ELI LILLY & CO (1LLY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LLY - US5324571083 - Common Stock
896.1 EUR
-27.4 (-2.97%)
1LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. 1LLY scores excellent on profitability, but there are some minor concerns on its financial health. 1LLY is valued quite expensive, but it does show an excellent growth. This makes 1LLY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year 1LLY was profitable.
- In the past year 1LLY had a positive cash flow from operations.
- 1LLY had positive earnings in each of the past 5 years.
- 1LLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of 1LLY (16.02%) is better than 90.91% of its industry peers.
- 1LLY's Return On Equity of 77.38% is amongst the best of the industry. 1LLY outperforms 96.36% of its industry peers.
- With an excellent Return On Invested Capital value of 28.84%, 1LLY belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
- 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
- With an excellent Profit Margin value of 30.99%, 1LLY belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
- 1LLY's Profit Margin has declined in the last couple of years.
- 1LLY's Operating Margin of 44.41% is amongst the best of 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 better Gross Margin (83.03%) than 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.
- The number of shares outstanding for 1LLY has been reduced compared to 5 years ago.
- 1LLY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.38 indicates that 1LLY is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.38, 1LLY belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
- The Debt to FCF ratio of 1LLY is 6.60, which is on the high side as it means it would take 1LLY, 6.60 years of fcf income to pay off all of its debts.
- 1LLY has a Debt to FCF ratio of 6.60. This is comparable to the rest of the industry: 1LLY outperforms 43.64% of its industry peers.
- A Debt/Equity ratio of 1.72 is on the high side and indicates that 1LLY has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.72, 1LLY is not doing good in the industry: 78.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.38 |
ROIC/WACC3.12
WACC9.24%
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.
- 1LLY has a Current ratio of 1.55. This is in the better half of the industry: 1LLY outperforms 65.45% of its industry peers.
- A Quick Ratio of 1.24 indicates that 1LLY should not have too much problems paying its short term obligations.
- The Quick ratio of 1LLY (1.24) is better than 74.55% 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.
- 1LLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.57% yearly.
- 1LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.41%.
- Measured over the past years, 1LLY shows a quite strong growth in Revenue. The Revenue has been growing by 15.08% on average per year.
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
- Based on estimates for the next years, 1LLY will show a quite strong growth in Revenue. The Revenue will grow by 19.64% on average per year.
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
- 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
- 1LLY is valuated quite expensively with a Price/Earnings ratio of 48.23.
- 67.27% 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 27.25. 1LLY is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 32.02, the valuation of 1LLY can be described as expensive.
- 69.09% 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 valuation a bit more expensive than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.23 | ||
| Fwd PE | 32.02 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1LLY indicates a slightly more expensive valuation: 1LLY is more expensive than 74.55% of the companies listed in the same industry.
- 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 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 155.78 | ||
| EV/EBITDA | 36.6 |
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.
- The excellent profitability rating of 1LLY 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)0.57
PEG (5Y)2.91
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.
- Compared to an average S&P500 Dividend Yield of 1.82, 1LLY's dividend is way lower than the S&P500 average.
| 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
- 1LLY pays out 28.28% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1LLY is growing, but earnings are growing more, so the dividend growth is 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%.