ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LLY - US5324571083 - Common Stock
851.6 EUR
-35.6 (-4.01%)
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 55 industry peers in the Pharmaceuticals industry. While LLY has a great profitability rating, there are some minor concerns on its financial health. LLY shows excellent growth, but is valued quite expensive already. This makes LLY very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year LLY was profitable.
- LLY had a positive operating cash flow in the past year.
- LLY had positive earnings in each of the past 5 years.
- Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of LLY (16.02%) is better than 92.73% of its industry peers.
- With an excellent Return On Equity value of 77.38%, LLY belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 28.84%, LLY belongs to the top 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 14.00%.
- 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
- LLY's Profit Margin of 30.99% is amongst the best of the industry. LLY outperforms 98.18% of its industry peers.
- 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.
- LLY's Operating Margin has improved in the last couple of years.
- LLY's Gross Margin of 83.03% is amongst the best of the industry. LLY outperforms 89.09% 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 | 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 8.36. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.36, LLY belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
- The Debt to FCF ratio of LLY is 6.60, which is on the high side as it means it would take LLY, 6.60 years of fcf income to pay off all of its debts.
- LLY has a Debt to FCF ratio (6.60) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.72 is on the high side and indicates that LLY has dependencies on debt financing.
- The Debt to Equity ratio of LLY (1.72) is worse than 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.36 |
ROIC/WACC3.11
WACC9.27%
2.3 Liquidity
- LLY has a Current Ratio of 1.55. 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 better Current ratio (1.55) than 67.27% of its industry peers.
- A Quick Ratio of 1.24 indicates that LLY should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.24, LLY is in the better half of the industry, outperforming 76.36% 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.
- LLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.57% yearly.
- The Revenue has grown by 45.41% in the past year. This is a very strong growth!
- 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)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 32.61% yearly.
- LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.64% yearly.
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.
- 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
- A Price/Earnings ratio of 46.21 indicates a quite expensive valuation of LLY.
- 65.45% of the companies in the same industry are cheaper than LLY, based on the Price/Earnings ratio.
- LLY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.82.
- With a Price/Forward Earnings ratio of 30.66, LLY can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, LLY is valued a bit more expensive than the industry average as 67.27% of the companies are valued more cheaply.
- LLY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.21 | ||
| Fwd PE | 30.66 |
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 72.73% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LLY indicates a slightly more expensive valuation: LLY is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.21 | ||
| EV/EBITDA | 36.52 |
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.
- The excellent profitability rating of LLY may justify a higher PE ratio.
- LLY's earnings are expected to grow with 46.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)2.79
EPS Next 2Y59.63%
EPS Next 3Y46.9%
5. Dividend
5.1 Amount
- LLY has a yearly dividend return of 0.64%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.62, LLY has a dividend in line with its industry peers.
- With a Dividend Yield of 0.64, LLY pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
- The dividend of LLY is nicely growing with an annual growth rate of 15.59%!
Dividend Growth(5Y)15.59%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- LLY pays out 28.28% of its income as dividend. This is a sustainable payout ratio.
- LLY'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 / LLY.DE FAQ
Can you provide the ChartMill fundamental rating for ELI LILLY & CO?
ChartMill assigns a fundamental rating of 6 / 10 to LLY.DE.
What is the valuation status of ELI LILLY & CO (LLY.DE) 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.
Can you provide the PE and PB ratios for LLY stock?
The Price/Earnings (PE) ratio for ELI LILLY & CO (LLY.DE) is 46.21 and the Price/Book (PB) ratio is 40.36.
What is the earnings growth outlook for ELI LILLY & CO?
The Earnings per Share (EPS) of ELI LILLY & CO (LLY.DE) is expected to grow by 84.93% in the next year.