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

0.02%

NYSE:LLY

-0.07%

US Pharmaceuticals

0.8%

US Market


1 Year Return

4.0%

NYSE:LLY

-9.4%

US Pharmaceuticals

1.9%

US Market

LLY outperformed the Pharmaceuticals industry which returned -8.5% over the past year.

LLY outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

LLYIndustryMarket
7 Day0.02%-0.07%0.8%
30 Day0.5%0.4%3.4%
90 Day-3.6%-5.8%2.1%
1 Year6.2%4.0%-7.2%-9.4%4.2%1.9%
3 Year49.8%39.1%12.3%4.4%46.7%37.2%
5 Year91.4%68.5%20.8%7.9%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Eli Lilly's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Eli Lilly's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Eli Lilly is overvalued based on earnings compared to the US Pharmaceuticals industry average.

Eli Lilly is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Eli Lilly is poor value based on expected growth next year.


Price Based on Value of Assets

Eli Lilly is overvalued based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

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

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Eli Lilly's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Eli Lilly's earnings are expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).

Eli Lilly's revenue growth is positive but not above the United States of America market average.

Eli Lilly's earnings growth is positive but not above the United States of America market average.

Eli Lilly's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Eli Lilly is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


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

Eli Lilly's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Eli Lilly has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Eli Lilly has become profitable in the last year making it difficult to compare the US Pharmaceuticals industry average.


Return on Equity

Whilst Eli Lilly made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Eli Lilly used its assets more efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Eli Lilly has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Eli Lilly's financial position?


Financial Position Analysis

Eli Lilly is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Eli Lilly's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Eli Lilly's level of debt (553.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (29.6% vs 553.4% today).

Debt is well covered by operating cash flow (31.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Eli Lilly's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Eli Lilly's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Dave Ricks (51yo)

2.7yrs

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

Dave's remuneration is higher than average for companies of similar size in United States of America.

Dave's compensation has increased in line with Eli Lilly recently becoming profitable.


Management Age and Tenure

3.2yrs

Average Tenure

52yo

Average Age

The tenure for the Eli Lilly management team is about average.


Board Age and Tenure

9.1yrs

Average Tenure

60.5yo

Average Age

The tenure for the Eli Lilly board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
SellUS$19,783,62318 Oct 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares174,696
Max PriceUS$113.25
SellUS$1,237,01310 Oct 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares10,672
Max PriceUS$115.91
SellUS$1,696,03909 Oct 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares14,632
Max PriceUS$115.91
SellUS$13,073,95005 Oct 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares116,038
Max PriceUS$115.51
SellUS$8,607,25304 Oct 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares78,962
Max PriceUS$109.01
SellUS$11,541,08201 Oct 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares107,553
Max PriceUS$107.31
SellUS$9,891,64428 Sep 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares92,447
Max PriceUS$107.00
SellUS$14,332,37327 Sep 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares134,410
Max PriceUS$107.32
SellUS$5,915,16526 Sep 18
Lilly Endowment, Inc, Endowment Arm
EntityCompany
Shares55,590
Max PriceUS$106.41

Ownership Breakdown


Management Team

  • Dave Ricks (51yo)

    Chairman

    • Tenure: 2.7yrs
    • 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: 11.7yrs
    • Compensation: US$5.38m
  • Don Zakrowski

    Chief Accounting Officer & VP of Finance

    • Tenure: 6.8yrs
  • Enrique Conterno (52yo)

    Senior VP & President of Lilly Diabetes and Lilly USA

    • Tenure: 9.8yrs
    • Compensation: US$5.00m
  • Josh Smiley (49yo)

    Senior VP & CFO

    • Tenure: 1.7yrs
    • Compensation: US$5.25m
  • Mike Harrington (56yo)

    Senior VP & General Counsel

    • Tenure: 6.7yrs
    • Compensation: US$5.44m
  • Aarti Shah (54yo)

    Senior VP of Information Technology & Chief Information and Digital Officer

    • Tenure: 3.2yrs
  • Martin Bott (56yo)

    Vice President of Finance & Special Projects

    • Tenure: 2.7yrs
  • Kristina Wright

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Mike Eskew (69yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$315.00k
  • Kathi Seifert (69yo)

    Director

    • Tenure: 24.7yrs
    • Compensation: US$294.00k
  • Sidney Taurel (70yo)

    Chairman Emeritus

    • Tenure: 10.7yrs
    • Compensation: US$13.06m
  • J. Fyrwald (60yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$298.00k
  • Raul Alvarez (64yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: US$306.00k
  • Bill Kaelin (61yo)

    Director

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

    Chairman

    • Tenure: 2.7yrs
    • Compensation: US$17.23m
  • Juan Luciano (58yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$299.00k
  • Kate Baicker (47yo)

    Director

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

    Director

    • Tenure: 2.9yrs
    • 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$101.723b
  • 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 Analysis2019/09/17 23:43
End of Day Share Price2019/09/17 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.