Introduction
Eli Lilly and Company (referred to as the company, Lilly, we, or us) was incorporated in 1901 in Indiana to succeed to the drug manufacturing business founded in Indianapolis, Indiana, in 1876 by Colonel Eli Lilly. The firm discover, develop, manufacture, and market products in a single business segment—human pharmaceutical products.
The company’s products includes diabetes products, oncology products, immunology products, neuroscience products and other products and therapies.
profitability analysis
Eli Lilly and Company(LLY) reported revenues of $28.5 billion,$28.3 billion and $24.5billion in 2022,2021 and 2020.
The revenues in 2021 is up 15.5% year on year.
The revenues in 2022 is up about 0.7% year on year, which is flat.
The revenues was $6.24 billion, $5.58 billion and $6.19 billion for 2022,2021 and 2020.
The net profit margin was about 22%, 19.7% and 25.2% in 2022 and 2021 and 2020.
Assets structure analysis
The total assets amounted $49.48 billion in fiscal 2022, compared with $48.8 billion in fiscal 2021.
The total current assets was $18 billion in 2022, which consisted of 36.3% of total assets.
The goodwill was $4 billion in 2022, which accounted for 8% of total assets.
The other intangible, net was $7.2 billion in 2022,which had 14.5% of total assets.
The property and equipment, net was $10.1 billion in 2022,which consisted of 20.4% of total assets.
Liquidity and solvency analysis
The current ratio was 1.05 in 2022.
The debt ratio was 78.3% in 2022.
From the data above to judge, the ability to repay debt seem inadequate, but cash flows would service debt.
The cash provided by operating activities was $7 billion, 7.2 billion and $6.49 billion in 2022,2021 and 2020.
Cash flow analysis
The purchases of property and equipment was $1.85 billion ,$1.3 billion and $1.38 billion in 2022,2021 and 2020.
The free cash flows was $5.23 billion for 2022.
The dividends paid was $3.5 billion in 2022.
The purchases of common stock was $1.5 billion in 2022.
Combining the dividends paid and purchases of common stock, we reckon Eli Lilly and Company(LLY) generate a return of $5 billion to shareholders in 2022.
Eli Lilly and Company(LLY)’s Q3,2023.
The revenues was $24.7 billion in the nine months ended September 30,2023,compared with $21.2 billion in the nine months ended September 30,2022 . The revenues increased by 16.5%.
The net income decreased from $4.3 billion in the nine months ended September 30,2023 to $3 billion in the nine months ended September 30,2022,because research and development increased by $1.56 billion.
The net cash provided by operating activities was $4.5 billion in the nine months ended September 30,2023, compared with $5.9 billion in the nine months ended September 30,2022.
Summary
In our opinion, Eli Lilly and Company(LLY) is ordinary and unremarkable.
Eli Lilly and Company(LLY)’market capitalization amount to approximately $600 billion ,and even PE is more than 100 times, which mean shareholders need to earn back their capital over a hundred year.
We reckon Eli Lilly and Company(LLY) is worth $80 billion or $84.3 per share. The stock price is at the peak of the bubble.
