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ELI LILLY & CO (LLY.DE) Stock Fundamental Analysis

FRA:LLY - Deutsche Boerse Ag - US5324571083 - Common Stock - Currency: EUR

806.95  +25.75 (+3.3%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to LLY. LLY was compared to 52 industry peers in the Pharmaceuticals industry. While LLY has a great profitability rating, there are quite some concerns on its financial health. LLY is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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9

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.
LLY.DE Yearly Net Income VS EBIT VS OCF VS FCFLLY.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B 8B 10B

1.2 Ratios

LLY has a better Return On Assets (11.07%) than 89.58% of its industry peers.
Looking at the Return On Equity, with a value of 58.78%, LLY belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
The Return On Invested Capital of LLY (24.33%) is better than 97.92% of its industry peers.
LLY had an Average Return On Invested Capital over the past 3 years of 20.29%. This is significantly above the industry average of 12.45%.
The 3 year average ROIC (20.29%) for LLY is below the current ROIC(24.33%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 11.07%
ROE 58.78%
ROIC 24.33%
ROA(3y)10.75%
ROA(5y)13.34%
ROE(3y)56.48%
ROE(5y)119.66%
ROIC(3y)20.29%
ROIC(5y)19.04%
LLY.DE Yearly ROA, ROE, ROICLLY.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 200 300

1.3 Margins

LLY has a Profit Margin of 20.48%. This is amongst the best in the industry. LLY outperforms 91.67% of its industry peers.
LLY's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 35.33%, LLY belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
LLY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.91%, LLY belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Gross Margin of LLY has remained more or less at the same level.
Industry RankSector Rank
OM 35.33%
PM (TTM) 20.48%
GM 80.91%
OM growth 3Y2.73%
OM growth 5Y2.37%
PM growth 3Y-15.26%
PM growth 5Y0.42%
GM growth 3Y0.68%
GM growth 5Y0.26%
LLY.DE Yearly Profit, Operating, Gross MarginsLLY.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
LLY.DE Yearly Shares OutstandingLLY.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
LLY.DE Yearly Total Debt VS Total AssetsLLY.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

LLY has an Altman-Z score of 9.02. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY's Altman-Z score of 9.02 is amongst the best of the industry. LLY outperforms 95.83% of its industry peers.
LLY has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.04, LLY is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.04
Debt/FCF N/A
Altman-Z 9.02
ROIC/WACC2.57
WACC9.47%
LLY.DE Yearly LT Debt VS Equity VS FCFLLY.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

LLY has a Current Ratio of 1.27. 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 worse Current ratio (1.27) than 68.75% of its industry peers.
A Quick Ratio of 0.97 indicates that LLY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, LLY is in line with its industry, outperforming 54.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 0.97
LLY.DE Yearly Current Assets VS Current LiabilitesLLY.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

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9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 71.79% over the past year.
The Earnings Per Share has been growing slightly by 2.60% on average over the past years.
The Revenue has grown by 27.41% 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 9.69% on average per year.
EPS 1Y (TTM)71.79%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS Q2Q%1080%
Revenue 1Y (TTM)27.41%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Sales Q2Q%20.43%

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 45.92% on average per year.
The Revenue is expected to grow by 21.75% on average over the next years. This is a very strong growth
EPS Next Y109.18%
EPS Next 2Y89.89%
EPS Next 3Y67.58%
EPS Next 5Y45.92%
Revenue Next Year34.67%
Revenue Next 2Y31.78%
Revenue Next 3Y27.26%
Revenue Next 5Y21.75%

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.
LLY.DE Yearly Revenue VS EstimatesLLY.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
LLY.DE Yearly EPS VS EstimatesLLY.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

LLY is valuated quite expensively with a Price/Earnings ratio of 82.01.
LLY's Price/Earnings ratio is a bit more expensive when compared to the industry. LLY is more expensive than 64.58% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, LLY is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.60, the valuation of LLY can be described as expensive.
64.58% of the companies in the same industry are cheaper than LLY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (92.74), we can say LLY is valued rather cheaply.
Industry RankSector Rank
PE 82.01
Fwd PE 36.6
LLY.DE Price Earnings VS Forward Price EarningsLLY.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 62.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 49.29
LLY.DE Per share dataLLY.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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 67.58% in the coming years.
PEG (NY)0.75
PEG (5Y)31.6
EPS Next 2Y89.89%
EPS Next 3Y67.58%

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4

5. Dividend

5.1 Amount

LLY has a yearly dividend return of 0.73%, which is pretty low.
LLY's Dividend Yield is comparable with the industry average which is at 2.69.
Compared to an average S&P500 Dividend Yield of 2.28, LLY's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.73%

5.2 History

The dividend of LLY is nicely growing with an annual growth rate of 14.87%!
Dividend Growth(5Y)14.87%
Div Incr Years6
Div Non Decr Years6
LLY.DE Yearly Dividends per shareLLY.DE Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

