Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Eli Lilly & Co

LLY · NYSE · Healthcare

Fundamental quality

EXCELLENT

93

out of 100

Eli Lilly & Co fits the profile of a quality compounder: it pairs high return on capital (ROE 81%) with wide margins (net margin 35%) and a business that keeps growing (22.9% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Eli Lilly is one of the world's largest pharmaceutical companies. It researches, develops and sells medicines; in recent years its growth leans heavily on its treatments for diabetes and obesity.

What will shape its future

  • The commercial success of its obesity and diabetes drugs, a huge and rapidly expanding market.
  • Its manufacturing capacity to meet demand that has outstripped supply.
  • Competition (especially Novo Nordisk), patents, and pressure on U.S. drug prices.

Breakdown by area

I.Growth
92

EPS growth: 31.1% · Revenue growth: 22.9%

II.Profitability
95

Net margin: 35% · ROE: 81% · ROIC: 37.5%

III.Financial health
87

Net debt/EBITDA: 1.12x · FCF: 16.4%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +2 for dividend strength: 10 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 98%
ROEbeats 94%
Growthbeats 93%
Cash generationbeats 59%
Less debtbeats 70%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Eli Lilly & Co strengths

  • Solid return on capital: its ROE (81%) is inflated by buybacks, but ROIC —which strips that out— is 37.5%.
  • Exceptional net margin (35%), high even for its sector: the business is clearly profitable.
  • Growing earnings per share (31.1% annualized).
  • Revenue growing strongly (22.9% annualized).

Eli Lilly & Co risks and weaknesses

  • Its net debt has grown over the period.

Eli Lilly & Co historical evolution

YearRevenueNet incomeFree cash flowNet debt
202024,5406,1945,11212,938
202128,3185,5826,05613,066
202228,5416,2455,73114,172
202334,1245,24079222,407
202445,04310,5903,76030,376
202565,17920,6408,97235,235

Between 2020 and 2025, revenue went from $24,540M to $65,179M (+166%) and net income went from $6,194M to $20,640M (+233%). Meanwhile, its margins have widened (from 25% to 32%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+55.5%
  • Net income+168.1%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$6.23

per share, yearly

26.1% of earnings

Payout

10 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Eli Lilly & Co cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Eli Lilly & Co a good company to invest in?

In terms of business quality, Eli Lilly & Co scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Eli Lilly & Co a profitable company?

Very. Eli Lilly & Co shows a net margin of 35% and an ROE of 81%, typical of a highly profitable business.

Does Eli Lilly & Co have a lot of debt?

Not particularly. Its net debt is 1.12 times its EBITDA, a low level.

Is Eli Lilly & Co growing?

Its revenue has grown 22.9% annualized in recent years and its earnings per share 31.1%, and without interruption since 2020.

Does Eli Lilly & Co generate cash?

Yes. It converts about 16.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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