Eli Lilly and Co
Find Ratings ReportsLILLY (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 ($mil) | 5824.3 | 5404.8 |
| EBITDA ($mil) | 1726.1 | 1355.0 |
| EBIT ($mil) | 1330.5 | 981.3 |
| Net Income ($mil) | 1008.0 | 747.7 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 5434.1 | 3934.8 |
| Total Assets ($mil) | 40946.5 | 36475.3 |
| Total Debt ($mil) | 12312.1 | 9331.3 |
| Equity ($mil) | 14100.8 | 14637.3 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 80.43 | 79.81 |
| EBITDA Margin | 29.63 | 25.07 |
| Operating Margin | 22.84 | 18.16 |
| Sales Turnover | 0.54 | 0.56 |
| Return on Assets | 5.97 | 6.76 |
| Return on Equity | 17.35 | 16.84 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 1.39 | 1.54 |
| Debt/Capital | 0.47 | 0.39 |
| Interest Expense | 69.9 | 57.2 |
| Interest Coverage | 19.03 | 17.16 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 1100.99 | 1103.84 |
| Div / share | 0.52 | 0.51 |
| EPS | 0.95 | 0.71 |
| Book value / share | 12.81 | 13.26 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3662023.0 | 3835339.0 |
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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Sales |
|
Sales Growth |
|
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| 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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