LLYNEUTRAL

LLY FCF Yield Analysis

0.5%

Higher than 12% of Healthcare sector peers

Updated 125h ago·SEC filings & market data

Key Takeaway

FCF yield measures a company's free cash flow per share relative to its stock price, so at 0.6%, Eli Lilly generates very little cash flow for each dollar of market value.

Sector Performance

12th percentile

LLY

0.5%

Sector Median

3.4%

Sector Avg

-16.2%

Prior Period

0.6%(Aug 2026)

↓ Declining

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Deep Analysis

FCF yield measures a company's free cash flow per share relative to its stock price, so at 0.6%, Eli Lilly generates very little cash flow for each dollar of market value.

That sits well below the healthcare sector median of 3.4%, placing the company at the 12th percentile among peers, meaning roughly 88% of sector firms offer a higher cash return. The trend is N/A: there is no year-over-year change, no quarter-over-quarter change, and no historical data beyond the current 0.6% figure. A low yield combined with an absent trend leaves limited room to assess momentum, but the level itself suggests investors are paying a high price for current cash generation. That pricing already reflects expectations of future growth, which adds valuation risk if those expectations are not met. This metric does not support a positive case; it contradicts the overall NEUTRAL verdict by highlighting a weak cash-return profile, though the neutral stance may account for other growth factors.

Frequently Asked Questions

What does the FCF Yield tell investors about LLY?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does LLY's FCF Yield compare to its sector?

LLY's FCF Yield of 0.5% compares to a Healthcare sector median of 3.4%, placing it in the 12th percentile.

Who are LLY's closest peers by FCF Yield?

The closest Healthcare peers by FCF Yield include: ABT (3.4%), CAH (3.3%), BIO (3.9%), A (2.8%), RVTY (4.2%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.