Performance Comparison: Eli Lilly and Co And Competitors In Pharmaceuticals Industry

In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Eli Lilly and Co LLY alongside its primary competitors in the Pharmaceuticals industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to 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.

By conducting a comprehensive analysis of Eli Lilly and Co, the following trends become evident:

• The Price to Earnings ratio of 120.04 for this company is 1.74x above the industry average, indicating a premium valuation associated with the stock.

• It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 60.46 which exceeds the industry average by 2.29x.

• The stock's relatively high Price to Sales ratio of 20.49, surpassing the industry average by 4.07x, may indicate an aspect of overvaluation in terms of sales performance.

• The Return on Equity (ROE) of 19.02% is 59.5% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.

• Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.12 Billion, which is 0.15x below the industry average, potentially indicating lower profitability or financial challenges.

• The company has lower gross profit of $7.09 Billion, which indicates 0.11x below the industry average. This potentially indicates lower revenue after accounting for production costs.

• The company's revenue growth of 25.98% exceeds the industry average of 9.27%, indicating strong sales performance and market outperformance.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.

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:

• Eli Lilly and Co holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.

• This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 2.05.

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. The low ROE, EBITDA, and gross profit suggest lower profitability and operational efficiency. However, the high revenue growth rate may indicate strong potential for future growth compared to industry peers.

This article was generated by Benzinga's automated content engine and reviewed by an editor.