ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LLY - US5324571083 - Common Stock
926.6 EUR
-20.7 (-2.19%)
We assign a fundamental rating of 6 out of 10 to LLY. LLY was compared to 55 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, but there are some minor concerns on its financial health. LLY is valued quite expensively, but it does show have an excellent growth rating. These ratings would make LLY suitable for growth investing!
1. Profitability
1.1 Basic Checks
LLY had positive earnings in the past year.
In the past year LLY had a positive cash flow from operations.
In the past 5 years LLY has always been profitable.
Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
LLY has a better Return On Assets (16.02%) than 90.91% of its industry peers.
The Return On Equity of LLY (77.38%) is better than 98.18% of its industry peers.
With an excellent Return On Invested Capital value of 28.84%, LLY belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
LLY had an Average Return On Invested Capital over the past 3 years of 21.71%. This is significantly above the industry average of 14.90%.
The last Return On Invested Capital (28.84%) for LLY is above the 3 year average (21.71%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 30.99%, LLY belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
In the last couple of years the Profit Margin of LLY has declined.
LLY has a Operating Margin of 44.41%. This is amongst the best in the industry. LLY outperforms 98.18% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
With an excellent Gross Margin value of 83.03%, LLY belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
LLY'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LLY is creating value.
Compared to 1 year ago, LLY has about the same amount of shares outstanding.
LLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LLY has a worse debt to assets ratio.
2.2 Solvency
LLY has an Altman-Z score of 8.61. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY has a better Altman-Z score (8.61) than 94.55% of its industry peers.
LLY has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as LLY would need 6.60 years to pay back of all of its debts.
LLY has a Debt to FCF ratio of 6.60. This is in the lower half of the industry: LLY underperforms 61.82% of its industry peers.
A Debt/Equity ratio of 1.72 is on the high side and indicates that LLY has dependencies on debt financing.
LLY has a worse Debt to Equity ratio (1.72) than 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.61 |
ROIC/WACC3.29
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a Current ratio of 1.55. This is in the better half of the industry: LLY outperforms 63.64% of its industry peers.
LLY has a Quick Ratio of 1.24. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.24, LLY is doing good in the industry, outperforming 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
LLY 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!
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
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
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.75% yearly.
Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 18.43% on average per year.
EPS Next Y80.9%
EPS Next 2Y54.64%
EPS Next 3Y42.29%
EPS Next 5Y30.75%
Revenue Next Year38.67%
Revenue Next 2Y28.28%
Revenue Next 3Y23.95%
Revenue Next 5Y18.43%
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
With a Price/Earnings ratio of 48.82, LLY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, LLY is valued a bit more expensive than 61.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. LLY is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 34.53, the valuation of LLY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LLY indicates a slightly more expensive valuation: LLY is more expensive than 63.64% of the companies listed in the same industry.
LLY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.82 | ||
| Fwd PE | 34.53 |
4.2 Price Multiples
LLY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LLY is more expensive than 69.09% of the companies in the same industry.
67.27% of the companies in the same industry are cheaper than LLY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 157.86 | ||
| EV/EBITDA | 37.87 |
4.3 Compensation for Growth
LLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LLY has an outstanding profitability rating, which may justify a higher PE ratio.
LLY's earnings are expected to grow with 42.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)2.95
EPS Next 2Y54.64%
EPS Next 3Y42.29%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.58%, which is pretty low.
LLY's Dividend Yield is comparable with the industry average which is at 3.00.
With a Dividend Yield of 0.58, LLY pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
On average, the dividend of LLY grows each year by 15.59%, which is quite nice.
Dividend Growth(5Y)15.59%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
28.28% of the earnings are spent on dividend by LLY. This is a low number and sustainable payout ratio.
