LILLY (ELI) & CO's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. LILLY (ELI) & CO has average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.63% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||4875.6||5772.6|
|Net Income ($mil)||500.6||1203.1|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||4809.9||5379.3|
|Total Assets ($mil)||34648.8||33965.6|
|Total Debt ($mil)||5605.6||5282.9|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||81.04||85.29|
|Return on Assets||7.76||14.08|
|Return on Equity||15.22||28.33|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||1063.43||1126.65|
|Div / share||0.49||0.49|
|Book value / share||16.62||14.99|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4557042.0||3692650.0|
BUY. The current P/E ratio indicates a discount compared to an average of 32.76 for the Pharmaceuticals industry and a premium compared to the S&P 500 average of 19.99. To use another comparison, its price-to-book ratio of 4.36 indicates a significant premium versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 6.99. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, LILLY (ELI) & CO proves to trade at a discount to investment alternatives within the industry.
|LLY 28.98||Peers 32.76||LLY 15.56||Peers 19.66|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
LLY is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
LLY is trading at a discount to its peers.
|LLY 22.78||Peers 18.43||LLY NM||Peers 0.62|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
LLY is trading at a significant premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
LLY's negative PEG ratio makes this valuation measure meaningless.
|LLY 4.36||Peers 6.99||LLY -42.93||Peers -11.58|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
LLY is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, LLY is expected to significantly trail its peers on the basis of its earnings growth rate.
|LLY 3.79||Peers 6.30||LLY -12.72||Peers 10.30|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
LLY is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
LLY significantly trails its peers on the basis of sales growth
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