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ELI LILLY & CO (1LLY.MI) Stock Fundamental Analysis

BIT:1LLY - Borsa Italiana Milan - US5324571083 - Common Stock - Currency: EUR

781.6  -8.3 (-1.05%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to 1LLY. 1LLY was compared to 52 industry peers in the Pharmaceuticals industry. While 1LLY belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1LLY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

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9

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.
Each year in the past 5 years 1LLY has been profitable.
1LLY had a positive operating cash flow in each of the past 5 years.
1LLY.MI Yearly Net Income VS EBIT VS OCF VS FCF1LLY.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B 8B 10B

1.2 Ratios

With an excellent Return On Assets value of 11.07%, 1LLY belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
1LLY's Return On Equity of 58.78% is amongst the best of the industry. 1LLY outperforms 95.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.33%, 1LLY belongs to the top of the industry, outperforming 95.83% 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 12.45%.
The last Return On Invested Capital (24.33%) for 1LLY is above the 3 year average (20.29%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.07%
ROE 58.78%
ROIC 24.33%
ROA(3y)10.75%
ROA(5y)13.34%
ROE(3y)56.48%
ROE(5y)119.66%
ROIC(3y)20.29%
ROIC(5y)19.04%
1LLY.MI Yearly ROA, ROE, ROIC1LLY.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 200 300

1.3 Margins

1LLY has a Profit Margin of 20.48%. This is amongst the best in the industry. 1LLY outperforms 89.58% of its industry peers.
1LLY's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1LLY (35.33%) is better than 91.67% of its industry peers.
In the last couple of years the Operating Margin of 1LLY has grown nicely.
The Gross Margin of 1LLY (80.91%) is better than 79.17% 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 RankSector Rank
OM 35.33%
PM (TTM) 20.48%
GM 80.91%
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%
1LLY.MI Yearly Profit, Operating, Gross Margins1LLY.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LLY is creating value.
Compared to 1 year ago, 1LLY has about the same amount of shares outstanding.
The number of shares outstanding for 1LLY has been reduced compared to 5 years ago.
Compared to 1 year ago, 1LLY has a worse debt to assets ratio.
1LLY.MI Yearly Shares Outstanding1LLY.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
1LLY.MI Yearly Total Debt VS Total Assets1LLY.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

1LLY has an Altman-Z score of 9.03. This indicates that 1LLY is financially healthy and has little risk of bankruptcy at the moment.
1LLY has a better Altman-Z score (9.03) than 97.92% of its industry peers.
1LLY has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.04, 1LLY is doing worse than 83.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.04
Debt/FCF N/A
Altman-Z 9.03
ROIC/WACC2.57
WACC9.47%
1LLY.MI Yearly LT Debt VS Equity VS FCF1LLY.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.27 indicates that 1LLY should not have too much problems paying its short term obligations.
1LLY's Current ratio of 1.27 is on the low side compared to the rest of the industry. 1LLY is outperformed by 70.83% of its industry peers.
A Quick Ratio of 0.97 indicates that 1LLY may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, 1LLY perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 0.97
1LLY.MI Yearly Current Assets VS Current Liabilites1LLY.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

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9

3. Growth

3.1 Past

1LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.79%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.60% on average over the past years.
The Revenue has grown by 27.41% in the past year. This is a very strong growth!
Measured over the past years, 1LLY shows a quite strong growth in Revenue. The Revenue has been growing by 9.69% on average per year.
EPS 1Y (TTM)71.79%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS Q2Q%1080%
Revenue 1Y (TTM)27.41%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Sales Q2Q%20.43%

3.2 Future

The Earnings Per Share is expected to grow by 45.92% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1LLY will show a very strong growth in Revenue. The Revenue will grow by 21.75% on average per year.
EPS Next Y109.18%
EPS Next 2Y89.89%
EPS Next 3Y67.58%
EPS Next 5Y45.92%
Revenue Next Year34.67%
Revenue Next 2Y31.78%
Revenue Next 3Y27.26%
Revenue Next 5Y21.75%

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.
1LLY.MI Yearly Revenue VS Estimates1LLY.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
1LLY.MI Yearly EPS VS Estimates1LLY.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

1LLY is valuated quite expensively with a Price/Earnings ratio of 79.43.
Based on the Price/Earnings ratio, 1LLY is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
1LLY is valuated expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 35.45, 1LLY can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, 1LLY is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of 1LLY to the average of the S&P500 Index (92.74), we can say 1LLY is valued rather cheaply.
Industry RankSector Rank
PE 79.43
Fwd PE 35.45
1LLY.MI Price Earnings VS Forward Price Earnings1LLY.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 1LLY is valued a bit more expensive than 64.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 49.32
1LLY.MI Per share data1LLY.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

The 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.
1LLY's earnings are expected to grow with 67.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)30.6
EPS Next 2Y89.89%
EPS Next 3Y67.58%

