ELI LILLY & Co (LLY) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 44.5%. FCF margin 35.3%. D/E 1.6x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	44.5%	Above industry average
FCF Margin	35.3%	Strong cash generation
Debt/Equity	1.6x	Elevated debt

ROIC 44.5% — Top 5% of sector peers. FCF margin 35.3% — Top 5%.

Explore ELI LILLY & Co: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for LLY: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: ELI LILLY & Co earns 44.5% ROIC, Top 5% in Healthcare

ROIC TTM 44.5%, sector median -4.9%, Top 5%. DuPont: NOPAT margin 39.5% × asset turnover 0.7x. Gross margin 83.4%. Operating margin 49.7%. Source: 10-Q filed 2025-10-30.

Metric	LLY	Rating	Context
Return on Invested Capital (ROIC)	44.5%	Excellent	Above sector median of -4.9%
Return on Equity (ROE)	99.3%	Excellent	Efficient use of shareholder equity
Gross Margin	83.4%	Excellent	Strong pricing power
Operating Margin	49.7%	Excellent	Efficient operations

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Cash Flow: ELI LILLY & Co generates $28.1B FCF at 35.3% margin, positive NaN/8 quarters

FCF TTM $28.1B. FCF margin 35.3%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	LLY	Rating	Context
Free Cash Flow Margin	35.3%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$28.1B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: ELI LILLY & Co at 1.6x leverage

Debt/Equity 1.6x. Total debt $54.9B, cash & investments $9.0B. Source: 10-Q filed 2025-10-30.

Metric	LLY	Rating	Context
Debt to Equity	1.6x	Warning	Elevated leverage
Net Cash Position	$-45.9B	Warning	Net debt position

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Valuation: ELI LILLY & Co trades at 40.2x earnings

P/E 40.2x. EV/Sales 11.6x. FCF yield 2.6%. Dividend yield 0.5%. Source: 10-Q filed 2025-10-30.

Metric	LLY	Rating	Context
P/E Ratio	40.2x	Adequate	Premium valuation
EV/Sales	11.6x	Warning	Growth premium priced in
FCF Yield	2.6%	Adequate	Lower cash yield
Dividend Yield	0.5%	Adequate	Growth focus over income

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Capital Allocation: ELI LILLY & Co returns 1.1% shareholder yield

Total shareholder yield 1.1% (div 0.5% + buyback 0.6%). Capital returned $12.0B TTM. Source: 10-Q filed 2025-10-30.

Metric	LLY	Rating	Context
Total Shareholder Yield	1.1%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.6%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$12.0B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	44.5%	Top 5%	-
Free Cash Flow Margin	35.3%	Top 5%	-
Gross Margin	83.4%	Top 25%	1.3x above
Operating Margin	49.7%	Top 5%	40.5x above
Return on Equity (ROE)	99.3%	Top 5%	-
P/E Ratio	40.2x	N/A	-

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Financial Scorecard

Metric	LLY	Rating	Sector Context
Return on Invested Capital (ROIC)	44.5%	Excellent	Top 5% of sector (median: -4.9%)
Free Cash Flow Margin	35.3%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	83.4%	Excellent	Top 25% of sector (median: 64.0%)
Debt to Equity Ratio	162.1%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	40.2x	Adequate	High expectations priced in
Free Cash Flow Yield	2.6%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is ELI LILLY & Co's Return on Invested Capital (ROIC)?

ELI LILLY & Co (LLY) has a trailing twelve-month Return on Invested Capital (ROIC) of 44.5%. Sector median -4.9%. Source: 10-Q filed 2025-10-30.

Q: What is ELI LILLY & Co's Free Cash Flow Margin?

ELI LILLY & Co (LLY) has a free cash flow margin of 35.3%, generating $28.1 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.

Q: What is ELI LILLY & Co's P/E ratio and how does it compare to peers?

ELI LILLY & Co (LLY) trades at a P/E ratio of 40.2x, which is above the sector median of N/A. EV/Sales 11.6x. FCF yield 2.6%. Source: 10-Q filed 2025-10-30.

Q: Does ELI LILLY & Co pay a dividend?

ELI LILLY & Co (LLY) currently pays a dividend yield of 0.5%. Total shareholder yield (dividend + buybacks) 1.1%. Source: 10-Q filed 2025-10-30.

Q: How much debt does ELI LILLY & Co have?

ELI LILLY & Co (LLY) has a debt-to-equity ratio of 1.6x with total debt of $54.9 billion. Net debt $45.9 billion. Source: 10-Q filed 2025-10-30.

Q: What is ELI LILLY & Co's revenue and earnings growth?

ELI LILLY & Co (LLY) grew revenue by 49.6% year-over-year. EPS +94.8% YoY. Source: 10-Q filed 2025-10-30.

Q: Is ELI LILLY & Co buying back stock?

ELI LILLY & Co (LLY) repurchased $6.2 billion of stock over the trailing twelve months. This represents a buyback yield of 0.6%. Source: 10-Q filed 2025-10-30.

Q: How does ELI LILLY & Co compare to competitors in Healthcare?

Compared to other companies in Healthcare, ELI LILLY & Co (LLY) shows: ROIC 44.5%, sector median -4.9% (Top 5%). FCF margin 35.3%, sector median 0.0% (Top 5%). Gross margin 83.4%, 19.4pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with ELI LILLY & Co?

Quantitative warning flags for ELI LILLY & Co (LLY): 1) debt/equity 1.6x (above 1.5x threshold). Source: 10-Q filed 2025-10-30.

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Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.