In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Eli Lilly and Co LLY against its key competitors in the Pharmaceuticals industry. By analyzing important financial metrics, market position, and growth prospects, we aim 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 | 134.51 | 68.82 | 20.65 | 19.91% | $3.03 | $7.57 | 28.1% |
| Novo Nordisk A/S | 50.13 | 39.09 | 18.06 | 22.01% | $28.51 | $55.85 | 36.95% |
| Johnson & Johnson | 30.55 | 5.56 | 4.78 | 5.78% | $6.82 | $14.6 | 7.3% |
| Merck & Co Inc | 885.64 | 8.36 | 5.25 | -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 | 24.37 | 4.38 | 4.48 | 19.99% | $4.18 | $8.75 | 7.39% |
| Pfizer Inc | 72.41 | 1.70 | 2.58 | -3.62% | $-1.77 | $6.69 | -41.34% |
| Sanofi SA | 20.59 | 1.49 | 2.40 | -0.75% | $0.42 | $8.15 | 6.5% |
| Bristol-Myers Squibb Co | 13.80 | 3.66 | 2.46 | 6.03% | $4.45 | $8.73 | 0.62% |
| GSK PLC | 14.27 | 5.20 | 2.32 | 2.64% | $1.16 | $5.63 | 9.16% |
| Zoetis Inc | 35.80 | 16.63 | 9.82 | 10.42% | $0.83 | $1.49 | 8.48% |
| Takeda Pharmaceutical Co Ltd | 39.45 | 1.03 | 1.68 | 1.53% | $314.89 | $731.71 | 1.33% |
| Viatris Inc | 246.60 | 0.72 | 0.96 | -3.7% | $-0.07 | $1.6 | -1.0% |
| Dr Reddy's Laboratories Ltd | 20.20 | 3.93 | 3.89 | 5.29% | $22.42 | $42.2 | 6.57% |
| Jazz Pharmaceuticals PLC | 19.08 | 1.94 | 2.19 | 2.61% | $0.29 | $0.9 | 4.1% |
| Average | 107.69 | 7.07 | 4.67 | 4.83% | $27.4 | $64.77 | 4.22% |
By closely studying Eli Lilly and Co, we can observe the following trends:
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The Price to Earnings ratio of 134.51 for this company is 1.25x above the industry average, indicating a premium valuation associated with the stock.
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With a Price to Book ratio of 68.82, which is 9.73x the industry average, Eli Lilly and Co might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
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With a relatively high Price to Sales ratio of 20.65, which is 4.42x the industry average, the stock might be considered overvalued based on sales performance.
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The company has a higher Return on Equity (ROE) of 19.91%, which is 15.08% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
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The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.03 Billion is 0.11x below the industry average, suggesting potential lower profitability or financial challenges.
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The gross profit of $7.57 Billion is 0.12x below that of its industry, suggesting potential lower revenue after accounting for production costs.
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With a revenue growth of 28.1%, which surpasses the industry average of 4.22%, the company is demonstrating robust sales expansion and gaining market share.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile 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.
In light of the Debt-to-Equity ratio, a comparison between Eli Lilly and Co and its top 4 peers reveals the following information:
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Compared to its top 4 peers, Eli Lilly and Co has a higher debt-to-equity ratio of 2.34, indicating a higher level of debt financing.
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This higher debt proportion can expose the company to increased 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.
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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