ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis
FRA:LLY - Deutsche Boerse Ag - US5324571083 - Common Stock - Currency: EUR
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 52 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, but there are concerns on its financial health. LLY is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
LLY had positive earnings in the past year.
LLY had a positive operating cash flow in the past year.
Each year in the past 5 years LLY has been profitable.
LLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LLY's Return On Assets of 13.45% is amongst the best of the industry. LLY outperforms 86.54% of its industry peers.
LLY's Return On Equity of 74.62% is amongst the best of the industry. LLY outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 27.67%, LLY belongs to the best of the industry, outperforming 98.08% 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 13.62%.
The 3 year average ROIC (21.71%) for LLY is below the current ROIC(27.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | 74.62% | ||
| ROIC | 27.67% |
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 23.51%, LLY belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
LLY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.83%, LLY belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Operating Margin of LLY has grown nicely.
LLY has a Gross Margin of 81.31%. This is amongst the best in the industry. LLY outperforms 82.69% of its industry peers.
LLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.83% | ||
| PM (TTM) | 23.51% | ||
| GM | 81.31% |
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.
LLY has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LLY has less shares outstanding
The debt/assets ratio for LLY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.27 indicates that LLY is not in any danger for bankruptcy at the moment.
The Altman-Z score of LLY (9.27) is better than 96.15% of its industry peers.
The Debt to FCF ratio of LLY is 81.21, which is on the high side as it means it would take LLY, 81.21 years of fcf income to pay off all of its debts.
LLY's Debt to FCF ratio of 81.21 is on the low side compared to the rest of the industry. LLY is outperformed by 63.46% of its industry peers.
LLY has a Debt/Equity ratio of 2.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LLY (2.01) is worse than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 81.21 | ||
| Altman-Z | 9.27 |
ROIC/WACC2.96
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.15 indicates that LLY should not have too much problems paying its short term obligations.
The Current ratio of LLY (1.15) is worse than 73.08% of its industry peers.
A Quick Ratio of 0.89 indicates that LLY may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, LLY perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.70%, 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.
The Revenue has grown by 32.00% in the past year. This is a very strong growth!
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
EPS 1Y (TTM)105.7%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%113.65%
Revenue 1Y (TTM)32%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%44.68%
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 29.57% on average per year.
Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 17.14% on average per year.
EPS Next Y79.4%
EPS Next 2Y50.55%
EPS Next 3Y40.55%
EPS Next 5Y29.57%
Revenue Next Year31.45%
Revenue Next 2Y24.7%
Revenue Next 3Y21.92%
Revenue Next 5Y17.14%
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
With a Price/Earnings ratio of 66.98, LLY can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as LLY.
LLY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 37.32, 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 61.54% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (22.10), we can say LLY is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.98 | ||
| Fwd PE | 37.32 |
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 63.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LLY is valued a bit more expensive than the industry average as 63.46% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1992.02 | ||
| EV/EBITDA | 45.48 |
4.3 Compensation for Growth
The 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 40.55% in the coming years.
PEG (NY)0.84
PEG (5Y)4.04
EPS Next 2Y50.55%
EPS Next 3Y40.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.86, LLY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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 44.20% 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.
DP44.2%
EPS Next 2Y50.55%
EPS Next 3Y40.55%
FRA:LLY (3/7/2025, 7:00:00 PM)
801.7
-51.6 (-6.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.27%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap760.15B
Analysts82.5
Price Target955.16 (19.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend4.55
Dividend Growth(5Y)15.6%
DP44.2%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.94%
Min EPS beat(2)-20.34%
Max EPS beat(2)6.45%
EPS beat(4)3
Avg EPS beat(4)9.86%
Min EPS beat(4)-20.34%
Max EPS beat(4)49.43%
EPS beat(8)6
Avg EPS beat(8)27.82%
EPS beat(12)9
Avg EPS beat(12)19.37%
EPS beat(16)10
Avg EPS beat(16)13.42%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-6.46%
Max Revenue beat(2)-1.24%
Revenue beat(4)1
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)12.82%
Revenue beat(8)5
Avg Revenue beat(8)2.51%
Revenue beat(12)6
Avg Revenue beat(12)1.42%
Revenue beat(16)9
Avg Revenue beat(16)1.11%
PT rev (1m)1.13%
PT rev (3m)-1.24%
EPS NQ rev (1m)-5.57%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)2.34%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)-1.81%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.98 | ||
| Fwd PE | 37.32 | ||
| P/S | 18.32 | ||
| P/FCF | 1992.02 | ||
| P/OCF | 93.59 | ||
| P/B | 58.15 | ||
| P/tB | 365.9 | ||
| EV/EBITDA | 45.48 |
EPS(TTM)11.97
EY1.49%
EPS(NY)21.48
Fwd EY2.68%
FCF(TTM)0.4
FCFY0.05%
OCF(TTM)8.57
OCFY1.07%
SpS43.76
BVpS13.79
TBVpS2.19
PEG (NY)0.84
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | 74.62% | ||
| ROCE | 33.85% | ||
| ROIC | 27.67% | ||
| ROICexc | 29.69% | ||
| ROICexgc | 39.82% | ||
| OM | 37.83% | ||
| PM (TTM) | 23.51% | ||
| GM | 81.31% | ||
| FCFM | 0.92% |
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-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 81.21 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 475.69% | ||
| Cap/Sales | 18.66% | ||
| Interest Coverage | 29.51 | ||
| Cash Conversion | 46.89% | ||
| Profit Quality | 3.91% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 9.27 |
F-Score7
WACC9.36%
ROIC/WACC2.96
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)105.7%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%113.65%
EPS Next Y79.4%
EPS Next 2Y50.55%
EPS Next 3Y40.55%
EPS Next 5Y29.57%
Revenue 1Y (TTM)32%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%44.68%
Revenue Next Year31.45%
Revenue Next 2Y24.7%
Revenue Next 3Y21.92%
Revenue Next 5Y17.14%
EBIT growth 1Y65.03%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year89.66%
EBIT Next 3Y41.1%
EBIT Next 5Y28.51%
FCF growth 1Y113.14%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y107.96%
OCF growth 3Y6.69%
OCF growth 5Y12.76%