ELI LILLY & CO (1LLY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LLY - US5324571083 - Common Stock
851.6 EUR
-36.2 (-4.08%)
We assign a fundamental rating of 6 out of 10 to 1LLY. 1LLY was compared to 55 industry peers in the Pharmaceuticals industry. While 1LLY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1LLY is valued quite expensively, but it does show have an excellent growth rating. These ratings could make 1LLY a good candidate 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.
- In the past 5 years 1LLY has always been profitable.
- In the past 5 years 1LLY always reported a positive cash flow from operatings.
1.2 Ratios
- 1LLY's Return On Assets of 16.02% is amongst the best of the industry. 1LLY outperforms 92.73% of its industry peers.
- 1LLY's Return On Equity of 77.38% is amongst the best of the industry. 1LLY outperforms 98.18% of its industry peers.
- 1LLY has a better Return On Invested Capital (28.84%) than 96.36% 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 better Profit Margin (30.99%) than 98.18% of its industry peers.
- 1LLY's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1LLY (44.41%) is better than 98.18% of its industry peers.
- 1LLY's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1LLY (83.03%) is better than 89.09% of its industry peers.
- 1LLY's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LLY is creating value.
- 1LLY has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1LLY has been reduced compared to 5 years ago.
- The debt/assets ratio for 1LLY is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.12 indicates that 1LLY is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1LLY (8.12) is better than 92.73% of its industry peers.
- 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's Debt to FCF ratio of 6.60 is in line compared to the rest of the industry. 1LLY outperforms 45.45% 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's Debt to Equity ratio of 1.72 is on the low side compared to the rest of the industry. 1LLY is outperformed by 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.12 |
ROIC/WACC3.12
WACC9.25%
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.
- The Current ratio of 1LLY (1.55) is better than 67.27% of its industry peers.
- 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's Quick ratio of 1.24 is fine compared to the rest of the industry. 1LLY outperforms 76.36% 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.
- 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.
- Looking at the last year, 1LLY shows a very strong growth in Revenue. The Revenue has grown by 45.41%.
- 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
- 1LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.61% yearly.
- 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
- 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 46.38, 1LLY can be considered very expensive at the moment.
- 1LLY's Price/Earnings ratio is a bit more expensive when compared to the industry. 1LLY is more expensive than 65.45% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1LLY to the average of the S&P500 Index (28.60), we can say 1LLY is valued expensively.
- Based on the Price/Forward Earnings ratio of 30.78, the valuation of 1LLY can be described as expensive.
- Based on the Price/Forward Earnings ratio, 1LLY is valued a bit more expensive than the industry average as 67.27% of the companies are valued more cheaply.
- 1LLY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.38 | ||
| Fwd PE | 30.78 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1LLY is valued a bit more expensive than 72.73% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1LLY is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.77 | ||
| EV/EBITDA | 35.23 |
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)0.55
PEG (5Y)2.8
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 1.82.
| 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%.