Eli Lilly and Company: Strong Growth Signals Backed by Consistent Halal Compliance

Company Overview

Eli Lilly and Company is a leading American pharmaceutical corporation headquartered in Indianapolis, Indiana, with a global footprint spanning operations in 18 countries and product distribution across approximately 125 markets.

Eli Lilly and Company (LLY) maintains a strong market presence driven by innovation in the healthcare sector. It reports an impressive profit margin of 81.3% and offers a dividend yield of 0.7%. The company’s market capitalization stands at 684.4B USD, reflecting its position as one of the most valuable players in its industry.

Halal Compliance

According to AAOIFI’s Shariah compliance standards, Eli Lilly and Company was deemed COMPLIANT based on the most recent financial data. LLY operates within a Halal-compliant industry. Its interest income ratio of 0.39% sits well within the 5% threshold. The interest-bearing debts ratio stands at 4.82%, and its liquid assets ratio at 2.37% — both comfortably within the 30% ceiling. To verify the current Halal status, please log in to purepofo.com.

Eli Lilly has shown a consistent track record of Halal compliance, reinforcing its credibility with Halal investors.

While financial ratios are favorable, Halal investors also weigh broader ethical considerations such as associations with conflict, human rights abuses, or social harm. Eli Lilly and Company has not been flagged by users for any controversial activities and remains COMPLIANT according to user-driven ethical indicators.

purepofo’s AI-driven compliance prediction model monitors subtle shifts in financial and ethical indicators — enabling investors to stay ahead of potential risks. Powered by 13 years of historical data and analysis across 7,000+ stocks, the model forecasts continued Halal alignment for Eli Lilly and Company.

Performance Assessment

LLY delivers a compelling growth profile, with revenue growth of 25.6%, signaling strength in Market Expansion. Its net income growth of 30.2% highlights a strong trajectory in Income Growth. A gross margin trend of 2.3% and an EBIT margin trend of 2.4% underscore continued improvement in Margin and Profitability Trends. However, its free cashflow trend of -337.1% indicates underperformance in Reinvestment Capacity. On the other hand, a share price growth of 45.4% confirms strong market confidence in the stock.

While LLY’s revenue variation of 1.45 suggests some volatility, its profit margins remain steady with a 0% variation, reflecting solid Profit Stability. The free cashflow yield, at 0.3%, points to challenges in Financial Strength. Nonetheless, LLY demonstrates a strong Dividend Trend, with dividend growth of 15.1%. Its dividend yield, however, remains modest with a 0.9% average — signaling potential limitations for income-focused investors.

LLY continues to demonstrate strength in Risk Exposure, supported by a robust Altman Z-score of 7.94. However, a net debt to EBITDA ratio of 1.99 places pressure on Financial Robustness. Free cashflow deviation of 91.4% reflects Cashflow Stability challenges. On the positive side, a solid dividend payout ratio of 44.2% reinforces Payout Quality. LLY maintains strength in Price Fluctuation, with a stock price volatility (standard deviation) of 2.5%. Its maximum price drawdown from peak, at 23.2%, shows resilience in Price Risks.

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Investment Potentials

Eli Lilly and Company demonstrates notable investment strengths in the following areas: its high Altman Z-score (7.94) affirms strong Risk Exposure management. The dividend payout ratio of 44.2% reinforces consistent Payout Quality. A contained stock price volatility of 2.5% highlights strength in Price Fluctuation. These factors represent LLY's core investment advantages.

We identified the following key risks for Eli Lilly and Company: the negative free cashflow trend (-337.1%) limits its Reinvestment Capacity. A revenue variation of 1.45 reveals instability in Revenue Streams. Additionally, a relatively low dividend yield (0.9%) may fall short of investor expectations. These areas warrant closer monitoring.

Eli Lilly and Company reflects a solid Growth profile based on purepofo’s weighted Business Lifecycle score, with clear signs of maturity across strategic and financial dimensions.