Eli Lilly and Co

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LLY : NYSE : Health Care
$80.96 -0.24 | -0.3%
Today's Range: 80.93 - 81.71
Avg. Daily Volume: 3831500.0
04/26/17 - 4:00 PM ET

Financial Analysis


LILLY (ELI) & CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. LILLY (ELI) & CO has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.86% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)5760.55375.6
EBITDA ($mil)1398.41087.2
EBIT ($mil)1053.8743.8
Net Income ($mil)771.8478.4


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)6038.64451.8
Total Assets ($mil)38805.935568.9
Total Debt ($mil)10305.27978.5
Equity ($mil)14007.714571.3


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin80.5380.55
EBITDA Margin24.2720.22
Operating Margin18.2913.84
Sales Turnover0.550.56
Return on Assets7.056.77
Return on Equity19.5416.52
Debt Q4 FY16 Q4 FY15
Current Ratio1.371.53
Debt/Capital0.420.35
Interest Expense60.656.7
Interest Coverage17.3913.12


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1050.881055.27
Div / share0.510.5
EPS0.730.45
Book value / share13.3313.81
Institutional Own % n/a n/a
Avg Daily Volume3897013.06358755.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 43.90 for the Pharmaceuticals industry and a premium compared to the S&P 500 average of 24.92. To use another comparison, its price-to-book ratio of 6.15 indicates a significant premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 13.69. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LLY 31.76 Peers 43.90   LLY 17.75 Peers 18.53

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

LLY is trading at a significant discount to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LLY 18.71 Peers 14.49   LLY 0.54 Peers 1.33

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LLY 6.15 Peers 13.69   LLY 14.15 Peers -1.54

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

LLY is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LLY 4.06 Peers 15.95   LLY 6.33 Peers 4.95

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

LLY has a sales growth rate that significantly exceeds its peers.

 

 

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