ELI LILLY & CO (LLY)
US5324571083 - Common Stock
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 193 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, but there are concerns on its financial health. LLY is growing strongly while it is still valued neutral. This is a good combination!
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 has a better Return On Assets (11.07%) than 95.29% of its industry peers.
With an excellent Return On Equity value of 58.78%, LLY belongs to the best of the industry, outperforming 97.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.33%, LLY belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
LLY had an Average Return On Invested Capital over the past 3 years of 20.29%. This is significantly below the industry average of 43.18%.
The 3 year average ROIC (20.29%) for LLY is below the current ROIC(24.33%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of LLY (20.48%) is better than 93.72% of its industry peers.
LLY's Profit Margin has been stable in the last couple of years.
LLY has a better Operating Margin (35.33%) than 96.34% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
Looking at the Gross Margin, with a value of 80.91%, LLY belongs to the top of the industry, outperforming 85.86% 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 | 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%
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.
Compared to 5 years ago, LLY has less shares outstanding
LLY has a worse debt/assets ratio than last year.
2.2 Solvency
LLY has an Altman-Z score of 8.56. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.56, LLY belongs to the top of the industry, outperforming 85.34% of the companies in the same industry.
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: 80.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.56 |
ROIC/WACC2.58
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.27 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a Current ratio of 1.27. This is amonst the worse of the industry: LLY underperforms 80.10% of its industry peers.
A Quick Ratio of 0.97 indicates that LLY may have some problems paying its short term obligations.
LLY has a worse Quick ratio (0.97) than 80.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.79% over the past year.
LLY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.41%.
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
The Earnings Per Share is expected to grow by 45.20% on average over the next years. This is a very strong growth
LLY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.30% yearly.
EPS Next Y110.76%
EPS Next 2Y88.44%
EPS Next 3Y68.79%
EPS Next 5Y45.2%
Revenue Next Year35.43%
Revenue Next 2Y31.91%
Revenue Next 3Y28.06%
Revenue Next 5Y21.3%
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
A Price/Earnings ratio of 75.50 indicates a quite expensive valuation of LLY.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than the industry average as 78.53% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.42. LLY is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 34.21 indicates a quite expensive valuation of LLY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 75.39% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.56. LLY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.5 | ||
| Fwd PE | 34.21 |
4.2 Price Multiples
LLY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LLY is cheaper than 75.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 46.36 |
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.
LLY's earnings are expected to grow with 68.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)29.09
EPS Next 2Y88.44%
EPS Next 3Y68.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.32, LLY pays a better dividend. On top of this LLY pays more dividend than 90.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of LLY grows each year by 14.87%, which is quite nice.
LLY has paid a dividend for at least 10 years, which is a reliable track record.
LLY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.87%
Div Incr Years10
Div Non Decr Years34
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 2Y88.44%
EPS Next 3Y68.79%
ELI LILLY & CO
NYSE:LLY (12/20/2024, 3:57:07 PM)
767.84
+10.3 (+1.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.74%
Inst Owner Change1.36%
Ins Owners10.58%
Ins Owner Change-0.89%
Market Cap728.93B
Analysts81.76
Price Target1018.83 (32.69%)
Short Float %0.62%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Dividend Growth(5Y)14.87%
DP54.12%
Div Incr Years10
Div Non Decr Years34
Ex-Date
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)-1.6%
PT rev (3m)-0.42%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)18.02%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-19.65%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)9.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.5 | ||
| Fwd PE | 34.21 | ||
| P/S | 17.84 | ||
| P/FCF | N/A | ||
| P/OCF | 120.84 | ||
| P/B | 51.19 | ||
| P/tB | 376.84 | ||
| EV/EBITDA | 46.36 |
EPS(TTM)10.17
EY1.32%
EPS(NY)22.44
Fwd EY2.92%
FCF(TTM)-2.4
FCFYN/A
OCF(TTM)6.35
OCFY0.83%
SpS43.04
BVpS15
TBVpS2.04
PEG (NY)0.68
PEG (5Y)29.09
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.56 |
F-Score6
WACC9.43%
ROIC/WACC2.58
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 Y110.76%
EPS Next 2Y88.44%
EPS Next 3Y68.79%
EPS Next 5Y45.2%
Revenue 1Y (TTM)27.41%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Sales Q2Q%20.43%
Revenue Next Year35.43%
Revenue Next 2Y31.91%
Revenue Next 3Y28.06%
Revenue Next 5Y21.3%
EBIT growth 1Y54.2%
EBIT growth 3Y14.66%
EBIT growth 5Y12.28%
EBIT Next Year139.39%
EBIT Next 3Y72.55%
EBIT Next 5Y47.19%
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%