NYSE:LLY

Stock Analysis Report

Executive Summary

Eli Lilly and Company discovers, develops, manufactures, and markets pharmaceutical products worldwide.

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Eli Lilly's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.009%

LLY

0.06%

US Pharmaceuticals

0.5%

US Market


1 Year Return

-3.7%

LLY

-7.8%

US Pharmaceuticals

6.8%

US Market

Return vs Industry: LLY exceeded the US Pharmaceuticals industry which returned -7.8% over the past year.

Return vs Market: LLY underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

LLYIndustryMarket
7 Day0.009%0.06%0.5%
30 Day-7.1%-1.7%-0.8%
90 Day-0.3%-1.3%-0.9%
1 Year-1.6%-3.7%-5.5%-7.8%9.2%6.8%
3 Year49.8%39.1%18.4%10.1%45.6%36.2%
5 Year85.1%63.0%22.2%9.3%63.2%45.4%

Price Volatility Vs. Market

How volatile is Eli Lilly's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eli Lilly undervalued compared to its fair value and its price relative to the market?

21.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LLY ($107.91) is trading below our estimate of fair value ($138.04)

Significantly Below Fair Value: LLY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LLY is poor value based on its PE Ratio (25.4x) compared to the Pharmaceuticals industry average (16x).

PE vs Market: LLY is poor value based on its PE Ratio (25.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LLY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LLY is overvalued based on its PB Ratio (35.5x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is Eli Lilly forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LLY's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: LLY's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: LLY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LLY's revenue (4.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LLY's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LLY's Return on Equity is forecast to be very high in 3 years time (87.4%).


Next Steps

Past Performance

How has Eli Lilly performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LLY's earnings have declined by -6.9% per year over the past 5 years.

Accelerating Growth: LLY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LLY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (24.3%).


Return on Equity

High ROE: Whilst LLY's Return on Equity (146.46%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: LLY has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: LLY has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Eli Lilly's financial position?


Financial Position Analysis

Short Term Liabilities: LLY's short term assets ($13.5B) exceeds its short term liabilities ($11.9B)

Long Term Liabilities: LLY's short term assets (13.5B) do not cover its long term liabilities (24.0B)


Debt to Equity History and Analysis

Debt Level: LLY's debt to equity ratio (553.4%) is considered high

Reducing Debt: LLY's debt to equity ratio has increased from 29.6% to 553.4% over the past 5 years.

Debt Coverage: LLY's debt is well covered by operating cash flow (31.2%).

Interest Coverage: LLY's interest payments on its debt are well covered by EBIT (28.2x coverage).


Balance Sheet

Inventory Level: LLY has a high level of physical assets or inventory.

Debt Coverage by Assets: LLY's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Eli Lilly's current dividend yield, its reliability and sustainability?

2.39%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LLY's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LLY's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: LLY's dividends per share have been stable in the past 10 years.

Growing Dividend: LLY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.6%), LLY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LLY's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).


Next Steps

Management

What is the CEO of Eli Lilly's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Dave Ricks (51yo)

2.8yrs

Tenure

US$17,230,337

Compensation

Mr. David A. Ricks, also known as Dave, served as a Director of Elanco Animal Health Incorporated until March 2019. He has been the Chief Executive Officer and President of Eli Lilly and Company since Janu ...


CEO Compensation Analysis

Compensation vs. Market: Dave's total compensation ($USD17.23M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

Experienced Management: LLY's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: LLY's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$24,437,72623 Sep 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares210,000
Max PriceUS$116.61
BuyUS$50,28105 Jun 19
Joshua Smiley
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares426
Max PriceUS$118.03
SellUS$26,938,68827 Mar 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares205,000
Max PriceUS$132.02
SellUS$26,971,21504 Mar 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares210,000
Max PriceUS$128.97
SellUS$25,345,01701 Mar 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares200,000
Max PriceUS$127.45
SellUS$24,217,63525 Feb 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares195,000
Max PriceUS$124.19
SellUS$25,108,51320 Feb 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares205,000
Max PriceUS$123.14
SellUS$16,161,28118 Jan 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares136,577
Max PriceUS$118.84
SellUS$195,31517 Jan 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares1,657
Max PriceUS$117.87
SellUS$6,095,13616 Jan 19
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares51,766
Max PriceUS$117.74
SellUS$1,844,53606 Dec 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares15,500
Max PriceUS$119.00
SellUS$21,722,42930 Nov 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares185,000
Max PriceUS$117.89
SellUS$21,957,93929 Nov 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares190,000
Max PriceUS$115.57
SellUS$22,485,57220 Nov 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares195,000
Max PriceUS$115.65
SellUS$22,747,00019 Nov 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares200,000
Max PriceUS$113.74
SellUS$278,97914 Nov 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares2,460
Max PriceUS$113.41
SellUS$22,984,87713 Nov 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares202,540
Max PriceUS$114.40

Ownership Breakdown


Management Team

  • Dave Ricks (51yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: US$17.23m
  • Dan Skovronsky (45yo)

    Senior VP & Chief Scientific Officer

    • Tenure: 1.3yrs
    • Compensation: US$5.15m
  • Jeff Simmons (52yo)

    Senior VP & President of Elanco Animal Health

    • Tenure: 11.8yrs
    • Compensation: US$5.38m
  • Don Zakrowski

    Chief Accounting Officer & VP of Finance

    • Tenure: 6.9yrs
  • Enrique Conterno (52yo)

    Senior VP & President of Lilly Diabetes and Lilly USA

    • Tenure: 9.9yrs
    • Compensation: US$5.00m
  • Josh Smiley (49yo)

    Senior VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$5.25m
  • Mike Harrington (56yo)

    Senior VP & General Counsel

    • Tenure: 6.8yrs
    • Compensation: US$5.44m
  • Aarti Shah (54yo)

    Senior VP of Information Technology & Chief Information and Digital Officer

    • Tenure: 3.3yrs
  • Martin Bott (56yo)

    Vice President of Finance & Special Projects

    • Tenure: 2.8yrs
  • Kevin Hern

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Mike Eskew (69yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$315.00k
  • Kathi Seifert (69yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$294.00k
  • Sidney Taurel (70yo)

    Chairman Emeritus

    • Tenure: 10.8yrs
    • Compensation: US$13.06m
  • J. Fyrwald (60yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$298.00k
  • Raul Alvarez (64yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$306.00k
  • Bill Kaelin (61yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$309.00k
  • Dave Ricks (51yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: US$17.23m
  • Juan Luciano (58yo)

    Lead Independent Director

    • Tenure: 0.4yrs
    • Compensation: US$299.00k
  • Kate Baicker (47yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$302.00k
  • Jamere Jackson (50yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$294.00k

Company Information

Eli Lilly and Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eli Lilly and Company
  • Ticker: LLY
  • Exchange: NYSE
  • Founded: 1876
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$98.784b
  • Shares outstanding: 915.43m
  • Website: https://www.lilly.com

Number of Employees


Location

  • Eli Lilly and Company
  • Lilly Corporate Center
  • Indianapolis
  • Indiana
  • 46285
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LLYNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
LLYSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1969
LLY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
0Q1GLSE (London Stock Exchange)YesCommon StockGBCHFJan 1969
LLYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
LLYXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1969
LLYENXTPA (Euronext Paris)YesCommon StockFREURJan 1969
LLYZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCHFJan 1969
LLYCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
LILY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 0.5 COM NPVBRBRLAug 2012

Biography

Eli Lilly and Company discovers, develops, manufactures, and markets pharmaceutical products worldwide. The company operates in two segments, Human Pharmaceutical Products and Animal Health Products. It of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:39
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.