ELI LILLY & CO (1LLY.MI) Stock Fundamental Analysis
BIT:1LLY - Euronext Milan - US5324571083 - Common Stock - Currency: EUR
1LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 industry peers in the Pharmaceuticals industry. While 1LLY has a great profitability rating, there are quite some concerns on its financial health. 1LLY is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
1LLY had positive earnings in the past year.
1LLY had a positive operating cash flow in the past year.
Each year in the past 5 years 1LLY has been profitable.
In the past 5 years 1LLY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.45%, 1LLY belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
1LLY's Return On Equity of 74.62% is amongst the best of the industry. 1LLY outperforms 98.08% of its industry peers.
With an excellent Return On Invested Capital value of 27.67%, 1LLY belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1LLY is significantly above the industry average of 13.62%.
The 3 year average ROIC (21.71%) for 1LLY is below the current ROIC(27.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | 74.62% | ||
| ROIC | 27.67% |
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
Looking at the Profit Margin, with a value of 23.51%, 1LLY belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
In the last couple of years the Profit Margin of 1LLY has declined.
1LLY's Operating Margin of 37.83% is amongst the best of the industry. 1LLY outperforms 94.23% of its industry peers.
In the last couple of years the Operating Margin of 1LLY has grown nicely.
1LLY has a Gross Margin of 81.31%. This is amongst the best in the industry. 1LLY outperforms 80.77% of its industry peers.
1LLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.83% | ||
| PM (TTM) | 23.51% | ||
| GM | 81.31% |
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 1LLY is creating value.
1LLY has about the same amout of shares outstanding than it did 1 year ago.
1LLY has less shares outstanding than it did 5 years ago.
1LLY has a worse debt/assets ratio than last year.
2.2 Solvency
1LLY has an Altman-Z score of 9.27. This indicates that 1LLY is financially healthy and has little risk of bankruptcy at the moment.
1LLY has a Altman-Z score of 9.27. This is amongst the best in the industry. 1LLY outperforms 98.08% of its industry peers.
The Debt to FCF ratio of 1LLY is 81.21, which is on the high side as it means it would take 1LLY, 81.21 years of fcf income to pay off all of its debts.
1LLY has a worse Debt to FCF ratio (81.21) than 65.38% of its industry peers.
A Debt/Equity ratio of 2.01 is on the high side and indicates that 1LLY has dependencies on debt financing.
With a Debt to Equity ratio value of 2.01, 1LLY is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 81.21 | ||
| Altman-Z | 9.27 |
ROIC/WACC2.89
WACC9.56%
2.3 Liquidity
1LLY has a Current Ratio of 1.15. This is a normal value and indicates that 1LLY is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1LLY (1.15) is worse than 75.00% of its industry peers.
A Quick Ratio of 0.89 indicates that 1LLY may have some problems paying its short term obligations.
1LLY has a Quick ratio (0.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
1LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.70%, which is quite impressive.
Measured over the past years, 1LLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.57% on average per year.
The Revenue has grown by 32.00% in the past year. This is a very strong growth!
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
EPS 1Y (TTM)105.7%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%113.65%
Revenue 1Y (TTM)32%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%44.68%
3.2 Future
1LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.57% yearly.
The Revenue is expected to grow by 17.14% on average over the next years. This is quite good.
EPS Next Y79.4%
EPS Next 2Y50.55%
EPS Next 3Y40.55%
EPS Next 5Y29.57%
Revenue Next Year31.45%
Revenue Next 2Y24.7%
Revenue Next 3Y21.92%
Revenue Next 5Y17.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 67.00 indicates a quite expensive valuation of 1LLY.
61.54% of the companies in the same industry are cheaper than 1LLY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. 1LLY is valued rather expensively when compared to this.
1LLY is valuated quite expensively with a Price/Forward Earnings ratio of 37.34.
63.46% of the companies in the same industry are cheaper than 1LLY, based on the Price/Forward Earnings ratio.
