Eli Lilly Receives High Rating from Guru Strategy

Eli Lilly and Co (LLY) stood out with an 88% rating under the P/B Growth Investor model, indicating strong interest from investors. The growth stock demonstrates solid fundamentals despite a failure in R&D to assets ratio.

Date: 21-02-2025

AI Rating: 7

Stock Rating
Eli Lilly and Co (LLY) has attained an impressive 88% rating according to the P/B Growth Investor model. This high score indicates that the company exhibits strong underlying fundamentals and is seen positively in the market. Typically, a score of 80% or higher signifies interest from this investment strategy.

Key Financial Metrics
The analysis indicates that LLY passes several key financial metrics critical to the growth investor strategy, including:
- Book/Market Ratio: PASS
- Return on Assets: PASS
- Cash Flow from Operations to Assets: PASS
- Cash Flow from Operations to Assets vs. Return on Assets: PASS
- Return on Assets Variance: PASS
- Sales Variance: PASS
- Advertising to Assets: PASS
- Capital Expenditures to Assets: PASS
This positive set of indicators suggests that Eli Lilly’s financial health is robust and supports future growth potential.

However, it is noteworthy that the stock failed on one key metric:
- Research and Development to Assets: FAIL
This failure could raise concerns regarding the company’s commitment to innovation, which is critical in the biotechnology and drugs sector. Despite this, the strong performance in other areas suggests a potential for continued investment interest.

Impact on Stock Prices

Stocks: LLY