Eli Lilly and Company
Find Ratings ReportsLILLY (ELI) & CO's gross profit margin for the fourth quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. LILLY (ELI) & CO has weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 116.41% 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 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 7440.0 | 6114.0 |
| EBITDA ($mil) | 2695.8 | 1892.6 |
| EBIT ($mil) | 2328.3 | 1551.9 |
| Net Income ($mil) | 2116.8 | 1495.7 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 3681.3 | 2438.5 |
| Total Assets ($mil) | 46633.1 | 39286.1 |
| Total Debt ($mil) | 16595.3 | 15803.9 |
| Equity ($mil) | 5641.6 | 2606.9 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 81.82 | 84.59 |
| EBITDA Margin | 36.23 | 30.95 |
| Operating Margin | 31.29 | 25.38 |
| Sales Turnover | 0.53 | 0.57 |
| Return on Assets | 13.28 | 21.17 |
| Return on Equity | 109.79 | 177.91 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 1.4 | 1.16 |
| Debt/Capital | 0.75 | 0.86 |
| Interest Expense | 89.2 | 95.9 |
| Interest Coverage | 26.1 | 16.18 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 906.59 | 907.53 |
| Div / share | 0.74 | 0.65 |
| EPS | 2.32 | 1.64 |
| Book value / share | 6.22 | 2.87 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4398686.0 | 3994515.0 |
BUY. LILLY (ELI) & CO's P/E ratio indicates a significant discount compared to an average of 53.90 for the Chemical Manufacturing subsector and a significant discount compared to the S&P 500 average of 43.53. For additional comparison, its price-to-book ratio of 29.34 indicates a significant premium versus the S&P 500 average of 4.31 and a significant premium versus the subsector average of 8.58. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. The valuation analysis reveals that, LILLY (ELI) & CO seems to be trading at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LLY 26.85 | Peers 28.45 | LLY 25.47 | Peers 18.55 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. LLY is trading at a valuation on par with its peers. |
Premium. 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 significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| LLY 20.82 | Peers 16.84 | LLY 1.19 | Peers 0.38 | |||||||||||||||||||||
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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. |
Premium. 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 premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| LLY 29.34 | Peers 8.58 | LLY 35.45 | Peers -13.01 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LLY is trading at a significant premium 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. |
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| Price/Sales |
|
Sales Growth |
|
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| LLY 6.75 | Peers 10.93 | LLY 9.94 | Peers 52.74 | |||||||||||||||||||||
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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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LLY significantly trails its peers on the basis of sales growth. |
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