Eli Lilly and Company
Eli Lilly and Company Fundamental Analysis
Eli Lilly and Company (LLY) shows moderate financial fundamentals with a PE ratio of 35.36, profit margin of 34.98%, and ROE of 1.01%. The company generates $76.1B in annual revenue with strong year-over-year growth of 44.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LLY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLLY demonstrates superior asset utilization.
Valuation Score
ModerateLLY shows balanced valuation metrics.
Growth Score
ExcellentLLY delivers strong and consistent growth momentum.
Financial Health Score
ModerateLLY shows balanced financial health with some risks.
Profitability Score
ExcellentLLY achieves industry-leading margins.
Key Financial Metrics
Is LLY Expensive or Cheap?
P/E Ratio
LLY trades at 35.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LLY's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Eli Lilly and Company at 28.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.25 times EBITDA. This signals the market has high growth expectations.
How Well Does LLY Make Money?
Net Profit Margin
For every $100 in sales, Eli Lilly and Company keeps $34.98 as profit after all expenses.
Operating Margin
Core operations generate 45.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.01 in profit for every $100 of shareholder equity.
ROA
Eli Lilly and Company generates $21.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eli Lilly and Company generates strong operating cash flow of $21.56B, reflecting robust business health.
Free Cash Flow
Eli Lilly and Company generates strong free cash flow of $14.30B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.18 in free cash annually.
FCF Yield
LLY converts 1.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
28.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.01
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How LLY Stacks Against Its Sector Peers
| Metric | LLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.36 | 28.62 | Worse (Expensive) |
| ROE | 101.30% | 783.00% | Weak |
| Net Margin | 34.98% | -48181.00% (disorted) | Strong |
| Debt/Equity | 1.39 | 0.39 | Weak (High Leverage) |
| Current Ratio | 1.50 | 4.12 | Neutral |
| ROA | 21.68% | -21914.00% (disorted) | Strong |
LLY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eli Lilly and Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
182.93%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
254.95%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
175.55%
Industry Style: Defensive, Growth, Innovation
High Growth