ELI LILLY & CO (LLY)
US5324571083 - Common Stock
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 196 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, 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!
1. Profitability
1.1 Basic Checks
In the past year LLY was profitable.
LLY had a positive operating cash flow in the past year.
In the past 5 years LLY has always been profitable.
In the past 5 years LLY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.60%, LLY belongs to the top of the industry, outperforming 92.27% of the companies in the same industry.
LLY has a Return On Equity of 47.91%. This is amongst the best in the industry. LLY outperforms 95.88% of its industry peers.
With an excellent Return On Invested Capital value of 21.48%, LLY belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LLY is above the industry average of 17.97%.
The last Return On Invested Capital (21.48%) for LLY is above the 3 year average (20.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 47.91% | ||
| ROIC | 21.48% |
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
With an excellent Profit Margin value of 17.08%, LLY belongs to the best of the industry, outperforming 91.24% of the companies in the same industry.
In the last couple of years the Profit Margin of LLY has remained more or less at the same level.
With an excellent Operating Margin value of 31.58%, LLY belongs to the best of the industry, outperforming 94.85% of the companies in the same industry.
In the last couple of years the Operating Margin of LLY has grown nicely.
With an excellent Gross Margin value of 80.16%, LLY belongs to the best of the industry, outperforming 84.54% 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 | 31.58% | ||
| PM (TTM) | 17.08% | ||
| GM | 80.16% |
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%
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.
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.
LLY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.70 indicates that LLY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.70, LLY belongs to the top of the industry, outperforming 84.54% of the companies in the same industry.
LLY has a Debt/Equity ratio of 1.92. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.92, LLY is doing worse than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.7 |
ROIC/WACC2.36
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LLY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, LLY is doing worse than 78.35% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that LLY should not have too much problems paying its short term obligations.
The Quick ratio of LLY (1.03) is worse than 79.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
LLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.90%.
LLY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.76%.
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)4.9%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS Q2Q%59.26%
Revenue 1Y (TTM)29.76%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Sales Q2Q%25.98%
3.2 Future
The Earnings Per Share is expected to grow by 41.77% on average over the next years. This is a very strong growth
LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.03% yearly.
EPS Next Y120.09%
EPS Next 2Y75.54%
EPS Next 3Y59.48%
EPS Next 5Y41.77%
Revenue Next Year27.89%
Revenue Next 2Y25.6%
Revenue Next 3Y23.24%
Revenue Next 5Y19.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 110.52, the valuation of LLY can be described as expensive.
LLY's Price/Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 77.84% of the companies in the same industry.
When comparing the Price/Earnings ratio of LLY to the average of the S&P500 Index (24.29), we can say LLY is valued expensively.
LLY is valuated quite expensively with a Price/Forward Earnings ratio of 41.31.
Based on the Price/Forward Earnings ratio, LLY is valued a bit cheaper than 74.23% of the companies in the same industry.
LLY is valuated expensively when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.52 | ||
| Fwd PE | 41.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit cheaper than the industry average as 75.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 62.27 |
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 59.48% in the coming years.
PEG (NY)0.92
PEG (5Y)42.58
EPS Next 2Y75.54%
EPS Next 3Y59.48%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.61%, which is pretty low.
LLY's Dividend Yield is rather good when compared to the industry average which is at 3.98. LLY pays more dividend than 90.21% of the companies in the same industry.
With a Dividend Yield of 0.61, LLY pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 14.87%!
LLY has paid a dividend for at least 10 years, which is a reliable track record.
LLY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.87%
Div Incr Years9
Div Non Decr Years33
5.3 Sustainability
LLY pays out 68.77% 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.
DP68.77%
EPS Next 2Y75.54%
EPS Next 3Y59.48%
ELI LILLY & CO
NYSE:LLY (7/26/2024, 4:05:00 PM)
After market: 804.15 -0.47 (-0.06%)804.62
-16.57 (-2.02%)
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 Cap764.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.52 | ||
| Fwd PE | 41.31 | ||
| 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)0.92
PEG (5Y)42.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 47.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.58% | ||
| PM (TTM) | 17.08% | ||
| GM | 80.16% | ||
| 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.03 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)4.9%
EPS 3Y-7.29%
EPS 5Y
EPS Q2Q%
EPS Next Y120.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.76%
Revenue growth 3Y11.62%
Revenue growth 5Y
Sales 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