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
Interest Expense58.156.8
Interest Coverage19.4114.92

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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