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 52 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year LLY was profitable.
In the past year LLY had a positive cash flow from operations.
Each year in the past 5 years LLY has been profitable.
Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
LLY's Return On Assets of 12.42% is amongst the best of the industry. LLY outperforms 82.69% of its industry peers.
LLY has a Return On Equity of 70.45%. This is amongst the best in the industry. LLY outperforms 94.23% of its industry peers.
With an excellent Return On Invested Capital value of 27.17%, LLY belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LLY is significantly above the industry average of 14.50%.
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
LLY has a better Profit Margin (22.66%) than 80.77% of its industry peers.
LLY's Profit Margin has declined in the last couple of years.
The Operating Margin of LLY (40.25%) is better than 94.23% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
The Gross Margin of LLY (81.70%) is better than 78.85% of its industry peers.
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.
Compared to 5 years ago, LLY has less shares outstanding
Compared to 1 year ago, LLY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.61 indicates that LLY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.61, LLY belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Debt/Equity ratio of 2.19 is on the high side and indicates that LLY has dependencies on debt financing.
LLY has a worse Debt to Equity ratio (2.19) than 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.61 |
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.
Looking at the Current ratio, with a value of 1.37, LLY is in line with its industry, outperforming 53.85% of the companies in the same 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 63.46% 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.
LLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.57% yearly.
Looking at the last year, LLY shows a very strong growth in Revenue. The Revenue has grown by 36.38%.
LLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.08% yearly.
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
Based on estimates for the next years, LLY will show a very strong growth in Earnings Per Share. The EPS will grow by 30.28% on average per year.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 56.10 indicates a quite expensive valuation of LLY.
Based on the Price/Earnings ratio, LLY is valued a bit more expensive than 65.38% of the companies in the same industry.
LLY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.29.
Based on the Price/Forward Earnings ratio of 26.20, the valuation of LLY can be described as expensive.
LLY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LLY is more expensive than 65.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (21.74), we can say LLY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.1 | ||
| Fwd PE | 26.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LLY indicates a slightly more expensive valuation: LLY is more expensive than 73.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 35.47 |
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)0.83
PEG (5Y)3.39
EPS Next 2Y50.52%
EPS Next 3Y41.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, LLY is not a good candidate for dividend investing.
LLY's Dividend Yield is comparable with the industry average which is at 3.05.
With a Dividend Yield of 0.77, LLY pays less dividend than the S&P500 average, which is at 2.37.
| 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
LLY pays out 43.74% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.74%
EPS Next 2Y50.52%
EPS Next 3Y41.49%
FRA:LLY (7/8/2025, 10:00:07 AM)
658
+1.9 (+0.29%)
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 Cap623.61B
Analysts81.21
Price Target858.14 (30.42%)
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 | 56.1 | ||
| Fwd PE | 26.2 | ||
| P/S | 14.93 | ||
| P/FCF | N/A | ||
| P/OCF | 78.49 | ||
| P/B | 46.39 | ||
| P/tB | 183.66 | ||
| EV/EBITDA | 35.47 |
EPS(TTM)11.73
EY1.78%
EPS(NY)25.11
Fwd EY3.82%
FCF(TTM)-1.14
FCFYN/A
OCF(TTM)8.38
OCFY1.27%
SpS44.09
BVpS14.18
TBVpS3.58
PEG (NY)0.83
PEG (5Y)3.39
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 | 7.61 |
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%