Eli Lilly and Co

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LLY : NYSE : Health Care
$83.89 | %
Today's Range: 83.71 - 84.34
Avg. Daily Volume: 3898500.0
06/23/17 - 4:03 PM ET

Financial Analysis


LILLY (ELI) & CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. LILLY (ELI) & CO has weak liquidity. Currently, the Quick Ratio is 0.78 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 decreased by 6.52% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)5228.34865.1
EBITDA ($mil)1514.91232.7
EBIT ($mil)1128.0847.2
Net Income ($mil)-110.8440.1


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)3505.62995.0
Total Assets ($mil)37624.334691.8
Total Debt ($mil)10246.88125.9
Equity ($mil)14031.015009.9


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin82.280.73
EBITDA Margin28.9725.33
Operating Margin21.5717.41
Sales Turnover0.570.58
Return on Assets5.816.68
Return on Equity15.5815.44
Debt Q1 FY17 Q1 FY16
Current Ratio1.241.6
Debt/Capital0.420.35
Interest Expense58.156.8
Interest Coverage19.4114.92


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1103.391103.84
Div / share0.520.51
EPS-0.10.41
Book value / share12.7213.6
Institutional Own % n/a n/a
Avg Daily Volume3874640.04024300.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 91.01 for the Pharmaceuticals industry and a significant premium compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 6.63 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 10.96. 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 40.73 Peers 91.01   LLY 16.15 Peers 20.41

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.

 

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 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 19.29 Peers 16.75   LLY 0.68 Peers 0.72

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 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 6.63 Peers 10.96   LLY -4.61 Peers 19.17

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 4.31 Peers 12.35   LLY 6.96 Peers 5.60

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 exceeds its peers.

 

 

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