ELI LILLY & CO (LLY)
US5324571083 - Common Stock
LLY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 197 industry peers in the Pharmaceuticals industry. While LLY has a great profitability rating, there are some minor concerns on its financial health. LLY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year LLY was profitable.
LLY had a positive operating cash flow in the past year.
Each year in the past 5 years LLY has been profitable.
Each year in the past 5 years LLY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.60%, LLY belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
LLY's Return On Equity of 47.91% is amongst the best of the industry. LLY outperforms 96.41% of its industry peers.
The Return On Invested Capital of LLY (21.48%) is better than 96.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LLY is above the industry average of 17.27%.
The 3 year average ROIC (20.29%) for LLY is below the current ROIC(21.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 47.91% | ||
| ROIC | 21.48% |
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
LLY's Profit Margin of 17.08% is amongst the best of the industry. LLY outperforms 92.31% of its industry peers.
LLY's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 31.58%, LLY belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
LLY's Operating Margin has improved in the last couple of years.
LLY has a Gross Margin of 80.16%. This is amongst the best in the industry. LLY outperforms 83.59% of its industry peers.
In the last couple of years the Gross Margin of LLY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.58% | ||
| PM (TTM) | 17.08% | ||
| GM | 80.16% |
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.
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 10.07 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY's Altman-Z score of 10.07 is amongst the best of the industry. LLY outperforms 87.69% of its industry peers.
A Debt/Equity ratio of 1.92 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 1.92, LLY is doing worse than 78.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.07 |
ROIC/WACC2.41
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.35 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a worse Current ratio (1.35) than 77.95% of its industry peers.
A Quick Ratio of 1.03 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a worse Quick ratio (1.03) than 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.90% 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 29.76%.
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)4.9%
EPS 3Y-7.29%
EPS 5Y2.6%
EPS growth Q2Q59.26%
Revenue 1Y (TTM)29.76%
Revenue growth 3Y11.62%
Revenue growth 5Y9.69%
Revenue growth Q2Q25.98%
3.2 Future
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.99% yearly.
The Revenue is expected to grow by 18.48% on average over the next years. This is quite good.
EPS Next Y99.22%
EPS Next 2Y70.81%
EPS Next 3Y57.29%
EPS Next 5Y40.99%
Revenue Next Year22.92%
Revenue Next 2Y23.93%
Revenue Next 3Y22.03%
Revenue Next 5Y18.48%
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
With a Price/Earnings ratio of 104.94, LLY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.56. LLY is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 41.43, which means the current valuation is very expensive for LLY.
LLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 76.92% of the companies in the same industry.
LLY is valuated expensively when we compare the Price/Forward Earnings ratio to 20.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.94 | ||
| Fwd PE | 41.43 |
4.2 Price Multiples
LLY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LLY is cheaper than 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 58.08 |
4.3 Compensation for Growth
LLY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 57.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)40.43
EPS Next 2Y70.81%
EPS Next 3Y57.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.35, LLY pays a better dividend. On top of this LLY pays more dividend than 89.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 14.87%!
LLY has been paying a dividend for at least 10 years, so it has a reliable track record.
LLY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.87%
Div Incr Years9
Div Non Decr Years19
5.3 Sustainability
68.77% of the earnings are spent on dividend by LLY. This is not a sustainable payout ratio.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.77%
EPS Next 2Y70.81%
EPS Next 3Y57.29%
ELI LILLY & CO
NYSE:LLY (5/14/2024, 7:04:00 PM)
After market: 763.98 0 (0%)763.98
+6.28 (+0.83%)
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 Cap726.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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(12)
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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 | 104.94 | ||
| Fwd PE | 41.43 | ||
| 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)1.06
PEG (5Y)40.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.6% | ||
| ROE | 47.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.58% | ||
| PM (TTM) | 17.08% | ||
| GM | 80.16% | ||
| 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.03 | ||
| 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)
Growth
EPS 1Y (TTM)4.9%
EPS 3Y-7.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y99.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.76%
Revenue growth 3Y11.62%
Revenue growth 5Y
Revenue growth 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