Eli Lilly & Co (LLY) AI Stock Analysis

• Market Cap: $708.13B
• Dividend Yield: 0.78%
• Average Volume (3M): 5.49M
• Price to Earnings (P/E): 49.6
• Beta (1Y): 0.73
• Revenue Growth: 36.83%
• EPS Growth: 88.21%
• Country: US
• Employees: 47,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 6.31
• Shares Outstanding: 946,456,800
• 10 Day Avg. Volume: 2,901,055
• 30 Day Avg. Volume: 5,487,118
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 13.85
• Enterprise Value/Gross Profit: 16.77
• Enterprise Value/Ebitda: 37.53
• 1Y Price Target: $921.71
• Price Target Upside: 23.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 71 Outperform
• Price Target: $829.00 ▲(10.80% Upside)

Eli Lilly & Co's overall stock score reflects strong financial performance and positive earnings call highlights, including significant revenue and earnings growth. However, high valuation and leverage, along with moderate technical indicators, temper the overall outlook. Strategic investments and product successes provide a cautiously optimistic future, despite some market challenges.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong demand for Eli Lilly's products, suggesting a robust market position and potential for continued expansion.

Strategic Partnerships

Partnership with JD Health enhances Eli Lilly's distribution channels in China, potentially increasing market reach and sales in a major market.

AI and Innovation

The AI platform can accelerate drug discovery and enhance R&D efficiency, providing a competitive edge in pharmaceutical innovation.

Negative Factors

High Leverage

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

Declining Free Cash Flow

Declining free cash flow limits the company's ability to reinvest in operations, pay down debt, or return capital to shareholders.

Regulatory Challenges

New regulatory requirements for drug ads may increase compliance costs and impact marketing strategies, affecting long-term profitability.

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 include both branded and generic medications. The company has a diversified portfolio with significant revenue contributions from its diabetes drugs, such as Trulicity and Humalog, and oncology treatments, including Verzenio and Taltz. Additionally, Eli Lilly benefits from revenue generated through partnerships and collaborations with other pharmaceutical companies and research institutions, which may include co-development agreements, licensing deals, and joint ventures. The company also invests in research and development to innovate new therapies and expand its product lineup, further enhancing its revenue streams.

Eli Lilly & Co Financial Statement Overview

Summary

Eli Lilly & Co demonstrates strong financial health with impressive revenue and profit growth, robust margins, and a high ROE. The company effectively manages cash flows, with notable improvements in free cash flow. However, the high leverage and relatively low equity ratio suggest careful monitoring of financial obligations.

Income Statement

Eli Lilly & Co has demonstrated strong revenue growth with a significant increase in Total Revenue from $45.04B to $49.00B TTM (Trailing-Twelve-Months), representing a growth rate of 8.77%. Gross Profit Margin is robust at 81.69%, and Net Profit Margin has improved to 22.67%. The EBIT Margin is healthy at 41.17%, and EBITDA Margin stands at 36.35%. Overall, the income statement reflects strong profitability and growth trends, positioning the company well within its industry.

Balance Sheet

The balance sheet shows a moderate Debt-to-Equity Ratio of 2.44, indicating a higher leverage position which poses some risk. However, the Return on Equity (ROE) is impressive at 70.48%, reflecting strong profitability relative to shareholder equity. The Equity Ratio is relatively low at 17.64%, suggesting limited equity financing. While profitability metrics are strong, the high leverage warrants cautious monitoring.

Cash Flow

Free Cash Flow has grown significantly to $1.21B TTM, a notable improvement from previous periods. The Operating Cash Flow to Net Income Ratio is 0.84, indicating efficient cash generation from operations. Free Cash Flow to Net Income Ratio is 0.11, highlighting room for improvement in converting income to free cash. Overall, cash flow metrics are solid, with positive growth trends in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.26B	45.04B	34.12B	28.54B	28.32B	24.54B
Gross Profit	44.01B	36.62B	27.04B	21.91B	21.01B	19.06B
EBITDA	19.66B	15.23B	8.57B	8.66B	8.04B	8.91B
Net Income	13.80B	10.59B	5.24B	6.24B	5.58B	6.19B
Balance Sheet
Total Assets	100.92B	78.71B	64.01B	49.49B	48.81B	46.63B
Cash, Cash Equivalents and Short-Term Investments	3.55B	3.42B	2.93B	2.21B	3.91B	3.68B
Total Debt	39.90B	33.64B	25.23B	16.24B	16.88B	16.60B
Total Liabilities	82.57B	64.44B	53.14B	38.71B	39.65B	40.81B
Stockholders Equity	18.27B	14.19B	10.77B	10.65B	8.98B	5.64B
Cash Flow
Free Cash Flow	-50.20M	414.30M	-3.15B	4.60B	5.39B	4.47B
Operating Cash Flow	10.94B	8.82B	4.24B	7.59B	7.37B	6.50B
Investing Cash Flow	-11.11B	-9.30B	-7.15B	-3.76B	-2.87B	-2.26B
Financing Cash Flow	120.70M	1.23B	3.50B	-5.41B	-4.13B	-3.14B

Eli Lilly & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 748.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 748.19 is above the 20-day moving average (MA) of 733.59, above the 50-day MA of 740.48, and below the 200-day MA of 783.55, indicating a neutral trend. The MACD of 8.48 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 80.88 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
JNJ	80 Outperform	427.24B	18.97	28.88%	2.86%	4.69%	34.88%
AZN	79 Outperform	240.73B	29.08	17.25%	2.01%	15.08%	29.15%
NVS	78 Outperform	234.02B	17.74	22.91%	3.24%	12.38%	-12.67%
MRK	75 Outperform	202.37B	12.49	33.49%	3.99%	2.00%	20.01%
LLY	71 Outperform	$708.13B	49.61	86.70%	0.78%	36.83%	88.21%
ABBV	68 Neutral	384.42B	103.56	-2059.56%	2.97%	6.05%	-29.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Eli Lilly & Co Corporate Events

Eli Lilly & Co Completes $6.71 Billion Notes Issuance

On August 18, 2025, Eli Lilly & Co entered into an underwriting agreement with several financial institutions for the issuance and sale of various notes, including both floating and fixed rate notes, totaling approximately $6.71 billion in net proceeds. This financial maneuver, completed on August 20, 2025, is expected to strengthen the company’s financial position and potentially impact its strategic operations and market presence.