54.12% of the earnings are spent on dividend by LLY. This is a bit on the high side, but may be sustainable.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.12%
EPS Next 2Y89.89%
EPS Next 3Y67.58%
LLY.DE Yearly Income VS Free CF VS DividendLLY.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B 8B
LLY.DE Dividend Payout.LLY.DE Dividend Payout, showing the Payout Ratio.LLY.DE Dividend Payout.PayoutRetained Earnings

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ELI LILLY & CO

FRA:LLY (2/5/2025, 2:57:22 PM)

806.95

+25.75 (+3.3%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-06 2025-02-06/bmo
Inst Owners83.57%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap766.05B
Analysts81.76
Price Target944.49 (17.04%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.73%
Yearly Dividend4.28
Dividend Growth(5Y)14.87%
DP54.12%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.55%
Min EPS beat(2)-20.34%
Max EPS beat(2)49.43%
EPS beat(4)3
Avg EPS beat(4)11.03%
Min EPS beat(4)-20.34%
Max EPS beat(4)49.43%
EPS beat(8)6
Avg EPS beat(8)29.04%
EPS beat(12)9
Avg EPS beat(12)18.85%
EPS beat(16)10
Avg EPS beat(16)14%
Revenue beat(2)1
Avg Revenue beat(2)3.18%
Min Revenue beat(2)-6.46%
Max Revenue beat(2)12.82%
Revenue beat(4)2
Avg Revenue beat(4)1.83%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)12.82%
Revenue beat(8)5
Avg Revenue beat(8)2.49%
Revenue beat(12)7
Avg Revenue beat(12)1.73%
Revenue beat(16)10
Avg Revenue beat(16)1.25%
PT rev (1m)-6.15%
PT rev (3m)-0.98%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)16.51%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-2.37%
Revenue NQ rev (1m)-2.46%
Revenue NQ rev (3m)6.38%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-1.97%
Valuation
Industry RankSector Rank
PE 82.01
Fwd PE 36.6
P/S 19.37
P/FCF N/A
P/OCF 131.25
P/B 55.6
P/tB 409.3
EV/EBITDA 49.29
EPS(TTM)9.84
EY1.22%
EPS(NY)22.05
Fwd EY2.73%
FCF(TTM)-2.32
FCFYN/A
OCF(TTM)6.15
OCFY0.76%
SpS41.65
BVpS14.51
TBVpS1.97
PEG (NY)0.75
PEG (5Y)31.6
Profitability
Industry RankSector Rank
ROA 11.07%
ROE 58.78%
ROCE 28.34%
ROIC 24.33%
ROICexc 26.14%
ROICexgc 35.3%
OM 35.33%
PM (TTM) 20.48%
GM 80.91%
FCFM N/A
ROA(3y)10.75%
ROA(5y)13.34%
ROE(3y)56.48%
ROE(5y)119.66%
ROIC(3y)20.29%
ROIC(5y)19.04%
ROICexc(3y)22.12%
ROICexc(5y)20.87%
ROICexgc(3y)33.97%
ROICexgc(5y)32.6%
ROCE(3y)25.36%
ROCE(5y)23.44%
ROICexcg growth 3Y1.05%
ROICexcg growth 5Y7.54%
ROICexc growth 3Y4.74%
ROICexc growth 5Y2.31%
OM growth 3Y2.73%
OM growth 5Y2.37%
PM growth 3Y-15.26%
PM growth 5Y0.42%
GM growth 3Y0.68%
GM growth 5Y0.26%
F-Score6
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 2.04
Debt/FCF N/A
Debt/EBITDA 1.8
Cap/Depr 497.6%
Cap/Sales 20.33%
Interest Coverage 250
Cash Conversion 37.45%
Profit Quality N/A
Current Ratio 1.27
Quick Ratio 0.97
Altman-Z 9.02
F-Score6
WACC9.47%
ROIC/WACC2.57
Cap/Depr(3y)256.06%
Cap/Depr(5y)206.25%
Cap/Sales(3y)12.33%
Cap/Sales(5y)10.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.79%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS Q2Q%1080%
EPS Next Y109.18%
EPS Next 2Y89.89%
EPS Next 3Y67.58%
EPS Next 5Y45.92%
Revenue 1Y (TTM)27.41%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Sales Q2Q%20.43%
Revenue Next Year34.67%
Revenue Next 2Y31.78%
Revenue Next 3Y27.26%
Revenue Next 5Y21.75%
EBIT growth 1Y54.2%
EBIT growth 3Y14.66%
EBIT growth 5Y12.28%
EBIT Next Year144.43%
EBIT Next 3Y71.21%
EBIT Next 5Y46.58%
FCF growth 1Y-142.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.34%
OCF growth 3Y-13.27%
OCF growth 5Y-5.15%