ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
FRA:LLY - Deutsche Boerse Ag - US5324571083 - Common Stock - Currency: EUR
LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Pharmaceuticals industry. LLY has an excellent profitability rating, but there are some minor concerns on its financial health. LLY is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year LLY was profitable.
LLY had a positive operating cash flow in the past year.
In the past 5 years LLY has always been profitable.
In the past 5 years LLY always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.42%, LLY belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
With an excellent Return On Equity value of 70.45%, LLY belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 27.17%, LLY belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LLY is significantly above the industry average of 14.75%.
The 3 year average ROIC (21.71%) for LLY is below the current ROIC(27.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.42% | ||
| ROE | 70.45% | ||
| ROIC | 27.17% |
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 22.66%, LLY is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LLY has declined.
With an excellent Operating Margin value of 40.25%, LLY belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
LLY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.70%, LLY is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
In the last couple of years the Gross Margin of LLY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.25% | ||
| PM (TTM) | 22.66% | ||
| GM | 81.7% |
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
LLY 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 LLY remains at a similar level compared to 1 year ago.
The number of shares outstanding for LLY has been reduced compared to 5 years ago.
The debt/assets ratio for LLY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.70 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY's Altman-Z score of 7.70 is amongst the best of the industry. LLY outperforms 94.00% of its industry peers.
A Debt/Equity ratio of 2.19 is on the high side and indicates that LLY has dependencies on debt financing.
The Debt to Equity ratio of LLY (2.19) is worse than 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.7 |
ROIC/WACC2.82
WACC9.63%
2.3 Liquidity
LLY has a Current Ratio of 1.37. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
LLY has a Current ratio (1.37) which is comparable to the rest of the industry.
LLY has a Quick Ratio of 1.06. 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 1.06, LLY is doing good in the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.01%, which is quite impressive.
The Earnings Per Share has been growing by 16.57% on average over the past years. This is quite good.
Looking at the last year, LLY shows a very strong growth in Revenue. The Revenue has grown by 36.38%.
Measured over the past years, LLY shows a quite strong growth in Revenue. The Revenue has been growing by 15.08% on average per year.
EPS 1Y (TTM)89.01%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%29.46%
Revenue 1Y (TTM)36.38%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%45.17%
3.2 Future
The Earnings Per Share is expected to grow by 30.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.46% on average over the next years. This is quite good.
EPS Next Y67.5%
EPS Next 2Y50.52%
EPS Next 3Y41.49%
EPS Next 5Y30.28%
Revenue Next Year31.57%
Revenue Next 2Y25.34%
Revenue Next 3Y22.33%
Revenue Next 5Y17.46%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 56.79 indicates a quite expensive valuation of LLY.
LLY's Price/Earnings ratio is a bit more expensive when compared to the industry. LLY is more expensive than 64.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of LLY to the average of the S&P500 Index (27.45), we can say LLY is valued expensively.
A Price/Forward Earnings ratio of 26.52 indicates a quite expensive valuation of LLY.
64.00% of the companies in the same industry are cheaper than LLY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. LLY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.79 | ||
| Fwd PE | 26.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit more expensive than the industry average as 72.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 35.99 |
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.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 41.49% in the coming years.
PEG (NY)0.84
PEG (5Y)3.43
EPS Next 2Y50.52%
EPS Next 3Y41.49%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.77%, which is pretty low.
LLY's Dividend Yield is comparable with the industry average which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.38, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of LLY grows each year by 15.60%, which is quite nice.
Dividend Growth(5Y)15.6%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
43.74% of the earnings are spent on dividend by LLY. This is a bit on the high side, but may be sustainable.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.74%
EPS Next 2Y50.52%
EPS Next 3Y41.49%
FRA:LLY (7/4/2025, 7:00:00 PM)
663.9
+3.2 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.95%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap629.20B
Analysts81.21
Price Target858.14 (29.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend4.19
Dividend Growth(5Y)15.6%
DP43.74%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.92%
Min EPS beat(2)6.45%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)11.23%
Min EPS beat(4)-20.34%
Max EPS beat(4)49.43%
EPS beat(8)7
Avg EPS beat(8)29.89%
EPS beat(12)9
Avg EPS beat(12)18.64%
EPS beat(16)11
Avg EPS beat(16)14.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)12.82%
Revenue beat(8)4
Avg Revenue beat(8)2.39%
Revenue beat(12)5
Avg Revenue beat(12)0.98%
Revenue beat(16)9
Avg Revenue beat(16)1.3%
PT rev (1m)-3.72%
PT rev (3m)-9.59%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-6.97%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.79 | ||
| Fwd PE | 26.52 | ||
| P/S | 15.11 | ||
| P/FCF | N/A | ||
| P/OCF | 79.46 | ||
| P/B | 46.96 | ||
| P/tB | 185.93 | ||
| EV/EBITDA | 35.99 |
EPS(TTM)11.69
EY1.76%
EPS(NY)25.03
Fwd EY3.77%
FCF(TTM)-1.14
FCFYN/A
OCF(TTM)8.35
OCFY1.26%
SpS43.94
BVpS14.14
TBVpS3.57
PEG (NY)0.84
PEG (5Y)3.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.42% | ||
| ROE | 70.45% | ||
| ROCE | 33.25% | ||
| ROIC | 27.17% | ||
| ROICexc | 28.73% | ||
| ROICexgc | 36.37% | ||
| OM | 40.25% | ||
| PM (TTM) | 22.66% | ||
| GM | 81.7% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y1.59%
ROICexcg growth 5Y4.02%
ROICexc growth 3Y9.55%
ROICexc growth 5Y8.81%
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-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 578.92% | ||
| Cap/Sales | 21.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.23% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 7.7 |
F-Score6
WACC9.63%
ROIC/WACC2.82
Cap/Depr(3y)374.28%
Cap/Depr(5y)279.43%
Cap/Sales(3y)16.34%
Cap/Sales(5y)12.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)89.01%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%29.46%
EPS Next Y67.5%
EPS Next 2Y50.52%
EPS Next 3Y41.49%
EPS Next 5Y30.28%
Revenue 1Y (TTM)36.38%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%45.17%
Revenue Next Year31.57%
Revenue Next 2Y25.34%
Revenue Next 3Y22.33%
Revenue Next 5Y17.46%
EBIT growth 1Y73.83%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year83.18%
EBIT Next 3Y42.52%
EBIT Next 5Y29.3%
FCF growth 1Y-133.54%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y36.68%
OCF growth 3Y6.69%
OCF growth 5Y12.76%