1LLY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67 | ||
| Fwd PE | 37.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1LLY is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1LLY indicates a slightly more expensive valuation: 1LLY is more expensive than 65.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1992.76 | ||
| EV/EBITDA | 45.5 |
4.3 Compensation for Growth
1LLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1LLY has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1LLY's earnings are expected to grow with 40.55% in the coming years.
PEG (NY)0.84
PEG (5Y)4.04
EPS Next 2Y50.55%
EPS Next 3Y40.55%
5. Dividend
5.1 Amount
1LLY has a yearly dividend return of 0.66%, which is pretty low.
1LLY's Dividend Yield is comparable with the industry average which is at 2.86.
With a Dividend Yield of 0.66, 1LLY pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
On average, the dividend of 1LLY grows each year by 15.60%, which is quite nice.
Dividend Growth(5Y)15.6%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
44.20% of the earnings are spent on dividend by 1LLY. This is a bit on the high side, but may be sustainable.
The dividend of 1LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.2%
EPS Next 2Y50.55%
EPS Next 3Y40.55%
BIT:1LLY (3/7/2025, 7:00:00 PM)
802
-49.1 (-5.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.27%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap760.43B
Analysts82.5
Price Target953.94 (18.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend4.55
Dividend Growth(5Y)15.6%
DP44.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.94%
Min EPS beat(2)-20.34%
Max EPS beat(2)6.45%
EPS beat(4)3
Avg EPS beat(4)9.86%
Min EPS beat(4)-20.34%
Max EPS beat(4)49.43%
EPS beat(8)6
Avg EPS beat(8)27.82%
EPS beat(12)9
Avg EPS beat(12)19.37%
EPS beat(16)10
Avg EPS beat(16)13.42%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-6.46%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)12.82%
Revenue beat(8)5
Avg Revenue beat(8)2.51%
Revenue beat(12)6
Avg Revenue beat(12)1.42%
Revenue beat(16)9
Avg Revenue beat(16)1.11%
PT rev (1m)0.92%
PT rev (3m)0.05%
EPS NQ rev (1m)-5.57%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)2.34%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)-1.81%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67 | ||
| Fwd PE | 37.34 | ||
| P/S | 18.33 | ||
| P/FCF | 1992.76 | ||
| P/OCF | 93.63 | ||
| P/B | 58.17 | ||
| P/tB | 366.04 | ||
| EV/EBITDA | 45.5 |
EPS(TTM)11.97
EY1.49%
EPS(NY)21.48
Fwd EY2.68%
FCF(TTM)0.4
FCFY0.05%
OCF(TTM)8.57
OCFY1.07%
SpS43.76
BVpS13.79
TBVpS2.19
PEG (NY)0.84
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | 74.62% | ||
| ROCE | 33.85% | ||
| ROIC | 27.67% | ||
| ROICexc | 29.69% | ||
| ROICexgc | 39.82% | ||
| OM | 37.83% | ||
| PM (TTM) | 23.51% | ||
| GM | 81.31% | ||
| FCFM | 0.92% |
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-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 81.21 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 475.69% | ||
| Cap/Sales | 18.66% | ||
| Interest Coverage | 29.51 | ||
| Cash Conversion | 46.89% | ||
| Profit Quality | 3.91% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 9.27 |
F-Score7
WACC9.56%
ROIC/WACC2.89
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)105.7%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%113.65%
EPS Next Y79.4%
EPS Next 2Y50.55%
EPS Next 3Y40.55%
EPS Next 5Y29.57%
Revenue 1Y (TTM)32%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%44.68%
Revenue Next Year31.45%
Revenue Next 2Y24.7%
Revenue Next 3Y21.92%
Revenue Next 5Y17.14%
EBIT growth 1Y65.03%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year89.66%
EBIT Next 3Y41.1%
EBIT Next 5Y28.51%
FCF growth 1Y113.14%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y107.96%
OCF growth 3Y6.69%
OCF growth 5Y12.76%