Eli Lilly and Company fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 11, 2026.
Eli Lilly and Company gets a balanced fundamental read when revenue growth of 24.42%, EPS growth of 28.88%, free-cash-flow growth of 32.91%, net margin of 33.53%, and ROIC of 27.38% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 1.35x and debt-to-equity is 1.62x, so the balance-sheet read is part of the final view rather than a footnote.
Eli Lilly and Company has market cap of $1.05T and closed at $1,115 on September 11, 2026.
Five-year revenue CAGR is 24.42% and five-year EPS CAGR is 28.88%.
Five-year free-cash-flow CAGR is 32.91%.
Net margin is 33.53% and ROIC is 27.38%.
Current ratio is 1.35x and debt-to-equity is 1.62x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Analyzing Eli Lilly and Company requires evaluating whether top-line expansion, earnings efficiency, cash flow generation, capital allocation productivity, and balance sheet health align to present a unified investment profile. With the market pricing the equity at $1,115 as of September 11, 2026, this analysis anchors its assessment in historical operating performance before addressing market valuation.
The core fundamental framework begins by examining a five-year revenue CAGR of 24.42% alongside a five-year EPS CAGR of 28.88%, subsequently testing this expansion against a five-year free-cash-flow CAGR of 32.91%. A rigorous evaluation avoids relying on a single trajectory, cross-referencing multiple operational vectors to gauge underlying business health.
Current compounder snapshot · LLY
Live supporting context; not part of the article's frozen 2026-09-11 evidence snapshot.
As an active participant in the Healthcare sector, Eli Lilly and Company must be evaluated through its tangible operational metrics rather than market sentiment. This initial snapshot integrates market capitalization, valuation multiples, historical growth rates, efficiency ratios, and leverage metrics to establish a comprehensive baseline before analyzing individual financial statements.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered. Q2 FY2026 (2026-06-30): $22.97B.
+342.51% over 10Y
tgmcharts.com
Five-year revenue CAGR: 24.42%. This is endpoint-to-endpoint across the five-year window — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 24.42% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Analyzing Top Line to Net Income Conversion Efficiency
Assessing conversion efficiency involves verifying whether top-line expansion successfully translates into per-share earnings. A five-year revenue CAGR of 24.42% represents the baseline demand expansion, while a five-year EPS CAGR of 28.88% indicates the rate of return captured for shareholders. When net income expansion outpaces top-line growth, a detailed investigation must confirm whether this outperformance stems from operational efficiencies or non-operating adjustments.
EPS
LLY EPS
$7.95
EPS history shows how much of the business growth has reached shareholders. Q2 FY2026 (2026-06-30): $7.95.
≈11x over 10Y
tgmcharts.com
Five-year EPS CAGR: 28.88%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 28.88% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Earnings Quality with Free Cash Flow Generation
Free cash flow serves as the primary operational check against reported accounting profits. With a five-year free-cash-flow CAGR of 32.91%, the cash generation trend can be compared directly against the net income trajectory. A persistent divergence where cash generation trails net income would suggest that reported earnings may not fully reflect the underlying cash dynamics of the business.
free cash flow
LLY free cash flow
$7.76B
Free cash flow checks whether earnings are converting into owner cash. Q2 FY2026 (2026-06-30): $7.76B.
+441.80% over 10Y
tgmcharts.com
Five-year free-cash-flow CAGR: 32.91%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 32.91% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Assessing Net Margins and Capital Allocation Returns
The sustainability of historical expansion depends on maintaining a net margin of 33.53% alongside a return on invested capital (ROIC) of 27.38%. The net margin illustrates the proportion of revenue retained as profit, while the ROIC measures the productivity of deployed capital, indicating whether ongoing corporate reinvestment generates value above the cost of capital.
net margin
LLY net margin
30.88%
Net margin is the operating-quality check behind the growth record. Q2 FY2026 (2026-06-30): 30.88%.
+15.9pp over 10Y
tgmcharts.com
Net margin (TTM): 33.53%. The bars below are reported fiscal periods (quarterly where available).
Net margin of 33.53% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
ROIC
LLY ROIC
27.38%
ROIC tests whether the business earns enough on reinvested capital to deserve attention. Q2 FY2026 (2026-06-30): 27.38%.
+17.5pp over 10Y
tgmcharts.com
Latest ROIC: 27.38%.
ROIC of 27.38% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Benchmarks and Leverage Constraints
Balance sheet durability provides the operational boundaries for long-term corporate expansion. Currently, the current ratio stands at 1.35x while the debt-to-equity ratio is positioned at 1.62x. These metrics are critical because robust historical growth and high margins can be compromised if short-term liquidity contracts or if leverage limits operational flexibility.
debt-to-equity
LLY debt-to-equity Chart
1.60x
Debt-to-equity keeps the checkup honest about balance-sheet flexibility. Historical series through 2025-12-31.
-45.58% over 5Y
tgmcharts.com
Latest debt-to-equity ratio: 1.62x.
Debt-to-equity of 1.62x and current ratio of 1.35x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples and Implied Growth Expectations
Market valuation represents the hurdle rate the business must justify through future execution. Trading at a trailing price-to-earnings ratio of 37.42x and offering an earnings yield of 2.67%, the equity's current price sits above the analyst DCF (FMP) reference. This premium indicates that the market has already priced in a significant portion of the historical operational performance.
The close at $1,115 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Key Operational Strengths and Potential Failure Points
The positive operational thesis relies on revenue, net income, free cash flow, and capital returns continuously reinforcing the historical trajectory. Conversely, the primary risk involves a deceleration in cash conversion or an unexpected contraction in margins, which would leave the current valuation multiple vulnerable if operational execution falls short of historical averages.
Bull and bear case
Fundamental support
Five-year revenue CAGR of 24.42% and five-year EPS CAGR of 28.88% support the business case.
Net margin of 33.53% and ROIC of 27.38% are the quality checks behind the thesis.
Fundamental pressure
Free-cash-flow CAGR of 32.91% can weaken the read if it falls away from EPS growth.
Debt-to-equity of 1.62x and current ratio of 1.35x are the balance-sheet checks that can change the view.
Synthesis and Conditions for Analytical Revision
This fundamental assessment is based on the historical data available up to the reporting period. Significant shifts in future revenue growth, cash flow conversion, capital returns, or leverage ratios from the levels documented above would require a formal revision of this analytical framework. This profile is intended as institutional research context and does not constitute investment advice.
FAQ
What is the fundamental read on LLY?
Eli Lilly and Company is judged through revenue growth of 24.42%, EPS growth of 28.88%, free-cash-flow growth of 32.91%, net margin of 33.53%, and ROIC of 27.38%.
Which LLY fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this LLY checkup refresh?
Its figures are as of September 11, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
Revenue growth moving away from the current five-year CAGR of 24.42%.
Free-cash-flow growth drifting away from five-year EPS CAGR of 28.88%.
ROIC or balance-sheet flexibility weakening from ROIC of 27.38% and debt-to-equity of 1.62x.
The bottom line
Eli Lilly and Company fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
“Revenue of Mounjaro increased 45 percent and 51 percent in the U.S.”
“Revenue of Zepbound increased 44 percent and 58 percent in the U.S.”
“Gross margin as a percent of revenue for the six months ended June 30, 2026 increased 0.5 percentage points, primarily driven by improved cost of production, partially offset by lower realized prices.”
“Research and development expenses increased 14 percent and 21 percent for the three and six months ended June 30, 2026, respectively, driven by continued investments in our early and late-stage portfolio.”
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.
