Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A . The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.50% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LLY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Pharmaceuticals industry average. The net income increased by 7.3% when compared to the same quarter one year prior, going from $1,236.30 million to $1,326.60 million.
- The gross profit margin for LILLY (ELI) & CO is currently very high, coming in at 77.90%. Regardless of LLY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LLY's net profit margin of 24.40% compares favorably to the industry average.
- LLY, with its decline in revenue, slightly underperformed the industry average of 2.7%. Since the same quarter one year prior, revenues fell by 11.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- LILLY (ELI) & CO has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LILLY (ELI) & CO reported lower earnings of $3.90 versus $4.58 in the prior year. For the next year, the market is expecting a contraction of 13.1% in earnings ($3.39 versus $3.90).
Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. Eli Lilly and has a market cap of $58.26 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 20.8% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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