Eli Lilly Scores High in Guru Fundamental Report

Eli Lilly has received an impressive 88% rating in a guru fundamental report, showcasing strong underlying fundamentals and stock valuation that could positively impact its market performance and stock price.

Date: 11-03-2025

AI Rating: 7

Company Overview

Eli Lilly and Co (LLY) has been evaluated through the P/B Growth Investor growth model, indicating a significant level of interest based on its financial fundamentals. With a score of 88%, this suggests that the company is in a favorable position to sustain future growth.

Book/Market Ratio

The report highlights a passing score for the book/market ratio, which is a positive indicator of the company's valuation. Investors often look favorably at firms with a low book-to-market ratio, which could lead to an increase in stock price as they are perceived as undervalued.

Return on Assets (ROA)

Eli Lilly's return on assets score is also a pass. A high return on assets is indicative of efficient management and effective use of resources to generate profit.

Cash Flow Analysis

Passing scores in both cash flow from operations to assets and the relationship between cash flow from operations to assets versus return on assets signify that Eli Lilly retains strong operational efficiency and can cover its asset liabilities comfortably. This can be viewed positively by investors who prioritize stability and growth potential.

Sales and Variance

The passing score in sales variance further reinforces the company’s reliable revenue generation capabilities. Stable sales figures are crucial as they often correlate with future earnings and investor confidence.

Weak Point: Research and Development (R&D)

However, Eli Lilly's failing score in the research and development to assets category may concern investors. R&D is crucial for innovation, especially in the biotechnology and pharmaceuticals sectors. A weak performance in this area could signal potential future growth challenges if the company does not actively invest in new products or enhancements.

Overall, the report highlights that while Eli Lilly has significant strengths that could enhance its market performance, investors should keep an eye on its R&D capabilities, which could impact long-term growth.

Stocks: LLY