ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:LLY • US5324571083
873.5 EUR
+11.9 (+1.38%)
Last: Jan 30, 2026, 07:00 PM
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 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 expensive, but it does show an excellent growth. With these ratings, LLY could be worth investigating further 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.
- 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 Return On Assets of 16.02%. This is amongst the best in the industry. LLY outperforms 90.91% of its industry peers.
- The Return On Equity of LLY (77.38%) is better than 96.36% of its industry peers.
- LLY's Return On Invested Capital of 28.84% is amongst the best of the industry. LLY outperforms 94.55% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LLY is significantly above the industry average of 14.00%.
- The 3 year average ROIC (21.71%) for LLY 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
- The Profit Margin of LLY (30.99%) is better than 96.36% of its industry peers.
- LLY's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 44.41%, LLY belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LLY is creating value.
- The number of shares outstanding for LLY remains at a similar level compared to 1 year ago.
- 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 8.19. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of LLY (8.19) is better 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.
- Looking at the Debt to FCF ratio, with a value of 6.60, LLY is in line with its industry, outperforming 43.64% of the companies in the same industry.
- A Debt/Equity ratio of 1.72 is on the high side and indicates that LLY has dependencies on debt financing.
- LLY has a Debt to Equity ratio of 1.72. This is in the lower half of the industry: LLY underperforms 78.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.19 |
ROIC/WACC3.1
WACC9.29%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that LLY should not have too much problems paying its short term obligations.
- LLY's Current ratio of 1.55 is fine compared to the rest of the industry. LLY outperforms 65.45% 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.
- LLY has a Quick ratio of 1.24. This is in the better half of the industry: LLY outperforms 74.55% of its industry peers.
| 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.
- LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.41%.
- 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)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.
- The Revenue is expected to grow by 19.64% on average over the next years. This is quite good.
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
- The Price/Earnings ratio is 47.55, which means the current valuation is very expensive for LLY.
- Based on the Price/Earnings ratio, LLY is valued a bit more expensive than the industry average as 67.27% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 28.30. LLY is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 31.56, LLY can be considered very expensive at the moment.
- 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 69.09% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, LLY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.55 | ||
| Fwd PE | 31.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit more expensive than the industry average as 74.55% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, LLY is valued a bit more expensive than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 153.55 | ||
| EV/EBITDA | 35.61 |
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)0.56
PEG (5Y)2.87
EPS Next 2Y59.63%
EPS Next 3Y46.9%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.68%, LLY is not a good candidate for dividend investing.
- LLY's Dividend Yield is comparable with the industry average which is at 1.72.
- Compared to an average S&P500 Dividend Yield of 1.83, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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.
- The dividend of LLY is growing, but earnings are growing more, so the dividend growth is 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 47.55 and the Price/Book (PB) ratio is 41.54.
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.