NYSE:LLY
$35.20
(2/9 2:47PM)
+1.2%
| Open | $34.95 |
Mkt Cap | $40.0 Billion |
| High | $35.47 |
52Wk High | $38.00 |
| Low | $34.86 |
52Wk Low | $27.21 |
| Volume | 6.7 Million |
Avg Vol 10D | 7.7 Million |
Ockham's Rating/Recommendation Summary
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LLY Revenue
As a value investing shop, we are interested in seeing how LLY's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 4.72x and the low end of the range at 3.31x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for LLY of 1.88x is well below its normal historic Price to Sales levels. At a price of $34.52, LLY is 54% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
LLY Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently LLY is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for LLY to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 33.24 and a 23.76 low over the same period.
Therefore, at the current price of $34.52 and a Price to Cash Earnings ratio of 40.14, LLY is significantly overvalued. This diminishes the attractiveness of LLY until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 40% is needed just to return to the historical cash earnings multiple.
LLY Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for LLY, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. LLY’s estimated annual dividend is $1.96 resulting in a current dividend yield of 5.68%. The highest dividend yield from LLY over recent history was 7.20% while the lowest dividend yield was 1.18%. LLY’s current dividend yield is therefore significantly higher than its median dividend yield historically. In fact, the current yield is 35.56% above the median which weighs very positively on our analysis of LLY.
Eli Lilly & Company EPS: A Hot Topic on Seeking Alpha Wall St Breakfast
Seeking Alpha Wall St Breakfast discussed earnings per share, which is one of the metrics we look at most closely. At Ockham, anytime earnings are discussed we must pay attention.
The latest news on LLY has created quite a stir as the stock is trading $1.87 higher in today's session. Eli Lilly & Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; LLY has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… (PR) ELI LILLY (LLY): Q4 EPS of $0. 91 misses by $0. 01. Revenue of $5. 9B (+13%) vs. $5. 7B. (PR) Estee Lauder (EL): FQ2 EPS of $1. 28 beats by $0. 07. Revenue of $2. …”
Power Lunch Has Something to Say About LLY and Regulators
RazorWire news analytics has noted a discussion of LLY that may be related to a regulators or the Fed on Power Lunch.
The latest news on LLY has created quite a stir as the stock is trading $2.09 higher in today's session. We noticed recently that in comparison to all other stocks we analyze in the news; LLY has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Eli Lilly & Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… Dendreon disclosing a 5% stake taken by steve cohn's sec capital and they mentioned pharma movers and ELI LILLY is actually the biggest dollar and percentage gainer in the group ... …”
News Developing on The Opening Bell on Fox Business for LLY
The latest news on The Opening Bell on Fox Business in regards to LLY came through on RazorWire recently.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Eli Lilly & Company has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on LLY. The Motley Fool CAPS data suggests that investors believe Eli Lilly & Company will beat the market in the foreseeable future.
“… Com have been for imax inside a handful of pharmaceutical deals and walk you through, a mid stage drug to ELI LILLY will get 90 million dollars back as a result. Shares are up ... …”
Stocks to Watch: LLY Heavily Covered on Countdown to the Closing Bell
We are observing a lot of attention being paid to LLY in the news, so if you hold the stock you may want to take a look at what is going on.
The Ockham valuation currently has a Fairly Valued stance on LLY because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Eli Lilly & Company has actually sunk a bit in comparison to the others.
“… ELI LILLY, out look for the long term iffy. The stock down 4% for the day. The airlines, one group showing a nice bright spot today seeing september traffic rising for the ... …”
A Few Words from Closing Bell on Eli Lilly & Company and Sentiment
Closing Bell talked about the sentiment surrounding LLY and the way they are perceived in the marketplace.
Eli Lilly & Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; LLY has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Mike huffman with the latest tough day for the drug stocks today and certainly ELI LILLY. > > the countdown after this > > …”
Its All About Earnings: Closing Bell Talks About LLY
In our methodology at Ockham we weight earnings performance heavily, so we always pay attention to earnings news coming from legitimate sources like Closing Bell.
Eli Lilly & Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; LLY has received less coverage from the financial media in business television and blogs.
“… ELI LILLY putting out financial shares of the drugmaker are down more than a dollar a share. 4% low or lilly. Cnbc's reporter is at the company's analyst meet reith now in new ... …”
LLY Having an Active Day in News, Now on Closing Bell
Something important is going on with LLY today, as it is getting a lot of attention on business television and influential blogs.
The Ockham valuation currently has a Fairly Valued stance on LLY because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Eli Lilly & Company has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Andach to the ELI LILLY analyst meeting. Find out what is next for the pharma ingredient and what is driving the stock sharply lower in today's session. …”
News on Earnings Per Share for LLY on Squawk On The Street
We thought our clients would like to be aware of a news story involving LLY's earnings per share.
Eli Lilly & Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; LLY has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Quoting now this is not our lilly executives will spend the next few hours detailing their drug development pipeline and updating their financial so ELI LILLY says that it expects ... …”
Squawk On The Street: LLY is Among Most Active Stocks in the News Today
LLY has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, LLY has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on LLY. The Motley Fool CAPS data suggests that investors believe Eli Lilly & Company will beat the market in the foreseeable future.
“… Cnbc's farmer reporter mike huckman is at the ELI LILLY analysts day with another first on cnbc interview speaking with the drugmaker's ceo earlier this he joins us now with some ... …”
Did You See LLY's CEO Lechleiter on The Opening Bell on Fox Business?
Staying in touch with the latest management news is one way we are keeping our clients informed. Notice, RazorWire has a news capture related to LLY's CEO.
Eli Lilly & Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; LLY has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… pharmaceutical giant, ELI LILLY having an investment meeting. The chairman and ceo says he's not worried about the patents expiring on his company's drugs in the next couple of ... …”