Business quality: stronger than mostValuation: pricier than most
A stronger business than most health care companies, priced above most of them.
Eli Lilly trades at 36.3 times the next 12 months of expected earnings, against a median of 19.1x for the 65 health care stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.
- Revenue grew faster than the sector median: +45.5% vs +7.8%
- Keeps more of each sale (gross margin): 83.6% vs 65.3%
- Keeps more of its revenue as profit (net margin): 31.9% vs 9.7%