In This Article:
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Eli Lilly and Company (NYSE:LLY), it is a financially-sound company with a a strong history of dividend payments and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Eli Lilly here.
Reasonable growth potential with adequate balance sheet and pays a dividend
LLY’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that LLY manages its cash and cost levels well, which is an important determinant of the company’s health. LLY’s has produced operating cash levels of 0.45x total debt over the past year, which implies that LLY’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
LLY rewards its shareholders with attractive dividend yield, exceeding the low-risk savings rate, which is what investors expect when they take on the risk of investing in the stock market.
Next Steps:
For Eli Lilly, I’ve compiled three relevant factors you should further examine:
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Historical Performance: What has LLY’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Valuation: What is LLY worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LLY is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LLY? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.