ELI LILLY & CO (LLY) Stock Fundamental Analysis
USA - NYSE:LLY - US5324571083 - Common Stock
759.87 USD
-0.26 (-0.03%)
We assign a fundamental rating of 6 out of 10 to LLY. LLY was compared to 196 industry peers in the Pharmaceuticals industry. While LLY belongs to the best of the industry regarding profitability, there are concerns on its financial health. LLY is growing strongly while it is still valued neutral. This is a good combination! LLY also has an excellent dividend rating.
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
With an excellent Return On Assets value of 13.67%, LLY belongs to the best of the industry, outperforming 94.39% of the companies in the same industry.
The Return On Equity of LLY (75.52%) is better than 98.47% of its industry peers.
LLY has a better Return On Invested Capital (29.63%) than 97.96% of its industry peers.
LLY had an Average Return On Invested Capital over the past 3 years of 21.71%. This is significantly above the industry average of 15.28%.
The last Return On Invested Capital (29.63%) for LLY is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 75.52% | ||
| ROIC | 29.63% |
ROA(3y)11.42%
ROA(5y)11.8%
ROE(3y)60.64%
ROE(5y)70.77%
ROIC(3y)21.71%
ROIC(5y)19.96%
1.3 Margins
LLY has a Profit Margin of 25.91%. This is amongst the best in the industry. LLY outperforms 95.92% of its industry peers.
In the last couple of years the Profit Margin of LLY has declined.
Looking at the Operating Margin, with a value of 42.13%, LLY belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
In the last couple of years the Operating Margin of LLY has grown nicely.
LLY has a better Gross Margin (82.64%) than 87.76% 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 | 42.13% | ||
| PM (TTM) | 25.91% | ||
| GM | 82.64% |
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
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.
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 6.85 indicates that LLY is not in any danger for bankruptcy at the moment.
The Altman-Z score of LLY (6.85) is better than 82.65% of its industry peers.
LLY has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
LLY has a worse Debt to Equity ratio (1.87) than 76.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.85 |
ROIC/WACC3.07
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.28 indicates that LLY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.28, LLY is not doing good in the industry: 73.98% of the companies in the same industry are doing better.
A Quick Ratio of 1.00 indicates that LLY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, LLY is doing worse than 73.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.67% 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.
LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.83%.
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
EPS 1Y (TTM)77.67%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%60.97%
Revenue 1Y (TTM)36.83%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%37.64%
3.2 Future
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.30% yearly.
The Revenue is expected to grow by 17.76% on average over the next years. This is quite good.
EPS Next Y76.85%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
EPS Next 5Y30.3%
Revenue Next Year36.76%
Revenue Next 2Y27.21%
Revenue Next 3Y23.13%
Revenue Next 5Y17.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 47.05, which means the current valuation is very expensive for LLY.
LLY's Price/Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 79.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. LLY is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 24.89, which indicates a rather expensive current valuation of LLY.
72.96% of the companies in the same industry are more expensive than LLY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, LLY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.05 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
LLY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LLY is cheaper than 80.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.05 |
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.
LLY's earnings are expected to grow with 42.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)2.84
EPS Next 2Y53.25%
EPS Next 3Y42.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.04, LLY pays a better dividend. On top of this LLY pays more dividend than 89.80% of the companies listed in the same industry.
With a Dividend Yield of 0.79, LLY pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of LLY grows each year by 15.60%, which is quite nice.
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)15.6%
Div Incr Years10
Div Non Decr Years34
5.3 Sustainability
36.46% of the earnings are spent on dividend by LLY. This is a low number and sustainable payout ratio.
The dividend of LLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.46%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
NYSE:LLY (9/18/2025, 2:44:09 PM)
759.87
-0.26 (-0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners84.01%
Inst Owner Change-8.74%
Ins Owners0.16%
Ins Owner Change-0.3%
Market Cap719.19B
Analysts80
Price Target909.39 (19.68%)
Short Float %0.85%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend4.93
Dividend Growth(5Y)15.6%
DP36.46%
Div Incr Years10
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.94%
Min EPS beat(2)9.38%
Max EPS beat(2)14.51%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-20.34%
Max EPS beat(4)14.51%
EPS beat(8)7
Avg EPS beat(8)31.01%
EPS beat(12)10
Avg EPS beat(12)22.08%
EPS beat(16)12
Avg EPS beat(16)15.86%
Revenue beat(2)1
Avg Revenue beat(2)2.11%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)4.72%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-6.46%
Max Revenue beat(4)4.72%
Revenue beat(8)4
Avg Revenue beat(8)1.92%
Revenue beat(12)6
Avg Revenue beat(12)1.89%
Revenue beat(16)9
Avg Revenue beat(16)1.54%
PT rev (1m)-7.97%
PT rev (3m)-8.2%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)3.8%
EPS NY rev (1m)5.23%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)4.43%
Revenue NY rev (1m)2.8%
Revenue NY rev (3m)3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.05 | ||
| Fwd PE | 24.89 | ||
| P/S | 13.5 | ||
| P/FCF | N/A | ||
| P/OCF | 65.75 | ||
| P/B | 39.36 | ||
| P/tB | 109.07 | ||
| EV/EBITDA | 31.05 |
EPS(TTM)16.15
EY2.13%
EPS(NY)30.53
Fwd EY4.02%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)11.56
OCFY1.52%
SpS56.27
BVpS19.31
TBVpS6.97
PEG (NY)0.61
PEG (5Y)2.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.67% | ||
| ROE | 75.52% | ||
| ROCE | 36.25% | ||
| ROIC | 29.63% | ||
| ROICexc | 31.43% | ||
| ROICexgc | 39.29% | ||
| OM | 42.13% | ||
| PM (TTM) | 25.91% | ||
| GM | 82.64% | ||
| FCFM | N/A |
ROA(3y)11.42%
ROA(5y)11.8%
ROE(3y)60.64%
ROE(5y)70.77%
ROIC(3y)21.71%
ROIC(5y)19.96%
ROICexc(3y)23.23%
ROICexc(5y)21.74%
ROICexgc(3y)32.89%
ROICexgc(5y)32.31%
ROCE(3y)29.19%
ROCE(5y)26%
ROICexcg growth 3Y1.59%
ROICexcg growth 5Y4.02%
ROICexc growth 3Y9.55%
ROICexc growth 5Y8.81%
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-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 580.51% | ||
| Cap/Sales | 20.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 6.85 |
F-Score6
WACC9.65%
ROIC/WACC3.07
Cap/Depr(3y)374.28%
Cap/Depr(5y)279.43%
Cap/Sales(3y)16.34%
Cap/Sales(5y)12.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.67%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%60.97%
EPS Next Y76.85%
EPS Next 2Y53.25%
EPS Next 3Y42.28%
EPS Next 5Y30.3%
Revenue 1Y (TTM)36.83%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%37.64%
Revenue Next Year36.76%
Revenue Next 2Y27.21%
Revenue Next 3Y23.13%
Revenue Next 5Y17.76%
EBIT growth 1Y67.12%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year84.34%
EBIT Next 3Y42.93%
EBIT Next 5Y29.73%
FCF growth 1Y-101.56%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y75.24%
OCF growth 3Y6.69%
OCF growth 5Y12.76%