ELI LILLY & CO (LLY) Stock Fundamental Analysis
USA - NYSE:LLY - US5324571083 - Common Stock
906.86 USD
+10.33 (+1.15%)
902.249 USD
-4.61 (-0.51%)
Overall LLY gets a fundamental rating of 7 out of 10. We evaluated LLY against 192 industry peers in the Pharmaceuticals industry. LLY has an excellent profitability rating, but there are some minor concerns on its financial health. LLY is not overvalued while it is showing excellent growth. This is an interesting combination. LLY also has an excellent dividend rating. This makes LLY very considerable for dividend and growth investing!
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
LLY has a better Return On Assets (16.02%) than 95.31% of its industry peers.
LLY's Return On Equity of 77.38% is amongst the best of the industry. LLY outperforms 98.96% of its industry peers.
LLY's Return On Invested Capital of 28.84% is amongst the best of the industry. LLY outperforms 97.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LLY is significantly above the industry average of 15.46%.
The 3 year average ROIC (21.71%) for LLY is below the current ROIC(28.84%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 30.99%, LLY belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
In the last couple of years the Profit Margin of LLY has declined.
LLY has a better Operating Margin (44.41%) than 97.92% of its industry peers.
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.
LLY's Gross Margin has been stable in the last couple of years.
| 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
LLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, LLY has a worse debt to assets ratio.
2.2 Solvency
LLY has an Altman-Z score of 7.36. This indicates that LLY is financially healthy and has little risk of bankruptcy at the moment.
LLY's Altman-Z score of 7.36 is amongst the best of the industry. LLY outperforms 81.77% 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.
The Debt to FCF ratio of LLY (6.60) is better than 80.21% of its industry peers.
A Debt/Equity ratio of 1.72 is on the high side and indicates that LLY has dependencies on debt financing.
The Debt to Equity ratio of LLY (1.72) is worse than 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 7.36 |
ROIC/WACC3.28
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a worse Current ratio (1.55) than 68.23% of its industry peers.
A Quick Ratio of 1.24 indicates that LLY should not have too much problems paying its short term obligations.
LLY has a worse Quick ratio (1.24) than 69.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
LLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.22%, which is quite impressive.
Measured over the past years, LLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.57% on average per year.
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 30.19% yearly.
LLY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.70% yearly.
EPS Next Y80.9%
EPS Next 2Y54.64%
EPS Next 3Y42.29%
EPS Next 5Y30.19%
Revenue Next Year38.67%
Revenue Next 2Y28.28%
Revenue Next 3Y23.95%
Revenue Next 5Y17.7%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.24 indicates a quite expensive valuation of LLY.
Based on the Price/Earnings ratio, LLY is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LLY to the average of the S&P500 Index (26.03), we can say LLY is valued expensively.
LLY is valuated quite expensively with a Price/Forward Earnings ratio of 29.17.
LLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LLY is cheaper than 72.92% 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 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.24 | ||
| Fwd PE | 29.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LLY is valued a bit cheaper than 79.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LLY is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 133.35 | ||
| EV/EBITDA | 31.15 |
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.
LLY's earnings are expected to grow with 42.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)2.49
EPS Next 2Y54.64%
EPS Next 3Y42.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, 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 6.54. LLY pays more dividend than 90.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of LLY is nicely growing with an annual growth rate of 15.59%!
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 2Y54.64%
EPS Next 3Y42.29%
906.86
+10.33 (+1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.75%
Inst Owner Change-0.58%
Ins Owners0.16%
Ins Owner Change-1.51%
Market Cap858.31B
Revenue(TTM)59.42B
Net Income(TTM)18.41B
Analysts80
Price Target926.82 (2.2%)
Short Float %0.72%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)1.92%
PT rev (3m)-6.13%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)1.07%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)3.8%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)1.44%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.24 | ||
| Fwd PE | 29.17 | ||
| P/S | 14.44 | ||
| P/FCF | 133.35 | ||
| P/OCF | 53.44 | ||
| P/B | 36.07 | ||
| P/tB | 74.97 | ||
| EV/EBITDA | 31.15 |
EPS(TTM)21.99
EY2.42%
EPS(NY)31.09
Fwd EY3.43%
FCF(TTM)6.8
FCFY0.75%
OCF(TTM)16.97
OCFY1.87%
SpS62.78
BVpS25.14
TBVpS12.1
PEG (NY)0.51
PEG (5Y)2.49
Graham Number111.53
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 | 7.36 |
F-Score7
WACC8.78%
ROIC/WACC3.28
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 Y80.9%
EPS Next 2Y54.64%
EPS Next 3Y42.29%
EPS Next 5Y30.19%
Revenue 1Y (TTM)45.41%
Revenue growth 3Y16.73%
Revenue growth 5Y15.08%
Sales Q2Q%53.87%
Revenue Next Year38.67%
Revenue Next 2Y28.28%
Revenue Next 3Y23.95%
Revenue Next 5Y17.7%
EBIT growth 1Y82.81%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year93.86%
EBIT Next 3Y42.49%
EBIT Next 5Y29.64%
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
What is the fundamental rating for LLY stock?
ChartMill assigns a fundamental rating of 7 / 10 to LLY.
What is the valuation status for 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.
What is the financial health of ELI LILLY & CO (LLY) stock?
The financial health rating of ELI LILLY & CO (LLY) is 5 / 10.
What is the expected EPS growth for ELI LILLY & CO (LLY) stock?
The Earnings per Share (EPS) of ELI LILLY & CO (LLY) is expected to grow by 80.9% in the next year.