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 Rating5.7/10
Generated at:2026-04-17 17:42:38
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31. Stock price data as of 2026-04-17 with 60-day trading range from 2026-01-22 to 2026-04-17. Data appears complete for fundamental analysis purposes.
Overview

Eli Lilly and Company (LLY) is a major global pharmaceutical company demonstrating exceptional profitability with explosive revenue and net income growth, driven by its blockbuster GLP-1 portfolio. However, the company operates with significant financial leverage and trades at extreme valuation multiples, making the risk/reward profile balanced at the current price.

Valuation
2/10
Profitability
10/10
Financial health
5/10
Operation Advice
  • Hold existing positions given the strong underlying business momentum, but avoid new purchases at current stratospheric valuations due to lack of margin of safety.
  • Monitor for any moderation in growth or negative clinical/regulatory developments that could trigger a severe de-rating.

Valuation

P/E TTM
47.85
P/E LYR
91.43
P/B MRQ
41.51
P/S TTM
--
AI Analysis
  • Valuation metrics indicate the stock is trading at a significant premium with very high multiples (P/E of 47.85, P/B of 41.51, Forward P/E of 91.43), reflecting high growth expectations. Based on traditional metrics, LLY appears significantly overvalued, with valuation entirely dependent on sustained explosive growth.
  • Current Price: As of 2026-04-17, LLY closed at $927.03.
  • Price Range: Based on 60-day trading data, the stock traded between a low of approximately $878.24 and a high of approximately $1107.12.
  • P/E Ratio (TTM): 47.85, which is very high compared to the broader market but may be justified by hyper-growth phase.
  • Forward P/E (Dynamic): 91.43, suggesting analysts expect a significant drop in earnings or that current price factors in long-term growth far into future.
  • Price-to-Book (PB): 41.51, indicating market values intangible assets far above accounting book value.
  • Price-to-Sales (PS-TTM): 13.44, typical for high-margin, high-growth pharmaceutical leaders.
  • Undervalued/Overvalued Assessment: Based on traditional valuation metrics (P/E, P/B, P/S), LLY appears significantly overvalued.
  • Valuation depends on sustained continuation of explosive growth trajectory for GLP-1 drugs; any slowdown or pipeline setbacks could lead to severe de-rating.
Valuation trend

Profitability

ROE TTM
101.16%
Net margin
31.67%
Gross margin
83.04%
Total revenue
65.18B
AI Analysis
  • Eli Lilly is demonstrating exceptional and accelerating profitability with explosive revenue growth (44.70% YoY to $65.18B in 2025) and staggering net income growth (94.90% increase to $20.64B). Margins are extremely high (Gross Margin 83.04%, Net Margin 31.67%) and return metrics outstanding (ROE 101.16%, ROA 21.59%).
  • Growth Trajectory: Revenue growth is explosive; annual revenue for 2025 reached $65.18B, representing 44.70% year-over-year increase.
  • Bottom-Line Performance: 2025 Net Income was $20.64B, a staggering 94.90% increase from 2024, indicating successful scaling and operating leverage.
  • Margins: Company boasts extremely high and improving margins; Gross Margin for 2025 is 83.04%, and Net Margin is 31.67%.
  • Margins reflect premium pricing power and operational efficiency of pharmaceutical portfolio.
  • Return on Capital: Profitability metrics are outstanding; Return on Equity (ROE-TTM) is 101.16%, and Return on Assets (ROA-TTM) is 21.59%.
  • Extraordinarily high ROE is partly amplified by high financial leverage (Debt/Assets of 76.41%).
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--18.42%51.87%73.72%101.16%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue45.04B12.73B28.29B45.89B65.18B

Financial health

Debt/Asset
76.41%
Current ratio
1.58
Quick ratio
1.19
Cash ratio
1.19
AI Analysis
  • Financial health shows both strength and significant leverage, with adequate short-term liquidity (Current Ratio 1.58, Quick Ratio 1.19) but high debt levels (Debt-to-Asset Ratio 76.41%) creating a highly leveraged capital structure that increases financial risk.
  • Liquidity: Company maintains adequate short-term liquidity with Current Ratio of 1.58 and Quick Ratio of 1.19, indicating it can comfortably cover short-term obligations.
  • Solvency/Leverage: Primary concern is high level of debt; Debt-to-Asset Ratio is 76.41%, signifying highly leveraged capital structure.
  • High leverage is common for large, cash-generative pharmaceutical firms but increases financial risk, particularly in rising interest rate environment.
  • Overall Health: While liquidity is sound, high leverage requires careful monitoring of interest coverage and cash flow stability.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset81.87%82.27%81.82%79.25%76.41%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.151.371.281.551.58