In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Eli Lilly and Co LLY and its primary competitors in the Pharmaceuticals industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.
Eli Lilly and Co Background
Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio for cancer; Mounjaro, Zepbound, Jardiance, Trulicity, Humalog, and Humulin for diabetes; and Taltz and Olumiant for immunology.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Eli Lilly and Co | 132.80 | 67.94 | 20.39 | 19.91% | $3.03 | $7.57 | 28.1% |
| Novo Nordisk A/S | 47.87 | 37.33 | 17.25 | 22.01% | $28.51 | $55.85 | 36.95% |
| Johnson & Johnson | 29.95 | 5.46 | 4.68 | 5.78% | $6.82 | $14.6 | 7.3% |
| Merck & Co Inc | 883 | 8.33 | 5.24 | -3.11% | $-0.77 | $10.72 | 5.78% |
| AstraZeneca PLC | 34.75 | 5.24 | 4.51 | 2.52% | $2.18 | $9.72 | 7.29% |
| Novartis AG | 23.43 | 4.21 | 4.31 | 19.99% | $4.18 | $8.75 | 7.39% |
| Pfizer Inc | 74.76 | 1.76 | 2.67 | -3.62% | $-1.77 | $6.69 | -41.34% |
| Sanofi SA | 20.44 | 1.48 | 2.38 | -0.75% | $0.42 | $8.15 | 6.5% |
| Bristol-Myers Squibb Co | 13.37 | 3.54 | 2.38 | 6.03% | $4.45 | $8.73 | 0.62% |
| GSK PLC | 13.89 | 5.06 | 2.26 | 2.64% | $1.16 | $5.63 | 9.16% |
| Zoetis Inc | 33.20 | 15.42 | 9.11 | 10.42% | $0.83 | $1.49 | 8.48% |
| Takeda Pharmaceutical Co Ltd | 38.57 | 1.01 | 1.64 | 1.53% | $314.89 | $731.71 | 1.33% |
| Viatris Inc | 240.20 | 0.70 | 0.94 | -3.7% | $-0.07 | $1.6 | -1.0% |
| Dr Reddy's Laboratories Ltd | 19.32 | 3.76 | 3.72 | 5.29% | $22.42 | $42.2 | 6.57% |
| Jazz Pharmaceuticals PLC | 20.35 | 2.07 | 2.33 | 2.61% | $0.29 | $0.9 | 4.1% |
| Average | 106.65 | 6.81 | 4.53 | 4.83% | $27.4 | $64.77 | 4.22% |
By thoroughly analyzing Eli Lilly and Co, we can discern the following trends:
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Notably, the current Price to Earnings ratio for this stock, 132.8, is 1.25x above the industry norm, reflecting a higher valuation relative to the industry.
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The elevated Price to Book ratio of 67.94 relative to the industry average by 9.98x suggests company might be overvalued based on its book value.
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The Price to Sales ratio of 20.39, which is 4.5x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
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With a Return on Equity (ROE) of 19.91% that is 15.08% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
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With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.03 Billion, which is 0.11x below the industry average, the company may face lower profitability or financial challenges.
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Compared to its industry, the company has lower gross profit of $7.57 Billion, which indicates 0.12x below the industry average, potentially indicating lower revenue after accounting for production costs.
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The company is experiencing remarkable revenue growth, with a rate of 28.1%, outperforming the industry average of 4.22%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When examining Eli Lilly and Co in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
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Among its top 4 peers, Eli Lilly and Co has a higher debt-to-equity ratio of 2.34.
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This implies a greater reliance on debt financing, which can expose the company to higher financial risk and potential challenges.
Key Takeaways
For Eli Lilly and Co in the Pharmaceuticals industry, the PE, PB, and PS ratios are all high compared to its peers, indicating potentially overvalued stock. On the other hand, the high ROE and revenue growth suggest strong profitability and future prospects. However, the low EBITDA and gross profit may raise concerns about operational efficiency and cost management within the company.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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