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Understanding Eli Lilly and Co's Position In Pharmaceuticals Industry Compared To Competitors

Published 05/04/2024, 16:00
Updated 05/04/2024, 17:10
©  Reuters Understanding Eli Lilly and Co's Position In Pharmaceuticals Industry Compared To Competitors
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Benzinga - by Benzinga Insights, Benzinga Staff Writer.

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 (NYSE: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.

CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth
Eli Lilly and Co 132.43 67.79 20.33 19.91% $3.03 $7.57 28.1%
Novo Nordisk A/S 46.11 35.95 16.62 22.01% $28.51 $55.85 36.95%
Johnson & Johnson 29.33 5.34 4.59 5.78% $6.82 $14.6 7.3%
Merck & Co Inc 911.86 8.60 5.41 -3.11% $-0.77 $10.72 5.78%
AstraZeneca PLC 35.35 5.33 4.59 2.52% $2.18 $9.72 7.29%
Novartis AG 23.63 4.24 4.34 19.99% $4.18 $8.75 7.39%
Pfizer Inc 72.03 1.70 2.57 -3.62% $-1.77 $6.69 -41.34%
Sanofi SA 20.66 1.50 2.40 -0.75% $0.42 $8.15 6.5%
Bristol-Myers Squibb Co 13.32 3.54 2.37 6.03% $4.45 $8.73 0.62%
GSK PLC 13.55 4.97 2.20 2.64% $1.16 $5.63 9.16%
Zoetis Inc 32.65 15.17 8.96 10.42% $0.83 $1.49 8.48%
Takeda Pharmaceutical Co Ltd 36.33 0.95 1.55 1.53% $314.89 $731.71 1.33%
Viatris Inc 235.20 0.68 0.92 -3.7% $-0.07 $1.6 -1.0%
Dr Reddy's Laboratories Ltd 19.39 3.78 3.73 5.29% $22.42 $42.2 6.57%
Jazz Pharmaceuticals PLC 18.87 1.92 2.16 2.61% $0.29 $0.9 4.1%
Corcept Therapeutics Inc 26.65 5.12 5.80 6.43% $0.03 $0.13 31.39%
Average 102.33 6.59 4.55 4.94% $25.57 $60.46 6.03%
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.dividend-frequency { font-size: 12px; color: #6c757d; } By analyzing Eli Lilly and Co, we can infer the following trends:

  • The Price to Earnings ratio of 132.43 for this company is 1.29x above the industry average, indicating a premium valuation associated with the stock.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 67.79 which exceeds the industry average by 10.29x.

  • With a relatively high Price to Sales ratio of 20.33, which is 4.47x the industry average, the stock might be considered overvalued based on sales performance.

  • The company has a higher Return on Equity (ROE) of 19.91%, which is 14.97% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

  • Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $3.03 Billion, which is 0.12x below the industry average, potentially indicating lower profitability or financial challenges.

  • The company has lower gross profit of $7.57 Billion, which indicates 0.13x below the industry average. This potentially indicates lower revenue after accounting for production costs.

  • The company's revenue growth of 28.1% is notably higher compared to the industry average of 6.03%, showcasing exceptional sales performance and strong demand for its products or services.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

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.

When comparing Eli Lilly and Co with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:

  • In terms of the debt-to-equity ratio, Eli Lilly and Co has a relatively higher level of debt of 2.34 compared to its top 4 peers.

  • This could be seen as a potential risk factor for the company, as a higher debt burden may increase financial vulnerability.

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 within the company.

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.

Read the original article on Benzinga

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