ELI LILLY & CO (LLY)
US5324571083 - Common Stock
LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 198 industry peers in the Pharmaceuticals industry. LLY has an excellent profitability rating, but there are some minor concerns on its financial health. LLY is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
LLY had positive earnings in the past year.
LLY had a positive operating cash flow in the past year.
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
The Return On Assets of LLY (9.60%) is better than 94.36% of its industry peers.
With an excellent Return On Equity value of 47.91%, LLY belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
LLY has a better Return On Invested Capital (21.48%) than 96.92% of its industry peers.
LLY had an Average Return On Invested Capital over the past 3 years of 20.29%. This is above the industry average of 16.31%.
The 3 year average ROIC (20.29%) for LLY is below the current ROIC(21.48%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 17.08%, LLY belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
LLY's Profit Margin has been stable in the last couple of years.
LLY has a Operating Margin of 31.58%. This is amongst the best in the industry. LLY outperforms 95.90% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
LLY has a Gross Margin of 80.16%. This is amongst the best in the industry. LLY outperforms 84.10% of its industry peers.
LLY's Gross Margin has been stable in the last couple of years.
| 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
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.
LLY has a worse debt/assets ratio than last year.
2.2 Solvency
LLY has an Altman-Z score of 10.22. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY has a Altman-Z score of 10.22. This is amongst the best in the industry. LLY outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that LLY has dependencies on debt financing.
LLY has a Debt to Equity ratio of 1.92. This is in the lower half of the industry: LLY underperforms 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.22 |
ROIC/WACC2.41
WACC8.93%
2.3 Liquidity
LLY has a Current Ratio of 1.35. 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 worse Current ratio (1.35) than 77.44% of its industry peers.
LLY has a Quick Ratio of 1.03. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.03, LLY is not doing good in the industry: 78.97% of the companies in the same industry are doing better.
| 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 growth Q2Q59.26%
Revenue 1Y (TTM)29.76%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Revenue growth Q2Q25.98%
3.2 Future
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.99% yearly.
Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 18.48% on average per year.
EPS Next Y99.22%
EPS Next 2Y70.81%
EPS Next 3Y57.29%
EPS Next 5Y40.99%
Revenue Next Year22.92%
Revenue Next 2Y23.93%
Revenue Next 3Y22.03%
Revenue Next 5Y18.48%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 106.26, LLY can be considered very expensive at the moment.
LLY's Price/Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.11. LLY is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 41.95, the valuation of LLY can be described as expensive.
77.44% 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 20.39, LLY is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.26 | ||
| Fwd PE | 41.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 75.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 59.09 |
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.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 57.29% in the coming years.
PEG (NY)1.07
PEG (5Y)40.94
EPS Next 2Y70.81%
EPS Next 3Y57.29%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 4.19, LLY pays a better dividend. On top of this LLY pays more dividend than 90.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 Years19
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 2Y70.81%
EPS Next 3Y57.29%
ELI LILLY & CO
NYSE:LLY (5/8/2024, 8:54:06 AM)
773.555
-4.22 (-0.54%)
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 Cap735.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.26 | ||
| Fwd PE | 41.95 | ||
| 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)1.07
PEG (5Y)40.94
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)
Growth
EPS 1Y (TTM)4.9%
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)29.76%
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