4.72%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)4.72%
Revenue beat(8)4
Avg Revenue beat(8)1.92%
Revenue beat(12)6
Avg Revenue beat(12)1.89%
Revenue beat(16)9
Avg Revenue beat(16)1.54%
PT rev (1m)-7.97%
PT rev (3m)-7.87%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)3.8%
EPS NY rev (1m)0%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)4.43%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.64 | ||
| Fwd PE | 23.61 | ||
| P/S | 12.81 | ||
| P/FCF | N/A | ||
| P/OCF | 62.38 | ||
| P/B | 37.34 | ||
| P/tB | 103.48 | ||
| EV/EBITDA | 29.28 |
EPS(TTM)16.15
EY2.24%
EPS(NY)30.53
Fwd EY4.24%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)11.56
OCFY1.6%
SpS56.27
BVpS19.31
TBVpS6.97
PEG (NY)0.58
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 75.52% | ||
| ROCE | 36.25% | ||
| ROIC | 29.63% | ||
| ROICexc | 31.43% | ||
| ROICexgc | 39.29% | ||
| OM | 42.13% | ||
| PM (TTM) | 25.91% | ||
| GM | 82.64% | ||
| 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 580.51% | ||
| Cap/Sales | 20.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 6.54 |
F-Score6
WACC9.68%
ROIC/WACC3.06
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)77.67%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%60.97%
EPS Next Y76.85%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
EPS Next 5Y30.3%
Revenue 1Y (TTM)36.83%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%37.64%
Revenue Next Year36.76%
Revenue Next 2Y27.21%
Revenue Next 3Y23.13%
Revenue Next 5Y17.76%
EBIT growth 1Y67.12%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year84.34%
EBIT Next 3Y42.93%
EBIT Next 5Y29.73%
FCF growth 1Y-101.56%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y75.24%
OCF growth 3Y6.69%
OCF growth 5Y12.76%