Eli Lilly and Co

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LLY : NYSE : Health Care
$67.38 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 5419300.0
12/07/16 - 4:01 PM ET

Financial Analysis


LILLY (ELI) & CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LILLY (ELI) & CO has average liquidity. Currently, the Quick Ratio is 1.06 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.41% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)5191.74959.7
EBITDA ($mil)1381.81383.1
EBIT ($mil)989.01024.8
Net Income ($mil)778.0799.7


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)4226.84319.2
Total Assets ($mil)37590.336304.7
Total Debt ($mil)9348.88078.9
Equity ($mil)15589.215221.4


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin80.5882.71
EBITDA Margin26.6127.88
Operating Margin19.0520.66
Sales Turnover0.550.54
Return on Assets6.56.49
Return on Equity15.6715.49
Debt Q3 FY16 Q3 FY15
Current Ratio1.621.51
Debt/Capital0.370.35
Interest Expense58.355.3
Interest Coverage16.9618.53


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1103.951108.08
Div / share0.510.5
EPS0.730.75
Book value / share14.1213.74
Institutional Own % n/a n/a
Avg Daily Volume5356845.03858034.0

Valuation


BUY. LILLY (ELI) & CO's P/E ratio indicates a premium compared to an average of 26.06 for the Pharmaceuticals industry and a premium compared to the S&P 500 average of 25.37. To use another comparison, its price-to-book ratio of 4.76 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 63.67. 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 29.24 Peers 26.06   LLY 20.21 Peers 18.01

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

LLY is trading at a premium to 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 premium 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 16.86 Peers 13.78   LLY 0.52 Peers 0.50

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 4.76 Peers 63.67   LLY 4.07 Peers -15.36

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 3.56 Peers 12.79   LLY 5.74 Peers 5.02

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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