CluenexEli Lilly and Company LLY
Eli Lilly and Company scores excellent on business quality (8.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Eli Lilly and Company does
Eli Lilly discovers, develops, and markets human pharmaceuticals, generating revenue primarily from blockbuster metabolic and oncology treatments paid for by healthcare systems and insurers. The company is aggressively expanding manufacturing capacity to meet unprecedented global demand for its incretin therapies.
- What it does best
Eli Lilly commands an operating margin of 49.7%, crushing peers like Merck at 16.2% and Johnson & Johnson at 27.9%. This elite profitability stems from unmatched pricing power and demand concentration in high-margin metabolic blockbusters that competitors struggle to match.
- The main risk
Massive capital expenditure of $14.5B to expand manufacturing capacity risks severe oversupply if demand for incretin therapies stalls or generic alternatives emerge faster than anticipated.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin sits at an elite 83.4% and operating margin hits 49.7%, both expanding rapidly as high-volume manufacturing efficiencies scale up production.
Patents and massive biomanufacturing scale lock in global healthcare systems, anchoring an operating margin in the sector's top decile at the 98th percentile.
Revenue surged 44.7% over the latest period, sitting in the top decile of its sector at the 96th percentile and accelerating sharply compared to historical levels.
Debt-to-equity of 1.6x is backed by $7.4B in cash and interest coverage of 36.7x, keeping debt costs manageable while free cash flow reaches $13.6B, rapidly getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on LLY
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Eli Lilly and Company scores excellent on the Cluenex quality check (8.4 of 10), measured against its own industry. Profitability is strong, moat strong, growth fast and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026.
See LLY today
- Today's verdict on LLY, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Eli Lilly and Company (LLY)”, https://cluenex.com/stocks/lly/, data as of Oct 10, 2026.