ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LLY - US5324571083 - Common Stock
927.4 EUR
-18.5 (-1.96%)
We assign a fundamental rating of 6 out of 10 to LLY. LLY was compared to 53 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, but there are some minor concerns on its financial health. LLY shows excellent growth, but is valued quite expensive already. With these ratings, LLY could be worth investigating further 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.
Each year in the past 5 years LLY has been profitable.
In the past 5 years LLY always reported a positive cash flow from operatings.
1.2 Ratios
LLY's Return On Assets of 16.02% is amongst the best of the industry. LLY outperforms 92.73% of its industry peers.
LLY's Return On Equity of 77.38% is amongst the best of the industry. LLY outperforms 98.18% of its industry peers.
LLY has a Return On Invested Capital of 28.84%. This is amongst the best in the industry. LLY outperforms 96.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LLY is significantly above the industry average of 14.02%.
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 has a better Profit Margin (30.99%) than 98.18% of its industry peers.
In the last couple of years the Profit Margin of LLY has declined.
The Operating Margin of LLY (44.41%) is better than 98.18% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
LLY has a better Gross Margin (83.03%) than 87.27% of its industry peers.
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.
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 8.49 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY has a better Altman-Z score (8.49) than 92.73% of its industry peers.
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.
The Debt to FCF ratio of LLY (6.60) is comparable to the rest of the industry.
LLY has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.72, LLY is doing worse than 78.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.49 |
ROIC/WACC3.09
WACC9.33%
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 61.82% 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 better Quick ratio (1.24) than 70.91% 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.
Measured over the past years, LLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.57% on average per year.
Looking at the last year, LLY shows a very strong growth in Revenue. The Revenue has grown by 45.41%.
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
The Earnings Per Share is expected to grow by 32.61% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.64% on average over the next years. This is quite good.
EPS Next Y84.97%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
EPS Next 5Y32.61%
Revenue Next Year41.27%
Revenue Next 2Y30.36%
Revenue Next 3Y25.76%
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
With a Price/Earnings ratio of 49.09, LLY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, LLY is valued a bit more expensive than 63.64% of the companies in the same industry.
LLY is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.91, 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 65.45% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, LLY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.09 | ||
| Fwd PE | 32.91 |
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 70.91% of the companies listed in the same industry.
61.82% 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 | 158.58 | ||
| EV/EBITDA | 37.23 |
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.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 46.26% in the coming years.
PEG (NY)0.58
PEG (5Y)2.96
EPS Next 2Y58.86%
EPS Next 3Y46.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, 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 1.92, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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 2Y58.86%
EPS Next 3Y46.26%
FRA:LLY (1/9/2026, 7:00:00 PM)
927.4
-18.5 (-1.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap876.75B
Revenue(TTM)59.42B
Net Income(TTM)18.41B
Analysts81.08
Price Target940.38 (1.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend4.24
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)2.95%
PT rev (3m)22.41%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)0.02%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.09 | ||
| Fwd PE | 32.91 | ||
| P/S | 17.18 | ||
| P/FCF | 158.58 | ||
| P/OCF | 63.55 | ||
| P/B | 42.9 | ||
| P/tB | 89.16 | ||
| EV/EBITDA | 37.23 |
EPS(TTM)18.89
EY2.04%
EPS(NY)28.18
Fwd EY3.04%
FCF(TTM)5.85
FCFY0.63%
OCF(TTM)14.59
OCFY1.57%
SpS53.99
BVpS21.62
TBVpS10.4
PEG (NY)0.58
PEG (5Y)2.96
Graham Number95.86
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 | 8.49 |
F-Score7
WACC9.33%
ROIC/WACC3.09
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 Y84.97%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
EPS Next 5Y32.61%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
Revenue Next Year41.27%
Revenue Next 2Y30.36%
Revenue Next 3Y25.76%
Revenue Next 5Y19.64%
EBIT growth 1Y82.81%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year101.98%
EBIT Next 3Y46.72%
EBIT Next 5Y33.2%
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
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 49.09 and the Price/Book (PB) ratio is 42.9.
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 84.97% in the next year.