Key Takeaways
- Quality: gross margin is 83.6% and ROE 86.0%, but free cash flow of $9.3B is about a third of the roughly $27.6B of implied net income.
- Growth: TTM revenue is up 38.6% and the five-year CAGR is 31.7%, with TTM earnings growth of 16.3%.
- Opportunity: the stock is at its two-year high with a 46.15 P/E and 28.01 EV/EBITDA, giving an Opportunity score of 11 out of 100.
Eli Lilly and Company closed at $1,421.96, which is its two-year high, up from a two-year low of $625.65, and its market cap is $1266.60B. This Eli Lilly and Company stock analysis looks at a drugmaker with 38.6% trailing revenue growth and an 83.6% gross margin, priced at 46.15 times earnings. The model signal is Hold: the business scores very well, but the price leaves little room in the valuation score.
What Is Happening With the Stock Price
The stock sits at the very top of its two-year range, having more than doubled from the low. Momentum is clearly strong, but a stock at its two-year high can also be sensitive to any disappointment in trial results, pricing or demand, and the data here does not say what drove the move.
Quality: Is This a Financially Sound Business?
Profitability is exceptional: gross margin is 83.6%, operating margin is 53.7% and net profit margin is 31.9%. Return on assets is 21.1% and return on equity is 86.0%, although the high ROE is partly the result of leverage. Debt-to-equity is 1.23, the current ratio is 1.39 and the quick ratio is 0.64, so liquidity is adequate rather than ample.
Cash conversion is the point to watch. Free cash flow over the trailing twelve months is $9.3B on $86.5B of revenue, while net income implied by the 31.9% margin is about $27.6B. Free cash flow is therefore roughly a third of net income, a FCF yield of 0.7%. Heavy capital investment is a plausible explanation, though the data does not confirm it. The Quality score is 81 out of 100, and this Eli Lilly and Company stock analysis treats the cash gap as the main caveat.
Growth: Does This Company Have Real Upside?
Trailing-twelve-month revenue growth is 38.6% and the five-year revenue CAGR is 31.7%, so growth has been both fast and sustained. Earnings growth over the trailing twelve months is 16.3%, slower than revenue, which suggests costs are rising along with sales. EV/Revenue of 15.06 shows how much of this growth is already expected. The Growth score is 83 out of 100, the highest of the three pillars.
Opportunity: Is Now a Good Time to Enter?
This is where the score drops. A P/E of 46.15, EV/EBITDA of 28.01 and price-to-book of 31.47 are demanding, and the dividend yield is 0.5%, with a payout ratio of 21.7%. Being at the top of its two-year range also removes any entry-price cushion. The Opportunity score is 11 out of 100. A slowdown in growth, a drug-pricing or regulatory change, or competition could compress a multiple this high.
Eli Lilly and Company Stock Analysis: The Bottom Line
The bull case is strong: high margins, fast and durable revenue growth, and rising earnings. The bear case is valuation, with free cash flow well below earnings and a share price that already reflects much of that success. Quality 81, Growth 83 and Opportunity 11 combine into a Recommendation Score of 58 out of 100, just under the Buy threshold, and a Hold signal. This is the output of StreetBriefs’ quantitative scoring model, a data-driven signal for further research, not a personalized recommendation to transact.
Financial Metrics Summary
| Metric | Value |
|---|---|
| Price & Valuation | |
| Current Price | $1,421.96 |
| 2-Year Low | $625.65 |
| 2-Year High | $1,421.96 |
| Market Cap | $1266.60B |
| P/E Ratio | 46.15 |
| EV / Revenue | 15.06 |
| Our Scores | |
| Quality Score | 81 / 100 |
| Growth Score | 83 / 100 |
| Opportunity Score | 11 / 100 |
| Profitability | |
| Earnings Per Share | $30.81 |
| Return on Assets | 21.1% |
| Return on Equity | 86.0% |
| Net Profit Margin | 31.9% |
| Gross Margin | 83.6% |
| Operating Margin | 53.7% |
| Growth | |
| Revenue Growth (5Y CAGR) | 31.7% |
| Revenue Growth (TTM) | 38.6% |
| Earnings Growth (TTM) | 16.3% |
| Balance Sheet | |
| Debt-to-Equity | 1.23 |
| Current Ratio | 1.39 |
| Quick Ratio | 0.64 |
| Income & Dividends | |
| Dividend Yield | 0.5% |
| Payout Ratio | 21.7% |
Data as of November 11, 2026
Our Three-Pillar Assessment
| Quality |
81/100 |
| Growth |
83/100 |
| Opportunity |
11/100 |
Quality measures business fundamentals: profitability, cash flow discipline, and balance sheet strength.
Growth captures revenue momentum, gross margin scalability, and the Rule of 40 efficiency test.
Opportunity signals entry timing: current valuation versus history and price position in the 2-year range.
Current price: $1421.96 trading 0% above its 2-year high of $1421.96.
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This analysis is done using financial data from Yahoo Finance.
Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.
