ELI LILLY & CO (LLY)
US5324571083 - Common Stock
Overall LLY gets a fundamental rating of 6 out of 10. We evaluated LLY against 194 industry peers in the Pharmaceuticals industry. While LLY has a great profitability rating, there are quite some concerns on its financial health. LLY is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year LLY was profitable.
In the past year LLY had a positive cash flow from operations.
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 11.07% is amongst the best of the industry. LLY outperforms 94.79% of its industry peers.
LLY's Return On Equity of 58.78% is amongst the best of the industry. LLY outperforms 97.92% of its industry peers.
With an excellent Return On Invested Capital value of 24.33%, LLY belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LLY is significantly below the industry average of 41.90%.
The last Return On Invested Capital (24.33%) for LLY is above the 3 year average (20.29%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 20.48%, LLY belongs to the best of the industry, outperforming 94.79% of the companies in the same industry.
In the last couple of years the Profit Margin of LLY has remained more or less at the same level.
The Operating Margin of LLY (35.33%) is better than 96.88% of its industry peers.
In the last couple of years the Operating Margin of LLY has grown nicely.
The Gross Margin of LLY (80.91%) is better than 85.42% of its industry peers.
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
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.
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 8.46 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY has a better Altman-Z score (8.46) than 84.90% of its industry peers.
A Debt/Equity ratio of 2.04 is on the high side and indicates that LLY has dependencies on debt financing.
LLY has a Debt to Equity ratio of 2.04. This is amonst the worse of the industry: LLY underperforms 80.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.46 |
ROIC/WACC2.71
WACC8.97%
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 80.73% 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 80.73% 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.
The Earnings Per Share has been growing slightly by 2.60% on average over the past years.
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 41.77% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.03% on average over the next years. This is quite good.
EPS Next Y110.71%
EPS Next 2Y91.44%
EPS Next 3Y68.8%
EPS Next 5Y41.77%
Revenue Next Year35.43%
Revenue Next 2Y32.01%
Revenue Next 3Y28.16%
Revenue Next 5Y19.03%
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
LLY is valuated quite expensively with a Price/Earnings ratio of 73.37.
Compared to the rest of the industry, the Price/Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 78.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.53, LLY is valued quite expensively.
Based on the Price/Forward Earnings ratio of 32.22, the valuation of LLY can be described as expensive.
LLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 75.00% 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 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.37 | ||
| Fwd PE | 32.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit cheaper than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 45.69 |
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 68.80% in the coming years.
PEG (NY)0.66
PEG (5Y)28.27
EPS Next 2Y91.44%
EPS Next 3Y68.8%
5. Dividend
5.1 Amount
LLY has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 4.28, LLY pays a better dividend. On top of this LLY pays more dividend than 90.10% of the companies listed in the same industry.
With a Dividend Yield of 0.66, LLY pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 14.87%!
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 Years9
Div Non Decr Years33
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 2Y91.44%
EPS Next 3Y68.8%
ELI LILLY & CO
NYSE:LLY (11/15/2024, 8:23:27 PM)
After market: 746.32 +0.12 (+0.02%)746.2
-40.03 (-5.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap708.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.37 | ||
| Fwd PE | 32.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.66
PEG (5Y)28.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 58.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.33% | ||
| PM (TTM) | 20.48% | ||
| GM | 80.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)71.79%
EPS 3Y-7.29%
EPS 5Y
EPS Q2Q%
EPS Next Y110.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.41%
Revenue growth 3Y11.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y