Eli Lilly and Co
Find Ratings ReportsLILLY (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 ($mil) | 5228.3 | 4865.1 |
| EBITDA ($mil) | 1514.9 | 1232.7 |
| EBIT ($mil) | 1128.0 | 847.2 |
| Net Income ($mil) | -110.8 | 440.1 |
| Balance Sheet | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 3505.6 | 2995.0 |
| Total Assets ($mil) | 37624.3 | 34691.8 |
| Total Debt ($mil) | 10246.8 | 8125.9 |
| Equity ($mil) | 14031.0 | 15009.9 |
| Profitability | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Gross Profit Margin | 82.2 | 80.73 |
| EBITDA Margin | 28.97 | 25.33 |
| Operating Margin | 21.57 | 17.41 |
| Sales Turnover | 0.57 | 0.58 |
| Return on Assets | 5.81 | 6.68 |
| Return on Equity | 15.58 | 15.44 |
| Debt | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Current Ratio | 1.24 | 1.6 |
| Debt/Capital | 0.42 | 0.35 |
| Interest Expense | 58.1 | 56.8 |
| Interest Coverage | 19.41 | 14.92 |
| Share Data | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Shares outstanding (mil) | 1103.39 | 1103.84 |
| Div / share | 0.52 | 0.51 |
| EPS | -0.1 | 0.41 |
| Book value / share | 12.72 | 13.6 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3874640.0 | 4024300.0 |
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.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| 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. |
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| Price/Book |
|
Earnings Growth |
|
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| 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. |
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| Price/Sales |
|
Sales Growth |
|
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| LLY 4.31 | Peers 12.35 | LLY 6.96 | Peers 5.60 | |||||||||||||||||||||
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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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