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4

5. Dividend

5.1 Amount

1LLY has a yearly dividend return of 0.73%, which is pretty low.
1LLY's Dividend Yield is comparable with the industry average which is at 2.69.
With a Dividend Yield of 0.73, 1LLY pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 0.73%

5.2 History

On average, the dividend of 1LLY grows each year by 14.87%, which is quite nice.
Dividend Growth(5Y)14.87%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

54.12% 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.
DP54.12%
EPS Next 2Y89.89%
EPS Next 3Y67.58%
1LLY.MI Yearly Income VS Free CF VS Dividend1LLY.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B 8B
1LLY.MI Dividend Payout.1LLY.MI Dividend Payout, showing the Payout Ratio.1LLY.MI Dividend Payout.PayoutRetained Earnings

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ELI LILLY & CO

BIT:1LLY (2/4/2025, 7:00:00 PM)

781.6

-8.3 (-1.05%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-06 2025-02-06/bmo
Inst Owners83.57%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap741.99B
Analysts81.76
Price Target945.24 (20.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.73%
Yearly Dividend4.28
Dividend Growth(5Y)14.87%
DP54.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.55%
Min EPS beat(2)-20.34%
Max EPS beat(2)49.43%
EPS beat(4)3
Avg EPS beat(4)11.03%
Min EPS beat(4)-20.34%
Max EPS beat(4)49.43%
EPS beat(8)6
Avg EPS beat(8)29.04%
EPS beat(12)9
Avg EPS beat(12)18.85%
EPS beat(16)10
Avg EPS beat(16)14%
Revenue beat(2)1
Avg Revenue beat(2)3.18%
Min Revenue beat(2)-6.46%
Max Revenue beat(2)12.82%
Revenue beat(4)2
Avg Revenue beat(4)1.83%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)12.82%
Revenue beat(8)5
Avg Revenue beat(8)2.49%
Revenue beat(12)7
Avg Revenue beat(12)1.73%
Revenue beat(16)10
Avg Revenue beat(16)1.25%
PT rev (1m)-6.1%
PT rev (3m)-1.01%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)16.51%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-20.25%
Revenue NQ rev (1m)-2.46%
Revenue NQ rev (3m)6.38%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-2.02%
Valuation
Industry RankSector Rank
PE 79.43
Fwd PE 35.45
P/S 18.77
P/FCF N/A
P/OCF 127.13
P/B 53.85
P/tB 396.45
EV/EBITDA 49.32
EPS(TTM)9.84
EY1.26%
EPS(NY)22.05
Fwd EY2.82%
FCF(TTM)-2.32
FCFYN/A
OCF(TTM)6.15
OCFY0.79%
SpS41.65
BVpS14.51
TBVpS1.97
PEG (NY)0.73
PEG (5Y)30.6
Profitability
Industry RankSector Rank
ROA 11.07%
ROE 58.78%
ROCE 28.34%
ROIC 24.33%
ROICexc 26.14%
ROICexgc 35.3%
OM 35.33%
PM (TTM) 20.48%
GM 80.91%
FCFM N/A
ROA(3y)10.75%
ROA(5y)13.34%
ROE(3y)56.48%
ROE(5y)119.66%
ROIC(3y)20.29%
ROIC(5y)19.04%
ROICexc(3y)22.12%
ROICexc(5y)20.87%
ROICexgc(3y)33.97%
ROICexgc(5y)32.6%
ROCE(3y)25.36%
ROCE(5y)23.44%
ROICexcg growth 3Y1.05%
ROICexcg growth 5Y7.54%
ROICexc growth 3Y4.74%
ROICexc growth 5Y2.31%
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%
F-Score6
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 2.04
Debt/FCF N/A
Debt/EBITDA 1.8
Cap/Depr 497.6%
Cap/Sales 20.33%
Interest Coverage 250
Cash Conversion 37.45%
Profit Quality N/A
Current Ratio 1.27
Quick Ratio 0.97
Altman-Z 9.03
F-Score6
WACC9.47%
ROIC/WACC2.57
Cap/Depr(3y)256.06%
Cap/Depr(5y)206.25%
Cap/Sales(3y)12.33%
Cap/Sales(5y)10.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.79%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS Q2Q%1080%
EPS Next Y109.18%
EPS Next 2Y89.89%
EPS Next 3Y67.58%
EPS Next 5Y45.92%
Revenue 1Y (TTM)27.41%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Sales Q2Q%20.43%
Revenue Next Year34.67%
Revenue Next 2Y31.78%
Revenue Next 3Y27.26%
Revenue Next 5Y21.75%
EBIT growth 1Y54.2%
EBIT growth 3Y14.66%
EBIT growth 5Y12.28%
EBIT Next Year144.43%
EBIT Next 3Y71.21%
EBIT Next 5Y46.58%
FCF growth 1Y-142.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.34%
OCF growth 3Y-13.27%
OCF growth 5Y-5.15%