ELI LILLY & CO (LLY) Stock Fundamental Analysis
USA - NYSE:LLY - US5324571083 - Common Stock
1030.05 USD
+8.35 (+0.82%)
1029 USD
-1.05 (-0.1%)
Overall LLY gets a fundamental rating of 7 out of 10. We evaluated LLY against 192 industry peers in the Pharmaceuticals industry. LLY scores excellent on profitability, but there are some minor concerns on its financial health. LLY is not priced too expensively while it is growing strongly. Keep and eye on this one! Finally 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.
In the past 5 years LLY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LLY (16.02%) is better than 96.35% 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.
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 13.48%.
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
LLY has a better Profit Margin (30.99%) than 95.31% 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 98.96% 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 83.03%. This is amongst the best in the industry. LLY outperforms 86.98% 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 | 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.
Compared to 1 year ago, LLY has about the same amount of shares outstanding.
LLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LLY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.14 indicates that LLY is not in any danger for bankruptcy at the moment.
LLY has a better Altman-Z score (8.14) than 83.33% 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 has a better Debt to FCF ratio (6.60) than 79.69% 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.
LLY has a Debt to Equity ratio of 1.72. This is in the lower half of the industry: LLY underperforms 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 8.14 |
ROIC/WACC3.31
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.55 indicates that LLY should not have too much problems paying its short term obligations.
The Current ratio of LLY (1.55) is worse than 70.31% of its industry peers.
LLY has a Quick Ratio of 1.24. This is a normal value and indicates that LLY is financially healthy and should not expect problems in meeting its short term obligations.
LLY has a Quick ratio of 1.24. This is in the lower half of the industry: LLY underperforms 71.35% 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%.
LLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.08% yearly.
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 30.75% yearly.
Based on estimates for the next years, LLY will show a quite strong growth in Revenue. The Revenue will grow by 18.43% on average per year.
EPS Next Y80.9%
EPS Next 2Y54.64%
EPS Next 3Y42.29%
EPS Next 5Y30.75%
Revenue Next Year38.67%
Revenue Next 2Y28.28%
Revenue Next 3Y23.95%
Revenue Next 5Y18.43%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 46.84 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 77.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, LLY is valued quite expensively.
LLY is valuated quite expensively with a Price/Forward Earnings ratio of 33.13.
Based on the Price/Forward Earnings ratio, LLY is valued a bit cheaper than 72.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LLY to the average of the S&P500 Index (34.98), we can say LLY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.84 | ||
| Fwd PE | 33.13 |
4.2 Price Multiples
LLY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LLY is cheaper than 78.13% of the companies in the same industry.
73.96% of the companies in the same industry are more expensive than LLY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 151.47 | ||
| EV/EBITDA | 35.33 |
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.
A more expensive valuation may be justified as LLY's earnings are expected to grow with 42.29% in the coming years.
PEG (NY)0.58
PEG (5Y)2.83
EPS Next 2Y54.64%
EPS Next 3Y42.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, LLY is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.07, LLY pays a better dividend. On top of this LLY pays more dividend than 89.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, LLY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.59%
Div Incr Years10
Div Non Decr Years34
5.3 Sustainability
LLY pays out 28.28% of its income as dividend. This is a sustainable payout ratio.
LLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.28%
EPS Next 2Y54.64%
EPS Next 3Y42.29%
1030.05
+8.35 (+0.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners83.75%
Inst Owner Change-0.95%
Ins Owners0.16%
Ins Owner Change-3.15%
Market Cap974.90B
Revenue(TTM)59.42B
Net Income(TTM)18.41B
Analysts80
Price Target926.82 (-10.02%)
Short Float %0.68%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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)2.49%
PT rev (3m)-6.21%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)2.55%
EPS NY rev (1m)2.48%
EPS NY rev (3m)7.64%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.84 | ||
| Fwd PE | 33.13 | ||
| P/S | 16.41 | ||
| P/FCF | 151.47 | ||
| P/OCF | 60.7 | ||
| P/B | 40.97 | ||
| P/tB | 85.15 | ||
| EV/EBITDA | 35.33 |
EPS(TTM)21.99
EY2.13%
EPS(NY)31.09
Fwd EY3.02%
FCF(TTM)6.8
FCFY0.66%
OCF(TTM)16.97
OCFY1.65%
SpS62.78
BVpS25.14
TBVpS12.1
PEG (NY)0.58
PEG (5Y)2.83
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 | 8.14 |
F-Score7
WACC8.71%
ROIC/WACC3.31
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 5Y30.75%
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 5Y18.43%
EBIT growth 1Y82.81%
EBIT growth 3Y31.18%
EBIT growth 5Y24.1%
EBIT Next Year93.86%
EBIT Next 3Y42.49%
EBIT Next 5Y30.03%
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 6 / 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.