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 Rating5.3/10
Generated at:2026-06-11 17:41:34
Analysis based on 5 financial reports from periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-11 close. Data includes 60-day trading range information. All financial metrics are derived from the company's quarterly reports and market data.
Overview

Eli Lilly and Company (LLY) is a major global pharmaceutical company with strong focus on diabetes treatments and other therapeutic areas. The analysis reveals a dichotomy between exceptional fundamental performance in profitability and concerning valuation metrics. The company demonstrates explosive growth in revenue and profits with outstanding margins, but faces high financial leverage and extreme valuation multiples that price in perfection.

Valuation
2/10
Profitability
9/10
Financial health
5/10
Operation Advice
  • For existing shareholders, the strong fundamentals may justify maintaining the position to capture potential future growth, but be aware of the high valuation risk.
  • For potential new investors, the current price presents an unfavorable risk/reward profile.
  • The stock is overvalued based on standard metrics, and entering at this level carries significant downside risk if growth moderates or market sentiment shifts.
  • A more attractive entry point would require a meaningful pullback in the share price.

Valuation

P/E TTM
36.01
P/E LYR
91.43
P/B MRQ
29.17
P/S TTM
--
AI Analysis
  • Valuation metrics reflect a market pricing in phenomenal growth, resulting in premium multiples. Based on traditional absolute valuation metrics (P/E, P/B, P/S), Eli Lilly's stock appears significantly overvalued with minimal margin of safety at current levels.
  • Current Price: $1,160.95 (as of 2026-06-11 close)
  • P/E (TTM): 36.01 based on trailing twelve-month earnings
  • Forward P/E (Dynamic): 91.43, reflecting market expectations for continued explosive earnings growth
  • Price-to-Book (P/B): 29.17, an extremely high ratio indicating market values the company far above its accounting book value
  • Price-to-Sales (P/S): 15.13, a very high multiple signaling strong investor confidence in future revenue growth
  • Recent 60-day trading range: low of approximately $850.51 (2026-04-29) to high of $1182.73 (2026-06-08)
  • Current price near $1,160 is towards the upper end of this recent range
  • Based on traditional absolute valuation metrics (P/E, P/B, P/S), Eli Lilly's stock appears significantly overvalued
  • The market is assigning an extreme growth premium
  • The stock's value is entirely contingent on the company's ability to meet or exceed the lofty growth expectations embedded in its current price
Valuation trend

Profitability

ROE TTM
108.36%
Net margin
37.36%
Gross margin
81.93%
Total revenue
19.80B
AI Analysis
  • Eli Lilly is demonstrating exceptionally strong and accelerating profitability, with explosive revenue and profit growth, significant margin expansion, and extraordinarily high returns on capital.
  • Revenue and profit growth are explosive, with Q1 2026 showing year-over-year revenue growth of 55.54%
  • Net income growth of 168.07% in Q1 2026
  • This acceleration is consistent across recent quarters
  • Profitability metrics are outstanding with very high gross margin of 81.93% (Q1 2026)
  • Net margin has expanded significantly to 37.36% in Q1 2026, up from 21.68% in Q1 2025
  • Margin expansion indicates excellent operational efficiency and pricing power for its key drugs
  • Return on Equity (ROE-TTM) is 108.36%, an extraordinarily high figure
  • Return on Assets (ROA-TTM) is 24.77%, also exceptionally high for any industry
  • These high returns reflect both high profitability and significant financial leverage
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
  • Financial health shows a mixed picture with adequate short-term liquidity but high financial leverage, with a debt-to-asset ratio of 73.24% indicating significant financial risk.
  • The company maintains adequate short-term liquidity with a current ratio of 1.50
  • Quick ratio of 1.10 suggests it can comfortably meet its short-term obligations
  • Primary concern lies in its capital structure with Debt-to-Asset ratio of 73.24%
  • High degree of financial leverage increases financial risk
  • High debt level is common in capital-intensive industries like pharmaceuticals for funding R&D and expansion
  • High leverage is especially concerning in a rising interest rate environment
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset82.27%81.82%79.25%76.41%73.24%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.371.281.551.581.50