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
LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is valued quite expensive, but it does show an excellent growth. 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.
- In the past 5 years LLY always reported a positive cash flow from operatings.
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.
- With an excellent Return On Equity value of 77.38%, LLY belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 28.84%, LLY belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for LLY is significantly above the industry average of 13.98%.
- 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 96.36% of its industry peers.
- LLY's Profit Margin has declined in the last couple of years.
- LLY's Operating Margin of 44.41% is amongst the best of the industry. LLY outperforms 96.36% of its industry peers.
- In the last couple of years the Operating Margin of LLY has grown nicely.
- LLY's Gross Margin of 83.03% is amongst the best of the industry. LLY outperforms 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
- LLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, LLY has about the same amount of shares outstanding.
- Compared to 5 years ago, LLY has less shares outstanding
- LLY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.25 indicates that LLY is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LLY (8.25) 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.
- LLY's Debt to FCF ratio of 6.60 is in line compared to the rest of the industry. LLY outperforms 43.64% of its industry peers.
- A Debt/Equity ratio of 1.72 is on the high side and indicates that LLY has dependencies on debt 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 | 8.25 |
ROIC/WACC3.1
WACC9.29%
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.
- Looking at the Current ratio, with a value of 1.55, LLY is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
- A Quick Ratio of 1.24 indicates that LLY should not have too much problems paying its short term obligations.
- LLY's Quick ratio of 1.24 is fine compared to the rest 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.
- LLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.57% yearly.
- LLY shows a strong growth in Revenue. In the last year, 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 Y84.93%
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
- Based on the Price/Earnings ratio of 47.34, the valuation of LLY can be described as expensive.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, LLY is valued quite expensively.
- The Price/Forward Earnings ratio is 31.43, which means the current valuation is very expensive for LLY.
- LLY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. LLY is more expensive than 69.09% of the companies in the same industry.
- LLY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.34 | ||
| Fwd PE | 31.43 |
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 69.09% of the companies in the same industry.
- 65.45% 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 | 152.92 | ||
| EV/EBITDA | 35.94 |
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 46.90% in the coming years.
PEG (NY)0.56
PEG (5Y)2.86
EPS Next 2Y59.63%
EPS Next 3Y46.9%
5. Dividend
5.1 Amount
- LLY has a yearly dividend return of 0.68%, which is pretty low.
- LLY's Dividend Yield is comparable with the industry average which is at 1.92.
- 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.
- 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 47.34 and the Price/Book (PB) ratio is 41.37.
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.