ELI LILLY & CO (LLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LLY - US5324571083 - Common Stock
1097.65 USD
+12.46 (+1.15%)
We assign a fundamental rating of 7 out of 10 to LLY. LLY was compared to 191 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 priced too expensively while it is growing strongly. 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.
In the past year LLY had a positive cash flow from operations.
LLY had positive earnings in each of the past 5 years.
Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.02%, LLY belongs to the best of the industry, outperforming 95.81% of the companies in the same industry.
The Return On Equity of LLY (77.38%) is better than 99.48% of its industry peers.
With an excellent Return On Invested Capital value of 28.84%, LLY belongs to the best of the industry, outperforming 97.91% of the companies in the same industry.
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 has a better Profit Margin (30.99%) than 94.76% of its industry peers.
In the last couple of years the Profit Margin of LLY has declined.
LLY has a better Operating Margin (44.41%) than 98.43% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
The Gross Margin of LLY (83.03%) is better than 86.91% 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 | 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.
The number of shares outstanding for LLY remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LLY has less shares outstanding
LLY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.53 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY has a better Altman-Z score (8.53) than 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 has a Debt to FCF ratio of 6.60. This is amongst the best in 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.
LLY has a Debt to Equity ratio of 1.72. This is in the lower half of the industry: LLY underperforms 77.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.53 |
ROIC/WACC3.08
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LLY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.55, LLY is doing worse than 71.73% of the companies in the same industry.
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.
LLY's Quick ratio of 1.24 is on the low side compared to the rest of the industry. LLY is outperformed by 72.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.22% 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 45.41%.
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
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
Based on estimates for the next years, LLY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.53% on average per year.
Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 18.88% on average per year.
EPS Next Y84.97%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
EPS Next 5Y31.53%
Revenue Next Year41.27%
Revenue Next 2Y30.36%
Revenue Next 3Y25.76%
Revenue Next 5Y18.88%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 49.92 indicates a quite expensive valuation of LLY.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than 76.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of LLY to the average of the S&P500 Index (27.00), we can say LLY is valued expensively.
LLY is valuated quite expensively with a Price/Forward Earnings ratio of 33.46.
72.25% of the companies in the same industry are more expensive than LLY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, LLY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.92 | ||
| Fwd PE | 33.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit cheaper than 78.53% 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 | 161.22 | ||
| EV/EBITDA | 37.42 |
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.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 46.26% in the coming years.
PEG (NY)0.59
PEG (5Y)3.01
EPS Next 2Y58.86%
EPS Next 3Y46.26%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 0.42, LLY pays a better dividend. On top of this LLY pays more dividend than 90.05% of the companies listed in the same industry.
With a Dividend Yield of 0.64, LLY pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 15.59%!
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)15.59%
Div Incr Years10
Div Non Decr Years34
5.3 Sustainability
28.28% of the earnings are spent on dividend by LLY. This is a low number and sustainable payout ratio.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.28%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
NYSE:LLY (1/9/2026, 9:53:09 AM)
1097.65
+12.46 (+1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change0%
Ins Owners0.16%
Ins Owner Change-4.02%
Market Cap1.04T
Revenue(TTM)59.42B
Net Income(TTM)18.41B
Analysts80.54
Price Target1108.67 (1%)
Short Float %0.69%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)8.6%
PT rev (3m)22.6%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)0.02%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.92 | ||
| Fwd PE | 33.46 | ||
| P/S | 17.46 | ||
| P/FCF | 161.22 | ||
| P/OCF | 64.6 | ||
| P/B | 43.61 | ||
| P/tB | 90.64 | ||
| EV/EBITDA | 37.42 |
EPS(TTM)21.99
EY2%
EPS(NY)32.81
Fwd EY2.99%
FCF(TTM)6.81
FCFY0.62%
OCF(TTM)16.99
OCFY1.55%
SpS62.85
BVpS25.17
TBVpS12.11
PEG (NY)0.59
PEG (5Y)3.01
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 | 8.53 |
F-Score7
WACC9.36%
ROIC/WACC3.08
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 Y84.97%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
EPS Next 5Y31.53%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
Revenue Next Year41.27%
Revenue Next 2Y30.36%
Revenue Next 3Y25.76%
Revenue Next 5Y18.88%
EBIT growth 1Y82.81%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year101.98%
EBIT Next 3Y46.72%
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
Can you provide the ChartMill fundamental rating for ELI LILLY & CO?
ChartMill assigns a fundamental rating of 7 / 10 to LLY.
What is the valuation status of ELI LILLY & CO (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.
Can you provide the PE and PB ratios for LLY stock?
The Price/Earnings (PE) ratio for ELI LILLY & CO (LLY) is 49.92 and the Price/Book (PB) ratio is 43.61.
What is the earnings growth outlook for ELI LILLY & CO?
The Earnings per Share (EPS) of ELI LILLY & CO (LLY) is expected to grow by 84.97% in the next year.