ELI LILLY & CO (LLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LLY - US5324571083 - Common Stock
1063.56 USD
-21.63 (-1.99%)
1064 USD
+0.44 (+0.04%)
LLY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 190 industry peers in the Pharmaceuticals industry. While LLY belongs to the best of the industry regarding profitability, there are some minor 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. These ratings could make LLY a good candidate for dividend and growth investing.
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.
In the past 5 years LLY has always 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 16.02%, LLY belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
LLY's Return On Equity of 77.38% is amongst the best of the industry. LLY outperforms 99.48% of its industry peers.
With an excellent Return On Invested Capital value of 28.84%, LLY belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LLY is significantly above the industry average of 12.84%.
The last Return On Invested Capital (28.84%) for LLY is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 77.38% | ||
| ROIC | 28.84% |
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
The Profit Margin of LLY (30.99%) is better than 94.79% of its industry peers.
LLY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 44.41%, LLY belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
LLY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 83.03%, LLY belongs to the top of the industry, outperforming 86.98% of the companies in the same industry.
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 | 44.41% | ||
| PM (TTM) | 30.99% | ||
| GM | 83.03% |
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 about the same amout of shares outstanding than it did 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
An Altman-Z score of 8.39 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY has a better Altman-Z score (8.39) than 81.25% of its industry peers.
The Debt to FCF ratio of LLY is 6.60, which is on the high side as it means it would take LLY, 6.60 years of fcf income to pay off all of its debts.
LLY's Debt to FCF ratio of 6.60 is amongst the best of the industry. LLY outperforms 80.73% of its industry peers.
LLY has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.72, LLY is doing worse than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.39 |
ROIC/WACC3.08
WACC9.35%
2.3 Liquidity
LLY has a Current Ratio of 1.55. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.55, LLY is doing worse than 71.35% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a Quick ratio of 1.24. This is in the lower half of the industry: LLY underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.22% over the past year.
The Earnings Per Share has been growing by 16.57% on average over the past years. This is quite good.
LLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.41%.
The Revenue has been growing by 15.08% on average over the past years. This is quite good.
EPS 1Y (TTM)116.22%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%494.92%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
3.2 Future
LLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.61% yearly.
The Revenue is expected to grow by 19.64% on average over the next years. This is quite good.
EPS Next Y84.97%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
EPS Next 5Y32.61%
Revenue Next Year41.27%
Revenue Next 2Y30.36%
Revenue Next 3Y25.76%
Revenue Next 5Y19.64%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 48.37 indicates a quite expensive valuation of LLY.
Compared to the rest of the industry, the Price/Earnings ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 77.08% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LLY to the average of the S&P500 Index (27.19), we can say LLY is valued expensively.
Based on the Price/Forward Earnings ratio of 32.42, 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 72.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, LLY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.37 | ||
| Fwd PE | 32.42 |
4.2 Price Multiples
78.65% of the companies in the same industry are more expensive than LLY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LLY indicates a somewhat cheap valuation: LLY is cheaper than 74.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 156.22 | ||
| EV/EBITDA | 36.69 |
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.
LLY has an outstanding 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 46.26% in the coming years.
PEG (NY)0.57
PEG (5Y)2.92
EPS Next 2Y58.86%
EPS Next 3Y46.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.35, 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 0.64, LLY pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
On average, the dividend of LLY grows each year by 15.59%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.59%
Div Incr Years10
Div Non Decr Years34
5.3 Sustainability
28.28% 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.
