Eli Lilly (LLY)
Health Care · $1.07T market cap · SEC CIK 0000059478
fundamentals score out of 100
Next reports on Oct 29, 2026, with analysts expecting $10.01 in earnings per share.
The case for LLY
- Revenue up 49.6% on the year.
- Earns 93% on shareholder equity.
- 34% of revenue drops through to net profit.
- Earnings per share up 94.6%.
- Has compounded revenue at 21.6% a year over five years.
- Gross margin of 83% absorbs cost shocks.
The case against
- Pricey at 40.2× earnings, against a long-run market average nearer 20×.
- Priced at 13.5× sales, which leaves no room for a stumble.
- Priced at 33× book value. Very little hard asset backing here.
- Long-term debt of $40.9B against $7.3B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 15 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 94 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 94 |
| Momentumhow the price has behaved lately | 76 |
| Stabilityhow violently it moves, what it owes and what it pays you | 64 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 40.2× |
|---|---|
| Price / book | 33.34× |
| Price / sales | 13.5× |
| Revenue growth (YoY) | +49.6% |
| EPS growth (YoY) | +94.6% |
| Gross margin | 83% |
| Operating margin | 42% |
| Net margin | 34% |
| Return on equity | 93% |
| Debt / equity | 1.62× |
| Current ratio | 1.35 |
| Dividend yield | 0.75% |
| Beta | 0.43 |
| 52-week range | $712.05 – $1,293 |
| Position in that range | 79% of the way up |
| 3-month return | +6.0% |
| 1-year return | +54.9% |
Five years of financials, as filed
Pulled from Eli Lilly's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $65.2B | $45.0B | $34.1B | $28.5B | $28.3B |
| Net income | $20.6B | $10.6B | $5.2B | $6.2B | $5.6B |
| Operating cash flow | $16.8B | $8.8B | $4.2B | $7.6B | $7.4B |
| Total assets | $112B | $78.7B | $64.0B | $49.5B | $48.8B |
| Shareholder equity | $26.5B | $14.3B | $10.8B | $10.6B | $9.0B |
| Cash | $7.3B | $3.3B | $2.8B | $2.1B | $3.8B |
| Long-term debt | $40.9B | $28.5B | $18.3B | $14.7B | $15.3B |
| Net margin | 31.7% | 23.5% | 15.4% | 21.9% | 19.7% |
| Diluted shares | 899M | 904M | 903M | 905M | 912M |
Share count is essentially flat over 4 years.
What Eli Lilly says it does
Eli Lilly and Company (referred to as the company, Lilly, we, or us) was incorporated in 1901 in Indiana to succeed to the drug manufacturing business founded in Indianapolis, Indiana, in 1876 by Colonel Eli Lilly. We discover, develop, manufacture, and market products in a single business segment—human pharmaceutical products. Our purpose is to unite caring with discovery to create medicines that make life better for people around the world. Our long-term success depends on our ability to continually discover or acquire, develop, and commercialize innovative medicines. We manufacture and distribute our products through facilities in the United States (U.S.), including Puerto Rico, and in Europe and Asia. Our products are sold in approximately 90 countries. Products Our products include: Therapeutic area Products Certain Indications Cardiometabolic Health products Basaglar In collaboration with Boehringer Ingelheim, a long-acting human…
Risk factors LLY lists in its 10-K
- Risks Related to Our Business and Industry
- We and our products face intense competition, and such competition could have a material adverse effect on our business
- Pharmaceutical products can develop safety or efficacy concerns, which could have a material adverse effect on our revenues, income, and reputation
- We derive a significant percentage of our total revenue from relatively few products and sell our products through consolidated supply chain entities, which subjects us to various risks
- Risks Related to Our Intellectual Property
- Our long-term success depends on intellectual property protection; if our intellectual property rights are invalidated, circumvented, or weakened, our business will be adversely affected
- Manufacturing, quality, or supply chain difficulties, disruptions, or shortages could lead to product supply problems or other negative outcomes
- Reliance on third-party relationships and outsourcing arrangements could adversely affect our business
- Our use of artificial intelligence (AI) or other emerging technologies could adversely impact us
- Risks Related to Doing Business Internationally
- Our global operations subject us to risks, including as related to uneven economic growth or downturns, international trade, and other global disruptions, geopolitical tensions, or disputes
- Changes in foreign currency rates, interest rate risks, and inflation or deflation affect our results of operations
- Risks Related to Litigation and Government Regulation
- We are party to litigation and investigations, which could adversely affect our business