The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.28%
EPS Next 2Y54.64%
EPS Next 3Y42.29%
FRA:LLY (11/28/2025, 7:00:00 PM)
926.6
-20.7 (-2.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.75%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap876.99B
Revenue(TTM)59.42B
Net Income(TTM)18.41B
Analysts80
Price Target880.84 (-4.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend4.28
Dividend Growth(5Y)15.59%
DP28.28%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.28%
Min EPS beat(2)14.51%
Max EPS beat(2)22.05%
EPS beat(4)4
Avg EPS beat(4)13.1%
Min EPS beat(4)6.45%
Max EPS beat(4)22.05%
EPS beat(8)7
Avg EPS beat(8)12.06%
EPS beat(12)10
Avg EPS beat(12)23.73%
EPS beat(16)13
Avg EPS beat(16)17.41%
Revenue beat(2)2
Avg Revenue beat(2)6.77%
Min Revenue beat(2)4.72%
Max Revenue beat(2)8.81%
Revenue beat(4)2
Avg Revenue beat(4)2.95%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)8.81%
Revenue beat(8)4
Avg Revenue beat(8)2.39%
Revenue beat(12)7
Avg Revenue beat(12)2.64%
Revenue beat(16)9
Avg Revenue beat(16)2.04%
PT rev (1m)14.66%
PT rev (3m)14.89%
EPS NQ rev (1m)1.97%
EPS NQ rev (3m)2.68%
EPS NY rev (1m)3.7%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.82 | ||
| Fwd PE | 34.53 | ||
| P/S | 17.1 | ||
| P/FCF | 157.86 | ||
| P/OCF | 63.26 | ||
| P/B | 42.7 | ||
| P/tB | 88.75 | ||
| EV/EBITDA | 37.87 |
EPS(TTM)18.98
EY2.05%
EPS(NY)26.83
Fwd EY2.9%
FCF(TTM)5.87
FCFY0.63%
OCF(TTM)14.65
OCFY1.58%
SpS54.19
BVpS21.7
TBVpS10.44
PEG (NY)0.6
PEG (5Y)2.95
Graham Number96.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 77.38% | ||
| ROCE | 35.28% | ||
| ROIC | 28.84% | ||
| ROICexc | 33.25% | ||
| ROICexgc | 41.06% | ||
| OM | 44.41% | ||
| PM (TTM) | 30.99% | ||
| GM | 83.03% | ||
| FCFM | 10.83% |
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%
ROICexgc growth 3Y1.59%
ROICexgc growth 5Y4.02%
ROICexc growth 3Y9.55%
ROICexc growth 5Y8.82%
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 507.66% | ||
| Cap/Sales | 16.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.78% | ||
| Profit Quality | 34.96% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 8.61 |
F-Score7
WACC8.76%
ROIC/WACC3.29
Cap/Depr(3y)385.26%
Cap/Depr(5y)286.02%
Cap/Sales(3y)16.93%
Cap/Sales(5y)13.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)116.22%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%494.92%
EPS Next Y80.9%
EPS Next 2Y54.64%
EPS Next 3Y42.29%
EPS Next 5Y30.75%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
Revenue Next Year38.67%
Revenue Next 2Y28.28%
Revenue Next 3Y23.95%
Revenue Next 5Y18.43%
EBIT growth 1Y82.81%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year93.86%
EBIT Next 3Y42.49%
EBIT Next 5Y30.03%
FCF growth 1Y4003.21%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y158.46%
OCF growth 3Y6.69%
OCF growth 5Y12.76%
ELI LILLY & CO / LLY.DE FAQ
What is the fundamental rating for LLY stock?
ChartMill assigns a fundamental rating of 6 / 10 to LLY.DE.
What is the valuation status for LLY stock?
ChartMill assigns a valuation rating of 3 / 10 to ELI LILLY & CO (LLY.DE). This can be considered as Overvalued.
What is the profitability of LLY stock?
ELI LILLY & CO (LLY.DE) has a profitability rating of 9 / 10.
What is the financial health of ELI LILLY & CO (LLY.DE) stock?
The financial health rating of ELI LILLY & CO (LLY.DE) is 5 / 10.
What is the expected EPS growth for ELI LILLY & CO (LLY.DE) stock?
The Earnings per Share (EPS) of ELI LILLY & CO (LLY.DE) is expected to grow by 80.9% in the next year.