Eli Lilly and CompanyLLY
NYQ • Healthcare
$1244.40
P/E
41.66
PEG
1.65
FCF Yield
0.5%
Rev Growth YoY
+47.7% YoY
Gross Margin
85.8%
Health Score
7/10
D/E Ratio
1.62
Confidence
MEDIUM
Business Snapshot
Eli Lilly is a major pharmaceutical manufacturer operating across the healthcare sector, with its revenue base anchored in the drug manufacturing industry. The company is a dominant player in its market, evidenced by a market capitalisation of $1.11T, placing it firmly in the large-cap tier alongside only a handful of global pharmaceutical peers. On a trailing twelve-month basis, the company generated $79.67B in revenue with net income of $26.71B, underscoring substantial financial scale. The company stands out for its extraordinary profitability profile, with a trailing net margin of 33.5% and a return on equity of 102.3%, reflecting a highly efficient capital base and strong pricing power in its therapeutic franchises.
Financial Health
Gross margin stands at 85.8%, up from 81.9% in the prior year, while net margin (TTM) is 33.5%, indicating both strong profitability and improving pricing or cost dynamics. The balance sheet is moderately leveraged with a debt/equity ratio of 1.62x, while the current ratio of 1.35x suggests adequate short-term liquidity without being a fortress profile...
Risk Assessment
- VALUATION — P/E of 41.66x is significantly above the sector average of 24.9x, implying the market is pricing in exceptional future growth.
- FCF / CASH BURN — FCF yield of 0.5% on $5.96B of free cash flow is extremely low relative to the $1.11T market capitalisation, meaning cash generation is thin relative to the price paid.
- VALUATION DIVERGENCE — The gap between the current price of $1,244.40 and the Python DCF estimate of $318.20 is approximately 291%, far exceeding any reasonable range for model uncertainty.
- DEBT / LIQUIDITY — Debt/equity of 1.62x indicates a meaningfully leveraged balance sheet for a company with a low FCF yield, potentially limiting financial flexibility.
- INSIDER ACTIVITY — 2 insider sells versus 0 buys over the last 90 days signals a cautious stance from those closest to the business.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 85.8%, up from 81.9% in the prior year, while net margin (TTM) is 33.5%, indicating both strong profitability and improving pricing or cost dynamics. The balance sheet is moderately leveraged with a debt/equity ratio of 1.62x, while the current ratio of 1.35x suggests adequate short-term liquidity without being a fortress profile. Free cash flow is positive at $5.96B, though the FCF yield of just 0.5% relative to the $1.11T market cap is extremely thin, meaning the market is paying a substantial premium for each dollar of generated cash. Overall, the company is highly profitable and cash-generative, but the low FCF yield and elevated leverage suggest limited room for shareholder return expansion relative to the valuation at which the stock trades.
- VALUATION — P/E of 41.66x is significantly above the sector average of 24.9x, implying the market is pricing in exceptional future growth. - FCF / CASH BURN — FCF yield of 0.5% on $5.96B of free cash flow is extremely low relative to the $1.11T market capitalisation, meaning cash generation is thin relative to the price paid. - VALUATION DIVERGENCE — The gap between the current price of $1,244.40 and the Python DCF estimate of $318.20 is approximately 291%, far exceeding any reasonable range for model uncertainty. - DEBT / LIQUIDITY — Debt/equity of 1.62x indicates a meaningfully leveraged balance sheet for a company with a low FCF yield, potentially limiting financial flexibility. - INSIDER ACTIVITY — 2 insider sells versus 0 buys over the last 90 days signals a cautious stance from those closest to the business. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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