Eli Lilly and Company (LLY)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Eli Lilly as a high-quality but richly priced growth company. The business is a global human-pharma manufacturer with a large cardiometabolic franchise. Reported results are impressive: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $23.0B, net income $7.1B, and diluted EPS $7.94; in fiscal Q1 2026 revenue was $19.8B, net income $7.4B, and diluted EPS $8.26. For fiscal 2025, revenue was $65.2B, net income $20.6B, and diluted EPS $22.95, well above fiscal 2024's $45.0B, $10.6B, and $11.71. FairStock's Lynch category is FAST GROWER, based on five-year profit growth of 27.2% a year and revenue growth of 21.6%. Quality metrics support the story: FairStock calculates ROE of 102.29% and ROCE of 20.36%, with TTM free cash flow of $13.6B. But the price leaves no Graham-style cushion. At the 2026-10-26 close of $1,279.14, FairStock shows P/E 43.00, P/B 33.66, PEG 1.69, EV/EBITDA 28.74, FCF yield 1.1%, Graham Number $159.49, and margin of safety -698.46%. Debt/equity is 1.62, Piotroski 5/9, while Altman Z 7.54 suggests low distress risk. The 0.60% dividend and beta 0.50 are modest and defensive. Wonderful business momentum, but the stock already discounts years of success; the numbers demand a wide margin of safety.

In plain English: Eli Lilly makes medicines, including diabetes and heart-related treatments. The business looks strong: sales and profits have grown quickly, and the latest quarter showed a high profit margin. But at $1,279.14 on 2026-10-26, the share price looks expensive compared with the company's profits, assets, and cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer