ELI LILLY & CO (LLY) Stock Fundamental Analysis
NYSE:LLY - New York Stock Exchange, Inc. - US5324571083 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LLY. LLY was compared to 194 industry peers in the Pharmaceuticals industry. LLY has an excellent profitability rating, but there are 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
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.
Of the past 5 years LLY 4 years had a positive operating cash flow.
1.2 Ratios
LLY has a Return On Assets of 11.07%. This is amongst the best in the industry. LLY outperforms 95.14% of its industry peers.
LLY's Return On Equity of 58.78% is amongst the best of the industry. LLY outperforms 98.38% of its industry peers.
LLY's Return On Invested Capital of 23.17% is amongst the best of the industry. LLY outperforms 96.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 58.78% | ||
| ROIC | 23.17% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of LLY (20.48%) is better than 93.51% of its industry peers.
LLY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 35.33%, LLY belongs to the best of the industry, outperforming 96.22% of the companies in the same industry.
In the last couple of years the Operating Margin of LLY has grown nicely.
The Gross Margin of LLY (80.91%) is better than 85.41% 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 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LLY is creating value.
LLY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
LLY has an Altman-Z score of 9.63. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY's Altman-Z score of 9.63 is amongst the best of the industry. LLY outperforms 85.95% 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 in the lower half of the industry: LLY underperforms 79.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.63 |
ROIC/WACC2.37
WACC9.76%
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 81.62% of its industry peers.
A Quick Ratio of 0.97 indicates that LLY may have some problems paying its short term obligations.
The Quick ratio of LLY (0.97) is worse than 81.08% 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 105.70% over the past year.
LLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.57% yearly.
The Revenue has grown by 32.00% 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 15.08% on average per year.
EPS 1Y (TTM)105.7%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%113.65%
Revenue 1Y (TTM)32%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%44.68%
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 29.57% on average per year.
LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.14% yearly.
EPS Next Y78.97%
EPS Next 2Y50.81%
EPS Next 3Y40.22%
EPS Next 5Y29.57%
Revenue Next Year31.25%
Revenue Next 2Y24.22%
Revenue Next 3Y20.44%
Revenue Next 5Y17.14%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
LLY is valuated quite expensively with a Price/Earnings ratio of 67.21.
LLY's Price/Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 79.46% of the companies in the same industry.
LLY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 37.55, the valuation of LLY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 77.30% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. LLY is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.21 | ||
| Fwd PE | 37.55 |
4.2 Price Multiples
76.76% of the companies in the same industry are more expensive than LLY, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 53.17 |
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.
LLY has a very decent 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 40.22% in the coming years.
PEG (NY)0.85
PEG (5Y)4.06
EPS Next 2Y50.81%
EPS Next 3Y40.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, LLY is not a good candidate for dividend investing.
LLY's Dividend Yield is rather good when compared to the industry average which is at 4.35. LLY pays more dividend than 89.73% of the companies in the same industry.
With a Dividend Yield of 0.69, LLY pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 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 Years10
Div Non Decr Years34
5.3 Sustainability
LLY pays out 54.12% of its income as dividend. 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 2Y50.81%
EPS Next 3Y40.22%
873.68
+0.56 (+0.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.57%
Inst Owner Change-0.43%
Ins Owners0.15%
Ins Owner Change-0.13%
Market Cap829.40B
Analysts81.82
Price Target1000.28 (14.49%)
Short Float %0.71%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend4.28
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)-1.07%
PT rev (3m)-3.39%
EPS NQ rev (1m)-9.27%
EPS NQ rev (3m)-9.16%
EPS NY rev (1m)2.33%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-3.39%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)1%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.21 | ||
| Fwd PE | 37.55 | ||
| P/S | 20.3 | ||
| P/FCF | N/A | ||
| P/OCF | 137.5 | ||
| P/B | 58.24 | ||
| P/tB | 428.79 | ||
| EV/EBITDA | 53.17 |
EPS(TTM)13
EY1.49%
EPS(NY)23.27
Fwd EY2.66%
FCF(TTM)-2.4
FCFYN/A
OCF(TTM)6.35
OCFY0.73%
SpS43.04
BVpS15
TBVpS2.04
PEG (NY)0.85
PEG (5Y)4.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 58.78% | ||
| ROCE | 28.34% | ||
| ROIC | 23.17% | ||
| ROICexc | 24.88% | ||
| ROICexgc | 33.61% | ||
| OM | 35.33% | ||
| PM (TTM) | 20.48% | ||
| GM | 80.91% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score7
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 | 9.63 |
F-Score7
WACC9.76%
ROIC/WACC2.37
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.7%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%113.65%
EPS Next Y78.97%
EPS Next 2Y50.81%
EPS Next 3Y40.22%
EPS Next 5Y29.57%
Revenue 1Y (TTM)32%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%44.68%
Revenue Next Year31.25%
Revenue Next 2Y24.22%
Revenue Next 3Y20.44%
Revenue Next 5Y17.14%
EBIT growth 1Y54.2%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year89.66%
EBIT Next 3Y41.1%
EBIT Next 5Y28.51%
FCF growth 1Y-1279.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.58%
OCF growth 3YN/A
OCF growth 5YN/A