ELI LILLY & Co (LLY) stock analysis

P/E below its 5-year median

Eli Lilly's P/E of 46.7 is below its own 5-year median of 54.5.

P/E above the industry

Eli Lilly's P/E of 46.7 is above the Drugs median of 25.1.

EV/EBITDA below its 5-year median

Eli Lilly's EV/EBITDA of 37.8 is below its 5-year median of 40.4.

P/B above the industry

Eli Lilly's price-to-book of 33.58 is above the Drugs median of 2.29.

Trading above fair value

The share price of $1437.29 is above our fair value estimate of $1162.06.

Margin of safety under 20%

The price is 23.7% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 31.7% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 49.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 49.8% over the last twelve months, against a 5-year average of 27.2% a year.

Growing faster than the industry

Revenue grew 45.5% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Eli Lilly lowered its full year Earnings per Share outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 83.6% over the last twelve months, against 83.0% a year earlier.

Return on equity over 15%

Return on equity was 86.1% over the last twelve months and averaged 74.9% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Eli Lilly's return on equity of 86.1% is above the Drugs median of -58.8%.

Earnings grew over 5 years

Net income grew 27.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 31.9% over the last twelve months, against a 5-year average of 22.4%.

Net margin above the industry

Eli Lilly's net margin of 31.9% is above the Drugs median of -53.0%.

High debt

Debt is 123% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 294% five years ago to 123%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 61.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.39 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.62; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Eli Lilly paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Eli Lilly yields 0.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 21.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.