Eli Lilly (LLY) Stock Analysis
Here is a fundamental analysis of Eli Lilly (LLY), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: LLY | Industry group median |
|---|---|---|
| 1-Year Return | 40.51% | 44.56% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: LLY | Industry group median |
|---|---|---|
| 1-Year Volatility | 38.09% | 67.11% |
| Beta | 0.51 | 0.93 |
Company Profile
| Profile Item | LLY |
|---|---|
| Name | Eli Lilly and Company |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Pharmaceuticals |
| GICS Sub-Industry | Pharmaceuticals |
| Market Capitalization | 1,010.34 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | June 1, 1972 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Eli Lilly (LLY) trades at P/E ratio of 40.32, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
40.32
Group distribution
- Max
- 77.14
- Q3
- 43.78
- LLY
- 40.32
- Median
- 24.68
- Q1
- 15.27
- Min
- 1.70
Largest peers
- ABBV
- 111.09
- LLY
- 40.32
- MRK
- 33.54
- JNJ
- 27.94
- AZN
- 26.96
- NVS
- 21.93
- NVO
- 10.30
Price-to-Sales Ratio (TTM)
Eli Lilly (LLY) trades at 13.98 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
13.98
Group distribution
- Max
- 55.38
- Q3
- 24.42
- LLY
- 13.98
- Median
- 6.98
- Q1
- 3.30
- Min
- 0.01
Largest peers
- LLY
- 13.98
- ABBV
- 6.40
- JNJ
- 6.02
- NVS
- 5.16
- AZN
- 4.59
- MRK
- 4.47
- NVO
- 0.59
Price-to-Book Ratio (MRQ)
Eli Lilly (LLY) trades at 32.45 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
32.45
Group distribution
- LLY
- 32.45
- Max
- 13.23
- Q3
- 6.38
- Median
- 3.46
- Q1
- 1.64
- Min
- -5.17
Largest peers
- LLY
- 32.45
- NVS
- 7.58
- JNJ
- 7.14
- MRK
- 6.41
- NVO
- 6.22
- AZN
- 5.85
- ABBV
- -60.45
Valuation at a Glance
| Metric | Current stock: LLY | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 40.32 | 24.68 |
| Price-to-Sales Ratio (TTM) | 13.98 | 6.98 |
| Price-to-Book Ratio (MRQ) | 32.45 | 3.46 |
| Free Cash Flow Yield | 0.91% | -2.37% |
Profitability
Return on Equity (TTM)
Eli Lilly (LLY) posts ROE of 107.46%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
107.46%
Group distribution
- LLY
- 107.46%
- Max
- 101.32%
- Q3
- 2.92%
- Median
- -31.26%
- Q1
- -62.68%
- Min
- -158.89%
Largest peers
- LLY
- 107.46%
- NVO
- 71.40%
- NVS
- 34.93%
- JNJ
- 26.42%
- AZN
- 23.48%
- MRK
- 18.94%
- ABBV
- --
Net Profit Margin (TTM)
Eli Lilly (LLY) keeps 34.99% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
34.99%
Group distribution
- LLY
- 34.99%
- Max
- 12.76%
- Q3
- 4.00%
- Median
- 0.00%
- Q1
- -2.26%
- Min
- -11.53%
Largest peers
- NVO
- 37.21%
- LLY
- 34.99%
- NVS
- 23.92%
- JNJ
- 21.83%
- AZN
- 17.19%
- MRK
- 13.59%
- ABBV
- 5.79%
Operating Profit Margin (TTM)
Eli Lilly (LLY) turns 49.39% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
49.39%
Group distribution
- Max
- 100.30%
- LLY
- 49.39%
- Q3
- 4.40%
- Median
- 0.00%
- Q1
- -131.52%
- Min
- -333.43%
Largest peers
- NVO
- 61.57%
- LLY
- 49.39%
- MRK
- 38.60%
- ABBV
- 32.16%
- NVS
- 30.48%
- AZN
- 27.94%
- JNJ
- 27.41%
Profitability at a Glance
| Metric | Current stock: LLY | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 107.46% | -31.26% |
| Return on Assets (TTM) | 20.74% | -14.70% |
| Net Profit Margin (TTM) | 34.99% | 0.00% |
| Operating Profit Margin (TTM) | 49.39% | 0.00% |
| Gross Profit Margin (TTM) | 82.83% | 33.58% |
Financial Strength
Current Ratio (MRQ)
Eli Lilly (LLY) has current ratio of 1.50, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
1.50
Group distribution
- Max
- 24.81
- Q3
- 11.75
- Median
- 5.57
- Q1
- 2.69
- LLY
- 1.50
- Min
- 0.23
Largest peers
- LLY
- 1.50
- MRK
- 1.30
- JNJ
- 1.03
- AZN
- 0.91
- NVS
- 0.85
- ABBV
- 0.80
- NVO
- 0.79
Debt-to-Equity Ratio (MRQ)
Eli Lilly (LLY) has debt-to-equity ratio of 1.39, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
1.39
Group distribution
- Max
- 1.60
- LLY
- 1.39
- Q3
- 0.68
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Largest peers
- LLY
- 1.39
- NVS
- 1.21
- MRK
- 1.07
- NVO
- 0.72
- AZN
- 0.72
- JNJ
- 0.68
- ABBV
- --
Financial Strength at a Glance
| Metric | Current stock: LLY | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.50 | 5.57 |
| Debt-to-Equity Ratio (MRQ) | 1.39 | 0.15 |
| Net Debt / EBITDA | 1.05 | 1.09 |
Dividends
Dividend Yield (TTM)
Eli Lilly (LLY) has dividend yield of 0.61%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.61%
Group distribution
- LLY
- 0.61%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- NVO
- 4.11%
- NVS
- 3.10%
- ABBV
- 3.04%
- MRK
- 2.86%
- JNJ
- 2.23%
- AZN
- 1.77%
- LLY
- 0.61%
Dividend Payout Ratio (TTM)
Eli Lilly (LLY) has payout ratio of 22.13%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.
LLY
Pharmaceuticals, Biotechnology & Life Sciences industry group
22.13%
Group distribution
- LLY
- 22.13%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- ABBV
- 325.98%
- MRK
- 93.52%
- NVS
- 67.91%
- JNJ
- 60.25%
- AZN
- 47.70%
- NVO
- 42.59%
- LLY
- 22.13%
Dividends at a Glance
| Metric | Current stock: LLY | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.61% | 0.00% |
| Dividend Payout Ratio (TTM) | 22.13% | 0.00% |