Important note

This AI stock analysis for Eli Lilly and Company is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Eli Lilly and Company - AI Stock Analysis

Analysis generated January 4, 2025

Eli Lilly and Company (NYSE: LLY) is a leading pharmaceutical company known for its innovation in healthcare solutions. Established in 1876, Eli Lilly has a rich history of developing life-changing medications, including drugs for diabetes, cancer, and autoimmune diseases. With a strong focus on research and development, Eli Lilly has consistently delivered new treatments that address critical health challenges globally. The company operates in numerous segments including human pharmaceuticals and animal health, serving markets worldwide.

Fundamental Analysis

Eli Lilly reported a revenue of $11.4 billion for the last quarter, marking a 1.21% increase from the previous quarter. This gradual growth is a positive indicator of sustained company performance. More impressively, this is a 20.43% increase compared to the same quarter last year, highlighting robust year-over-year growth.

However, the net income for the last quarter was $970 million, which is a substantial 67.30% decrease compared to the quarter before. This sharp decline warrants investor caution. Despite this, compared to the same quarter the previous year, there is a stunning 1,790.42% increase in net income, showing a remarkable annual performance.

The EBITDA for the last quarter was $2.25 billion, a decrease of 45.38% from the previous quarter. Year-over-year, EBITDA decreased by 64.88%, which suggests potential operational efficiency issues. The current P/E ratio stands at 83.37, which is considered high and may indicate that the stock is overvalued.

Technical Analysis

Eli Lilly's stock price at $781.98 represents a 5.77% decrease from a month ago, indicating short-term bearish trends. However, the stock price has increased by 27.25% compared to a year ago, showing long-term bullish potential despite recent fluctuations.

The trend for Eli Lilly is currently bearish. The Simple Moving Average over the last 10 days (SMA10) is 780.35, lower than the previous SMA10 of 781.72, which signals a potential downward trend in price movement. The Relative Strength Index (RSI) is at 60, indicating a neutral condition as it is neither strongly overbought nor oversold.

Alternative Data Analysis

On the employment front, Eli Lilly has 967 open positions according to data from popular job boards. The stability of this number over the last few months suggests a steady operational state. With 84% of employees having a positive business outlook, the internal sentiment is highly favorable.

Customer engagement metrics reveal 3.6 million visitors to Eli Lilly’s webpage with no significant change in recent months. This stability suggests consistent interest in the company. The company's Instagram follower count has risen by 4% to 40,000, indicating growing interest among users. Conversely, Twitter followers have decreased by 1% to 140,000, which might reflect a slight decline in engagement.

AltIndex's AI score for Eli Lilly, which considers fundamental, technical, and alternative data, stands at 54, indicating a 'hold' signal.

Conclusion and Recommendation

Eli Lilly and Company presents a mixed outlook from a financial perspective. On the positive side, the company has shown consistent revenue growth and a remarkable year-over-year increase in net income. However, short-term profitability metrics such as net income and EBITDA have declined significantly, and the current high P/E ratio could suggest overvaluation.

From a technical perspective, the short-term bearish trend and mixed alternative data such as stable job postings and varied social media engagement also contribute to a cautious outlook. Based on the AI score and the broader analysis, Eli Lilly and Company could be considered a 'hold' for investors. It could be beneficial to monitor upcoming financial reports for signs of operational recovery or further decline.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.