Eli Lilly and Co

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LLY : NYSE : Health Care
$77.8 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 3540100.0
08/17/17 - 4:02 PM ET

Financial Analysis


LILLY (ELI) & CO's gross profit margin for the second quarter of its fiscal year 2017 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 industry this quarter as compared to the same quarter a year ago. LILLY (ELI) & CO has weak liquidity. Currently, the Quick Ratio is 0.92 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 3.66% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)5824.35404.8
EBITDA ($mil)1726.11355.0
EBIT ($mil)1330.5981.3
Net Income ($mil)1008.0747.7


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)5434.13934.8
Total Assets ($mil)40946.536475.3
Total Debt ($mil)12312.19331.3
Equity ($mil)14100.814637.3


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin80.4379.81
EBITDA Margin29.6325.07
Operating Margin22.8418.16
Sales Turnover0.540.56
Return on Assets5.976.76
Return on Equity17.3516.84
Debt Q2 FY17 Q2 FY16
Current Ratio1.391.54
Debt/Capital0.470.39
Interest Expense69.957.2
Interest Coverage19.0317.16


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)1100.991103.84
Div / share0.520.51
EPS0.950.71
Book value / share12.8113.26
Institutional Own % n/a n/a
Avg Daily Volume3662023.03835339.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 28.08 for the Pharmaceuticals industry and a significant premium compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 6.41 indicates a significant premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 16.44. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LLY 35.52 Peers 28.08   LLY 15.05 Peers 25.61

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

LLY is trading at a significant premium 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 significant discount 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 18.23 Peers 14.98   LLY 0.58 Peers 0.61

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LLY 6.41 Peers 16.44   LLY -0.44 Peers 25.27

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LLY 4.11 Peers 6.45   LLY 6.79 Peers 8.29

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 trails its peers on the basis of sales growth

 

 

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