LLY

Eli Lilly

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/30/26

Business Summary

Eli Lilly generates cash by discovering, developing, and commercializing branded pharmaceutical therapies protected by patents, allowing it to command premium pricing and sustain high margins. Its economic moat is rooted in intellectual property, regulatory barriers, and the enormous capital required to replicate late-stage drug pipelines. The company reinvests heavily into R&D to refresh its portfolio, turning scientific innovation into high-ROIC products that scale globally. With strong institutional ownership and a massive $839,282 market cap, it operates with distribution breadth and clinical depth that smaller competitors cannot easily replicate.

VALUATION

P/E

41

Market Cap ($M USD)

$839,282

Forward P/E

22.3

PEG

1.1

PRICE TO SALES

13

PRICE TO BOOK

31.7

EV / EBITDA

27.6

5-Year Average P/E

DIVIDEND

Yield

0.70%

Annual Payout

$6.23

Payout Ratio

26.10%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

15.30%

Financial Health & Profitability

Earnings Per Share

$23.00

Next Year EPS Growth Estimate

$42.07

Next Year Revenue Growth Estimate

16.20%

Return on Equity (ROE)

77.80%

Operating Margin

45.60%

Debt-to-Equity

1.6

Piotroski F-Score

8

Altman Z-Score

7.8

Return on Invested Capital (ROIC)

35.30%%

Current Ratio

1.6

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 41x earnings with a Forward P/E of 22.3 and a PEG of 1.1, the market is clearly pricing Eli Lilly as a premium growth compounder but not an untouchable bubble. The compression from 41 to 22.3 forward implies substantial expected earnings acceleration, yet EPS Next Year (Est.) is $23.00 versus current EPS of 27.6, which introduces near-term earnings ambiguity. Financially, the balance sheet is fortress-like with an Altman Z-Score of 7.8 and a Piotroski F-Score of 8, signaling very low distress risk and strong operational quality. This is not a distressed mispricing; it is a high-quality franchise priced for durable growth, where safety is strong but upside depends on continued execution justifying a 13x sales and 31.7x book multiple.

AI Exposure / Tech Reliance

As a Drug Manufacturers - General company within Healthcare, Eli Lilly operates in a data-intensive, R&D-heavy environment that increasingly integrates AI into drug discovery, trial design, and manufacturing optimization. Companies in this space that successfully leverage modern computational tools can compress development timelines and enhance capital efficiency. Given its scale and 77.80% operating margin, it has the financial bandwidth to integrate advanced technologies without balance sheet strain.

The Bull Case

A GARP investor buys this because the profitability profile is elite: 77.80% operating margin and 35.30% ROIC are hallmarks of a capital-light, IP-driven machine. A Piotroski F-Score of 8 confirms operational strength and earnings quality, while a 16.20% ROE combined with a manageable 45.60% Debt/Equity shows leverage is being used but not abused. The Forward P/E of 22.3 against a PEG of 1.1 implies growth roughly in line with valuation, not egregiously ahead of it. Add a Current Ratio of 1.6 and an Altman Z-Score of 7.8, and you’re looking at an institutionally durable compounder with both profitability and solvency firmly intact.

The Bear Case

The stock is expensive by traditional value standards: 13x sales and 31.7x book leave zero room for disappointment. Short % of Float at 15.30% is not trivial, suggesting a meaningful cohort is betting on multiple compression or earnings normalization. Debt/Equity of 45.60% is acceptable but not trivial in a rising-rate or regulatory-risk environment, and the discrepancy between current EPS of 27.6 and EPS Next Year (Est.) of $23.00 signals potential earnings contraction despite a lofty multiple. If growth stumbles even modestly, a 41 P/E name with a 1.6 yield and a payout ratio listed as $6.23 offers limited valuation cushion.

Market Sentiment & Smart Money

Short Interest %

0.90%

Analyst Consensus

1.35

Average Analyst Price Target

$1,239.50

Institutional Ownership %

84.60%

1-Year Beta

0.7

Insider Buying % (6 Mo)

0.20%%

Distance to 52-Week High

82.90%%

Distance to 52-Week Low

150.60%%