Below is Validea’s guru fundamental report for ELI LILLY AND CO (LLY). Of the 22 guru strategies we follow, LLY rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
ELI LILLY AND CO (LLY) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
BOOK/MARKET RATIO: | PASS |
RETURN ON ASSETS: | PASS |
CASH FLOW FROM OPERATIONS TO ASSETS: | PASS |
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: | PASS |
RETURN ON ASSETS VARIANCE: | PASS |
SALES VARIANCE: | PASS |
ADVERTISING TO ASSETS: | PASS |
CAPITAL EXPENDITURES TO ASSETS: | PASS |
RESEARCH AND DEVELOPMENT TO ASSETS: | FAIL |
Detailed Analysis of ELI LILLY AND CO
More Information on Partha Mohanram
About Partha Mohanram: Sometimes the best investing strategies don’t come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper “Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis” looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don’t. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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