ELI LILLY & CO (1LLY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LLY - US5324571083 - Common Stock
923.5 EUR
+33.2 (+3.73%)
Taking everything into account, 1LLY scores 6 out of 10 in our fundamental rating. 1LLY was compared to 55 industry peers in the Pharmaceuticals industry. While 1LLY has a great profitability rating, there are some minor concerns on its financial health. 1LLY is valued quite expensively, but it does show have an excellent growth rating. With these ratings, 1LLY could be worth investigating further for growth investing!.
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.
- In the past 5 years 1LLY has always been profitable.
- Each year in the past 5 years 1LLY had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 16.02%, 1LLY belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
- 1LLY has a Return On Equity of 77.38%. This is amongst the best in the industry. 1LLY outperforms 96.36% of its industry peers.
- 1LLY has a Return On Invested Capital of 28.84%. This is amongst the best in the industry. 1LLY outperforms 94.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1LLY is significantly above the industry average of 14.00%.
- The 3 year average ROIC (21.71%) for 1LLY 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
- 1LLY has a Profit Margin of 30.99%. This is amongst the best in the industry. 1LLY outperforms 96.36% of its industry peers.
- 1LLY's Profit Margin has declined in the last couple of years.
- 1LLY has a Operating Margin of 44.41%. This is amongst the best in the industry. 1LLY outperforms 96.36% of its industry peers.
- 1LLY's Operating Margin has improved in the last couple of years.
- 1LLY has a Gross Margin of 83.03%. This is amongst the best in the industry. 1LLY outperforms 87.27% of its industry peers.
- In the last couple of years the Gross Margin of 1LLY 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
- 1LLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for 1LLY remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, 1LLY has less shares outstanding
- Compared to 1 year ago, 1LLY has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.52 indicates that 1LLY is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.52, 1LLY belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
- 1LLY has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as 1LLY would need 6.60 years to pay back of all of its debts.
- 1LLY's Debt to FCF ratio of 6.60 is in line compared to the rest of the industry. 1LLY outperforms 43.64% of its industry peers.
- 1LLY has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
- 1LLY has a Debt to Equity ratio of 1.72. This is in the lower half of the industry: 1LLY underperforms 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.52 |
ROIC/WACC3.11
WACC9.26%
2.3 Liquidity
- 1LLY has a Current Ratio of 1.55. This is a normal value and indicates that 1LLY is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.55, 1LLY is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- 1LLY has a Quick Ratio of 1.24. This is a normal value and indicates that 1LLY is financially healthy and should not expect problems in meeting its short term obligations.
- 1LLY has a better Quick ratio (1.24) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
- 1LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.22%, which is quite impressive.
- The Earnings Per Share has been growing by 16.57% on average over the past years. This is quite good.
- The Revenue has grown by 45.41% in the past year. This is a very strong growth!
- 1LLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.08% yearly.
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
- The Earnings Per Share is expected to grow by 32.61% on average over the next years. This is a very strong growth
- 1LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.64% yearly.
EPS Next Y84.93%
EPS Next 2Y59.63%
EPS Next 3Y46.9%
EPS Next 5Y32.61%
Revenue Next Year41.38%
Revenue Next 2Y31.01%
Revenue Next 3Y26.06%
Revenue Next 5Y19.64%
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
- With a Price/Earnings ratio of 49.31, 1LLY can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of 1LLY indicates a slightly more expensive valuation: 1LLY is more expensive than 67.27% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of 1LLY to the average of the S&P500 Index (27.21), we can say 1LLY is valued expensively.
- Based on the Price/Forward Earnings ratio of 32.73, the valuation of 1LLY can be described as expensive.
- Based on the Price/Forward Earnings ratio, 1LLY is valued a bit more expensive than 69.09% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1LLY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.31 | ||
| Fwd PE | 32.73 |
4.2 Price Multiples
- 1LLY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1LLY is more expensive than 74.55% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1LLY is valued a bit more expensive than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.27 | ||
| EV/EBITDA | 37.39 |
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 46.90% in the coming years.
PEG (NY)0.58
PEG (5Y)2.98
EPS Next 2Y59.63%
EPS Next 3Y46.9%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.64%, 1LLY is not a good candidate for dividend investing.
- 1LLY's Dividend Yield is comparable with the industry average which is at 1.62.
- With a Dividend Yield of 0.64, 1LLY pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
- On average, the dividend of 1LLY grows each year by 15.59%, which is quite nice.
Dividend Growth(5Y)15.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 28.28% of the earnings are spent on dividend by 1LLY. This is a low number and sustainable payout ratio.
- 1LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.28%
EPS Next 2Y59.63%
EPS Next 3Y46.9%
ELI LILLY & CO / 1LLY.MI FAQ
What is the fundamental rating for 1LLY stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1LLY.MI.
What is the valuation status of ELI LILLY & CO (1LLY.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to ELI LILLY & CO (1LLY.MI). This can be considered as Overvalued.
Can you provide the profitability details for ELI LILLY & CO?
ELI LILLY & CO (1LLY.MI) has a profitability rating of 9 / 10.
What is the expected EPS growth for ELI LILLY & CO (1LLY.MI) stock?
The Earnings per Share (EPS) of ELI LILLY & CO (1LLY.MI) is expected to grow by 84.93% in the next year.
Is the dividend of ELI LILLY & CO sustainable?
The dividend rating of ELI LILLY & CO (1LLY.MI) is 4 / 10 and the dividend payout ratio is 28.28%.