Eli Lilly & Co (LLY) AI Stock Analysis

• Market Cap: $1.01T
• Dividend Yield: 0.61%
• Average Volume (3M): 3.70M
• Price to Earnings (P/E): 53.0
• Beta (1Y): 0.68
• Revenue Growth: 45.41%
• EPS Growth: 120.94%
• Country: US
• Employees: 47,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 7.02
• Shares Outstanding: 945,383,700
• 10 Day Avg. Volume: 3,516,693
• 30 Day Avg. Volume: 3,696,172
• PEG Ratio: 0.65
• Price to Book (P/B): 48.99
• Price to Sales (P/S): 15.44
• P/FCF Ratio: 1.68K
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 12.09
• Enterprise Value/Gross Profit: 14.56
• Enterprise Value/Ebitda: 28.40
• 1Y Price Target: $1,135.32
• Price Target Upside: 5.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 23.77
• Revenue Forecast (FY): $63.75B

• Rating: 72 Outperform
• Price Target: $1,107.00 ▲(3.32% Upside)

Eli Lilly's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's high leverage and cash flow challenges are notable risks. Technical analysis and valuation suggest caution, while the recent board appointment is a positive corporate event.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Eli Lilly's products, enhancing its market position and supporting long-term financial stability.

Manufacturing Expansion

Expanding manufacturing capabilities will support product demand and innovation, ensuring Eli Lilly can scale operations and meet future market needs.

FDA and EU Approvals

Regulatory approvals enhance Eli Lilly's product portfolio, providing competitive advantages and potential for increased market share in key therapeutic areas.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Eli Lilly's ability to invest in growth opportunities.

Declining Cash Flow

Declining cash flow may hinder Eli Lilly's ability to fund operations and investments, posing challenges for long-term financial health.

Increased Expenses

Rising expenses can pressure margins and profitability, potentially affecting Eli Lilly's ability to maintain competitive pricing and invest in innovation.

Eli Lilly & Co Business Overview & Revenue Model

Company Description

Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. It offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; and Jardiance, Trajenta, and Trulicity for type 2 diabetes. The company provides Alimta for non-small cell lung cancer (NSCLC) and malignant pleural mesothelioma; Cyramza for metastatic gastric cancer, gastro-esophageal junction adenocarcinoma, metastatic NSCLC, metastatic colorectal cancer, and hepatocellular carcinoma; Erbitux for colorectal cancers, and various head and neck cancers; Retevmo for metastatic NSCLC, medullary thyroid cancer, and thyroid cancer; Tyvyt for relapsed or refractory classic Hodgkin's lymph and non-squamous NSCLC; and Verzenio for HR+, HER2- metastatic breast cancer, node positive, and early breast cancer. It offers Olumiant for rheumatoid arthritis; and Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis. The company offers Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Emgality for migraine prevention and episodic cluster headache; and Zyprexa for schizophrenia, bipolar I disorder, and bipolar maintenance. Its Bamlanivimab and etesevimab, and Bebtelovimab for COVID-19; Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. The company has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; AbCellera Biologics Inc.; Junshi Biosciences; Regor Therapeutics Group; Lycia Therapeutics, Inc.; Kumquat Biosciences Inc.; Entos Pharmaceuticals Inc.; and Foghorn Therapeutics Inc. Eli Lilly and Company was founded in 1876 and is headquartered in Indianapolis, Indiana.

How the Company Makes Money

Eli Lilly generates revenue primarily through the sale of its pharmaceutical products, which are distributed to healthcare providers, hospitals, and pharmacies globally. The company's key revenue streams include sales from branded medications, which account for a significant portion of its income, particularly in diabetes and cancer treatment segments. Additionally, Eli Lilly engages in collaboration and partnership agreements with other pharmaceutical companies and research organizations, allowing it to share the costs and risks associated with drug development. These partnerships often lead to co-marketing arrangements or royalties from the sale of co-developed products. The company also invests in research and development to create new therapies, which, once approved, can significantly boost revenue through market exclusivity and patent protections, contributing to its overall earnings growth.

Eli Lilly & Co Financial Statement Overview

Summary

Eli Lilly & Co demonstrates strong revenue growth and profitability, supported by high margins and effective equity utilization. However, the high leverage and declining cash flow metrics highlight potential risks. Overall, the company maintains a solid financial position with areas for improvement in cash flow management.

Income Statement

Eli Lilly & Co has demonstrated strong revenue growth with an 11.57% increase in TTM, supported by robust gross and net profit margins of 82.64% and 25.91%, respectively. The EBIT and EBITDA margins are also healthy at 33.37% and 36.92%, indicating efficient operations. The consistent growth trajectory and high profitability margins reflect a solid financial performance.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 2.18, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity is impressive at 88.36%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Eli Lilly & Co's cash flow performance shows a decline in free cash flow growth, with a negative rate of -18069.52% in TTM. The operating cash flow to net income ratio is low at 0.28, and the free cash flow to net income ratio is negative, indicating potential challenges in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.42B	45.04B	34.12B	28.54B	28.32B	24.54B
Gross Profit	49.34B	36.62B	27.04B	21.91B	21.01B	19.06B
EBITDA	25.30B	15.23B	8.57B	8.66B	8.04B	8.91B
Net Income	18.41B	10.59B	5.24B	6.24B	5.58B	6.19B
Balance Sheet
Total Assets	114.94B	78.71B	64.01B	49.49B	48.81B	46.63B
Cash, Cash Equivalents and Short-Term Investments	9.91B	3.42B	2.93B	2.21B	3.91B	3.68B
Total Debt	42.51B	33.64B	25.23B	16.24B	16.88B	16.60B
Total Liabilities	91.08B	64.44B	53.14B	38.71B	39.65B	40.81B
Stockholders Equity	23.79B	14.19B	10.77B	10.65B	8.98B	5.64B
Cash Flow
Free Cash Flow	9.02B	414.30M	-3.15B	4.60B	5.39B	4.47B
Operating Cash Flow	16.06B	8.82B	4.24B	7.59B	7.37B	6.50B
Investing Cash Flow	-10.09B	-9.30B	-7.15B	-3.76B	-2.87B	-2.26B
Financing Cash Flow	440.40M	1.23B	3.50B	-5.41B	-4.13B	-3.14B

Eli Lilly & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1071.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LLY, the sentiment is Positive. The current price of 1071.44 is above the 20-day moving average (MA) of 1043.95, above the 50-day MA of 955.05, and above the 200-day MA of 815.66, indicating a bullish trend. The MACD of 22.99 indicates Positive momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 80.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LLY.

Eli Lilly & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	80 Outperform	$250.91B	13.37	39.51%	3.24%	1.59%	58.02%
NVS	80 Outperform	$257.99B	18.43	32.93%	2.94%	11.53%	-15.21%
AZN	79 Outperform	$281.78B	30.10	21.73%	1.71%	12.95%	44.28%
JNJ	78 Outperform	$497.21B	19.92	33.62%	2.49%	5.08%	71.07%
LLY	72 Outperform	$1.01T	52.99	96.82%	0.61%	45.41%	120.94%
ABBV	66 Neutral	$400.88B	171.15	138.53%	2.89%	7.40%	-53.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Eli Lilly & Co Corporate Events

Eli Lilly Announces New Board Member Election

On November 18, 2025, Eli Lilly & Co announced the election of Dr. Carolyn R. Bertozzi to its Board of Directors, effective December 8, 2025. Dr. Bertozzi, a distinguished professor at Stanford University, will serve on the Science and Technology Committee and the Ethics and Compliance Committee, and her appointment underscores Eli Lilly’s commitment to scientific excellence and ethical governance.