DP28.28%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
1063.56
-21.63 (-1.99%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change0.02%
Ins Owners0.16%
Ins Owner Change-4.34%
Market Cap1.01T
Revenue(TTM)59.42B
Net Income(TTM)18.41B
Analysts81.08
Price Target1108.67 (4.24%)
Short Float %0.69%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend4.93
Dividend Growth(5Y)15.59%
DP28.28%
Div Incr Years10
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.28%
Min EPS beat(2)14.51%
Max EPS beat(2)22.05%
EPS beat(4)4
Avg EPS beat(4)13.1%
Min EPS beat(4)6.45%
Max EPS beat(4)22.05%
EPS beat(8)7
Avg EPS beat(8)12.06%
EPS beat(12)10
Avg EPS beat(12)23.73%
EPS beat(16)13
Avg EPS beat(16)17.41%
Revenue beat(2)2
Avg Revenue beat(2)6.77%
Min Revenue beat(2)4.72%
Max Revenue beat(2)8.81%
Revenue beat(4)2
Avg Revenue beat(4)2.95%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)8.81%
Revenue beat(8)4
Avg Revenue beat(8)2.39%
Revenue beat(12)7
Avg Revenue beat(12)2.64%
Revenue beat(16)9
Avg Revenue beat(16)2.04%
PT rev (1m)3.77%
PT rev (3m)22.6%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)0.02%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.37 | ||
| Fwd PE | 32.42 | ||
| P/S | 16.92 | ||
| P/FCF | 156.22 | ||
| P/OCF | 62.6 | ||
| P/B | 42.26 | ||
| P/tB | 87.82 | ||
| EV/EBITDA | 36.69 |
EPS(TTM)21.99
EY2.07%
EPS(NY)32.81
Fwd EY3.08%
FCF(TTM)6.81
FCFY0.64%
OCF(TTM)16.99
OCFY1.6%
SpS62.85
BVpS25.17
TBVpS12.11
PEG (NY)0.57
PEG (5Y)2.92
Graham Number111.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | 77.38% | ||
| ROCE | 35.28% | ||
| ROIC | 28.84% | ||
| ROICexc | 33.25% | ||
| ROICexgc | 41.06% | ||
| OM | 44.41% | ||
| PM (TTM) | 30.99% | ||
| GM | 83.03% | ||
| FCFM | 10.83% |
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%
ROICexgc growth 3Y1.59%
ROICexgc growth 5Y4.02%
ROICexc growth 3Y9.55%
ROICexc growth 5Y8.82%
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 507.66% | ||
| Cap/Sales | 16.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.78% | ||
| Profit Quality | 34.96% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 8.39 |
F-Score7
WACC9.35%
ROIC/WACC3.08
Cap/Depr(3y)385.26%
Cap/Depr(5y)286.02%
Cap/Sales(3y)16.93%
Cap/Sales(5y)13.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)116.22%
EPS 3Y16.75%
EPS 5Y16.57%
EPS Q2Q%494.92%
EPS Next Y84.97%
EPS Next 2Y58.86%
EPS Next 3Y46.26%
EPS Next 5Y32.61%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
Revenue Next Year41.27%
Revenue Next 2Y30.36%
Revenue Next 3Y25.76%
Revenue Next 5Y19.64%
EBIT growth 1Y82.81%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year101.98%
EBIT Next 3Y46.72%
EBIT Next 5Y33.2%
FCF growth 1Y4003.21%
FCF growth 3Y-57.48%
FCF growth 5Y-34.68%
OCF growth 1Y158.46%
OCF growth 3Y6.69%
OCF growth 5Y12.76%
ELI LILLY & CO / LLY FAQ
Can you provide the ChartMill fundamental rating for ELI LILLY & CO?
ChartMill assigns a fundamental rating of 7 / 10 to LLY.
What is the valuation status of ELI LILLY & CO (LLY) stock?
ChartMill assigns a valuation rating of 5 / 10 to ELI LILLY & CO (LLY). This can be considered as Fairly Valued.
What is the profitability of LLY stock?
ELI LILLY & CO (LLY) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for LLY stock?
The Price/Earnings (PE) ratio for ELI LILLY & CO (LLY) is 48.37 and the Price/Book (PB) ratio is 42.26.
What is the earnings growth outlook for ELI LILLY & CO?
The Earnings per Share (EPS) of ELI LILLY & CO (LLY) is expected to grow by 84.97% in the next year.