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Eli Lilly and Company (LLY) Stock

Eli Lilly and Company Stock Details, Movements and Public Alerts

Eli Lilly Stock: The GLP-1 Gold Rush Leader

Eli Lilly has become the largest pharmaceutical company at $814 billion market cap, with GLP-1 drugs driving 45% revenue growth. The company expects $60-62 billion in 2025 revenue as Mounjaro and Zepbound dominate diabetes and obesity markets.

  • •
    Core Strengths:GLP-1 dominance, oral drug lead, manufacturing scale, pipeline depth
  • •
    Main Risks:Competition intensifying, manufacturing constraints, pricing pressure, patent cliffs
  • •
    Bottom Line:Riding the biggest drug market opportunity in pharmaceutical history

Market Cap

$656.73B

52-Week High

$932.73

-19.05% from high

52-Week Low

$622.41

+21.30% from low

Avg Daily Volume

2,195,700

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

47.85

Above market average

Forward P/E

32.15

Earnings expected to grow

PEG Ratio

1.06

Reasonably valued

Price to Book

35.94

EV/EBITDA

35.25

EPS (TTM)

$15.31

Price to Sales

12.33

Beta

0.44

Less volatile than market

How is LLY valued relative to its earnings and growth?
Eli Lilly and Company trades at a P/E ratio of 47.85, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 32.15 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.06 indicates reasonable value when growth is considered.
What is LLY's risk profile compared to the market?
With a beta of 0.44, Eli Lilly and Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 35.94 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

25.90%

Operating Margin

45.80%

Return on Equity

86.30%

Return on Assets

16.60%

Revenue Growth (YoY)

37.60%

Earnings Growth (YoY)

91.80%

How profitable and efficient is LLY's business model?
Eli Lilly and Company achieves a profit margin of 25.90%, meaning it retains $25.90 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 45.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 86.30% and ROA at 16.60%, the company generates strong returns on invested capital.
What are LLY's recent growth trends?
Eli Lilly and Company's revenue grew by 37.60% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 91.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against PHARMACEUTICAL PREPARATIONS industry averages for proper context.

Dividend Information

Dividend Per Share

$5.60

Dividend Yield

0.77%

Ex-Dividend Date

8/15/2025

Dividend Date

9/10/2025

What dividend income can investors expect from LLY?
Eli Lilly and Company offers a dividend yield of 0.77%, paying $5.60 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 8/15/2025.
How reliable is LLY's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Eli Lilly and Company pays $5.60 per share in dividends against earnings of $15.31 per share, resulting in a payout ratio of 36.58%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 9/10/2025.

Company Size & Market

Shares Outstanding

896.46M

Book Value/Share

$20.38

Asset Type

Common Stock

What is LLY's market capitalization and position?
Eli Lilly and Company has a market capitalization of $656.73B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 896.46M shares outstanding, the company's ownership is relatively concentrated. As a major player in the PHARMACEUTICAL PREPARATIONS industry, it competes with other firms in this sector.
How does LLY's price compare to its book value?
Eli Lilly and Company's book value per share is $20.38, while the current stock price is $755.01, resulting in a price-to-book (P/B) ratio of 37.05. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$888.52

17.68% upside potential

Analyst Recommendations

Strong Buy

4

Buy

18

Hold

5

Sell

1

Strong Sell

1

How reliable are analyst predictions for LLY?
29 analysts cover LLY with 76% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $888.52 implies 17.7% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on LLY?
Current analyst recommendations:4 Strong Buy, 18 Buy, 5 Hold, 1 Sell, 1 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Sep 1, 2025, 05:30 AM

Technical Indicators

What does LLY's RSI value tell investors?
RSI data is not available for this stock.
How should traders interpret LLY's MACD and moving average crossovers?
MACD and moving average data are not available for this stock.

No technical indicators available yet.

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Eli Lilly (LLY) Stock Analysis 2025 - Weight Loss Drug Investment Guide

Eli Lilly has become the largest pharmaceutical company at $814 billion market cap, with GLP-1 drugs driving 45% revenue growth. The company expects $60-62 billion in 2025 revenue as Mounjaro and Zepbound dominate diabetes and obesity markets.

Why Eli Lilly? Understanding the Investment Story

The Obesity Revolution

Eli Lilly stands at the epicenter of the greatest pharmaceutical gold rush since statins, with GLP-1 drugs addressing the global obesity epidemic affecting 1 billion people. Mounjaro generated $5.2 billion in Q2 revenue, up 68% year-over-year, while Zepbound delivered $3.38 billion, up 172%. Combined, these drugs will likely become the best-selling medicines in history by their third year on market.

The market opportunity defies comprehension. Analysts project the GLP-1 market reaching $150 billion annually by early 2030s, larger than the entire pharmaceutical industries of most countries. Lilly dominance stems from tirzepatide dual mechanism providing superior weight loss to competitors. While Novo Nordisk Ozempic grabbed headlines, Lilly drugs deliver better results with potentially fewer side effects.

The Oral Advantage

Orforglipron, Lilly oral GLP-1, achieved 12.4% weight loss in Phase 3 trials - a game-changer for the 90% of patients who avoid injections. As the first oral GLP-1 without food restrictions, orforglipron could capture $50 billion of the market by 2030. Lilly is three years ahead of competitors in oral development, with regulatory submission expected by year-end. Manufacturing advantages mean oral pills can scale without the injection pen constraints limiting current supply.

Valuation: Growth at a Reasonable Price

Despite the massive run-up, Lilly trades at 25.4 times forward earnings with a PEG ratio of 0.3 - suggesting significant undervaluation relative to growth. The company raised 2025 guidance to $60-62 billion in revenue with $21.75-23 in adjusted EPS, representing 30%+ growth. For a company revolutionizing chronic disease treatment, the valuation appears reasonable considering the total addressable market expansion ahead.

Opportunities for 2025 and Beyond

Manufacturing Moat

Lilly massive manufacturing investments create an underappreciated moat. While competitors struggle with supply, Lilly expanded capacity positions it to capture market share through availability alone. The company operational excellence in scaling complex biologics and pivoting to oral production demonstrates execution excellence. In pharmaceuticals, the best drug that patients cannot access loses to available alternatives.

Beyond Weight Loss

GLP-1 drugs show promise treating sleep apnea, cardiovascular disease, kidney disease, and even addiction. Each new indication expands the addressable market by hundreds of millions of patients. Lilly pipeline includes next-generation triple agonists potentially doubling weight loss efficacy. The company transformed from a diabetes specialist to the leader in metabolic disease, a market measured in trillions over coming decades.

Who Is This Stock For?

Perfect For

  • ✓Growth investors seeking pharmaceutical exposure
  • ✓Healthcare bulls believing in GLP-1 revolution
  • ✓Long-term holders comfortable with volatility
  • ✓Thematic investors focused on obesity epidemic

Less Suitable For

  • ✗Value investors concerned about valuation
  • ✗Risk-averse investors worried about competition
  • ✗Short-term traders (high volatility)
  • ✗Dividend-focused investors (low yield)

Investment Recommendation

Conclusion

Eli Lilly represents a generational investment opportunity as GLP-1 drugs reshape global healthcare. The combination of market leadership, oral drug advantage, manufacturing scale, and pipeline depth creates multiple competitive moats. While valuation has expanded, the PEG ratio suggests growth more than justifies the premium. The biggest risk is not competition but execution - can Lilly manufacture enough to meet insatiable demand? With management raising guidance repeatedly, execution appears excellent.

2025 Price Target
$1000-1100
Upside Potential
+22-35%
Risk Level
Moderate-High
Recommendation
Buy on pullbacks < $800

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