Eli Lilly & Co (LLY) AI Stock Analysis

• Market Cap: $955.13B
• Dividend Yield: 0.59%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 50.0
• Beta (1Y): 0.65
• 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: 3,342,324
• 30 Day Avg. Volume: 4,072,812
• 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: 0.75
• Enterprise Value/Revenue: 12.09
• Enterprise Value/Gross Profit: 14.56
• Enterprise Value/Ebitda: 28.40
• 1Y Price Target: $1,078.06
• Price Target Upside: 6.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 23.77
• Revenue Forecast (FY): $63.66B

• Rating: 73 Outperform
• Price Target: $1,126.00 ▲(11.45% Upside)

Eli Lilly & Co's overall stock score reflects strong financial performance and positive earnings call sentiment, driven by significant revenue growth and strategic advancements. However, high leverage, declining cash flow metrics, and a premium valuation present potential risks. The technical analysis supports a bullish outlook, while corporate governance improvements add a positive note.

Positive Factors

Revenue Growth

Eli Lilly's strong Q3 revenue growth of 54% year-over-year highlights robust demand for its incretin portfolio, indicating a solid market position and potential for sustained revenue expansion.

Manufacturing Expansion

The $1.2 billion investment in expanding manufacturing capacity in Puerto Rico will enhance Eli Lilly's production capabilities, supporting long-term growth in cardiometabolic, neuroscience, oncology, and immunology sectors.

AI and Supercomputing

Eli Lilly's collaboration with Nvidia to build a supercomputer for AI-driven drug discovery can significantly accelerate R&D processes, enhancing innovation and competitive advantage in the pharmaceutical industry.

Negative Factors

High Leverage

Eli Lilly's high leverage, indicated by a debt-to-equity ratio of 2.18, could pose financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Declining Cash Flow

The significant decline in free cash flow growth suggests potential challenges in cash generation, which could impact Eli Lilly's ability to fund operations and investments sustainably.

Pricing Pressure

The 8% price decline in the U.S. market reflects ongoing pricing pressures, which may affect Eli Lilly's profitability and necessitate strategic adjustments to maintain competitive pricing.

Eli Lilly & Co Business Overview & Revenue Model

Company Description

Eli Lilly & Co (LLY) is a global pharmaceutical company headquartered in Indianapolis, Indiana, specializing in the development, manufacturing, and marketing of innovative medicines. The company operates primarily in the biopharmaceutical sector and focuses on several therapeutic areas, including diabetes, oncology, immunology, neuroscience, and men's and women's health. Eli Lilly is known for its portfolio of leading medications, such as insulin products, cancer therapies, and treatments for mental health disorders, aimed at improving patient outcomes and enhancing the quality of life for individuals worldwide.

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: Neutral
• Last Price: 1010.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LLY, the sentiment is Neutral. The current price of 1010.31 is below the 20-day moving average (MA) of 1033.25, above the 50-day MA of 910.66, and above the 200-day MA of 809.32, indicating a neutral trend. The MACD of 38.48 indicates Positive momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 8.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LLY.

Eli Lilly & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	80 Outperform	$253.41B	17.90	32.93%	3.02%	11.53%	-15.21%
AZN	79 Outperform	$281.09B	29.71	21.73%	1.74%	12.95%	44.28%
JNJ	78 Outperform	$486.51B	19.49	33.62%	2.55%	5.08%	71.07%
MRK	76 Outperform	$250.41B	13.53	39.51%	3.25%	1.59%	58.02%
LLY	73 Outperform	$955.13B	49.97	96.82%	0.59%	45.41%	120.94%
ABBV	62 Neutral	$399.57B	170.59	138.53%	2.90%	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.