Also on Feb 21, I added 1/4 more to my position in LLY. I hold LLY in my retirement account because it is a high dividend yielder (5%). I now own 1/2 of my target position in LLY.
In November of last year, I initiated a position at $38 per share. A few days ago I added to that postition at $39 per share.
LLY seems inexpensive with a PE value of 9.9453, below the Biotechnology & Drugs industry median PE of 17.95.
LLY is one of the more profitable companies in the Biotechnology & Drugs industry with a net margin of 17.90%.
Schwab Equity Rating on LLY is ‘A”. In their report, Schwab says, LLY will “Strongly Outperform” the broad market. With positive valuations on Cash Flow Strength, Capital Intensity, Income Statement Valuation, Track Record of Positive EPS Surprises and Business Geographic Diversification, Schwab rates LLY in the top 3 percentile rating.
The Street Rates LLY ‘A-‘ Buy.
The company’s strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Eli Lilly and Company discovers, develops, manufactures and sells products in one business segment, pharmaceutical products. It also has an animal health business segment. The Company manufactures and distributes its products through facilities in the United States, Puerto Rico, and 17 other countries. Its products are sold in approximately 125 countries.
Products include neuroscience products, endocrinology products, oncology products, cardiovascular products, animal health products and other pharmaceuticals.
In the United States, Eli Lilly and Company distributes pharmaceutical products principally through independent wholesale distributors, with some sales directly to pharmacies.
During the year ended December 31, 2010, it acquired Alnara Pharmaceuticals, Inc. and Avid Radiopharmaceuticals, Inc. On May 28, 2010, it acquired the European marketing rights to several animal health product lines divested by Pfizer Inc., as part of its acquisition of Wyeth, Inc.