Eli Lilly and Company(LLY) - Stock detail

Eli Lilly and Company

US
LLY
Eli Lilly and Company(Listing date: 07/09/1970)

Eli Lilly and Company was incorporated in Indiana in 1901, with its predecessor being a pharmaceutical manufacturing enterprise founded by Colonel Eli Lilly in Indianapolis, Indiana in 1876. The company develops, manufactures and markets important pharmaceutical products. Its mission is to combine "Caring" and "Discovery" to create better lives for people around the world.

AI Value AnalystHold
Overall Rating6/10
Generated at:2026-06-03 17:40:47
Analysis based on 5 financial reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31. Data includes company basic information, financial condition, profitability, and valuation metrics. Current price as of 2026-06-03 close.
Overview

Eli Lilly and Company (LLY) is a major global pharmaceutical company experiencing a once-in-a-generation growth phase driven by its GLP-1 agonist drugs. The company demonstrates extraordinary profitability and explosive growth, but its stock is fully valued to overvalued with high financial leverage, presenting a balanced risk/reward profile at the current price.

Valuation
2/10
Profitability
10/10
Financial health
6/10
Operation Advice
  • Existing shareholders should Hold to participate in future growth.
  • New money may find better entry points on market pullbacks, as the margin of safety for new Buy decisions is currently thin.
  • A 12-month fundamental target price range of $1,150 to $1,300 is reasonable, representing approximately 6.6% to 20.5% upside from the current price.

Valuation

P/E TTM
36.01
P/E LYR
91.43
P/B MRQ
29.17
P/S TTM
--
AI Analysis
  • The stock's valuation is at premium levels, reflecting its hyper-growth status and market leadership. Valuation metrics (P/E, P/B, P/S) are at historically high levels, indicating the stock is fully valued to overvalued on a traditional basis.
  • The forward (dynamic) P/E is 91.43, while the trailing (TTM) P/E is 36.01.
  • The Price-to-Book (P/B) ratio is 29.17, which is extremely high, a direct consequence of the sky-high ROE.
  • The Price-to-Sales (P/S) ratio is 14.06 (TTM), also at a premium level, justified by the high net margins.
  • Using the approximated TTM EPS of $56.12 and the current price of $1,078.78 gives a P/E of approximately 19.2, which aligns more closely with the explosive growth rate.
  • The officially reported TTM PE of 36.01 is the authoritative figure.
  • A more normalized, yet still optimistic, forward P/E in the mid-40s to low-50s on next year's projected earnings could be justified.
  • Based on the current growth trajectory, market position, and premium valuation, a 12-month fundamental target price range of $1,150 to $1,300 is reasonable.
Valuation trend

Profitability

ROE TTM
108.36%
Net margin
37.36%
Gross margin
81.93%
Total revenue
19.80B
AI Analysis
  • Eli Lilly and Company is demonstrating extraordinary and accelerating profitability growth, with explosive revenue and earnings growth coupled with significant margin expansion.
  • The most recent Q1 2026 revenue of $19.80B grew 55.54% year-over-year (YoY).
  • Q1 2026 net income grew 168.07% YoY to $7.40B.
  • This pattern of explosive growth is consistent across recent quarters, as seen in the 94.90% annual net income growth for FY 2025.
  • The company maintains exceptionally high and stable gross margins above 81%, reflecting its pricing power and the value of its patented drugs.
  • Net margin has expanded significantly from 21.68% in Q1 2025 to 37.36% in Q1 2026, indicating improved operational efficiency and scalability.
  • Diluted EPS for Q1 2026 was $8.26, a substantial increase from $3.06 in Q1 2025.
  • The TTM EPS can be approximated using the provided data (Q2 2025 to Q1 2026 sum: $9.35 + $15.56 + $22.95 + $8.26 = $56.12).
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--51.87%73.72%101.16%108.36%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue12.73B28.29B45.89B65.18B19.80B

Financial health

Debt/Asset
73.24%
Current ratio
1.50
Quick ratio
1.10
Cash ratio
1.10
AI Analysis
  • The company's financial health shows a mixed but generally robust picture, with strong liquidity and profitability metrics, but notably high financial leverage which increases risk.
  • The current ratio of 1.50 and the quick ratio of 1.10 indicate sufficient short-term liquidity to cover immediate obligations, though the quick ratio suggests a moderate reliance on inventory.
  • The debt-to-asset ratio of 73.24% is notably high, indicating significant financial leverage.
  • High leverage can amplify returns but also increases financial risk, especially in a rising interest rate environment or during economic downturns.
  • This is a key risk factor to monitor.
  • The exceptionally high Return on Equity (ROE) of 108.36% (TTM) is a direct result of this high leverage, showing that the company is generating massive profits relative to shareholder equity.
  • The Return on Assets (ROA) of 24.77% (TTM) is also very strong, indicating efficient use of all assets to generate earnings.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset82.27%81.82%79.25%76.41%73.24%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.371.281.551.581.50