Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drugmaker Eli Lilly
With that in mind, let's take a closer look at Lilly's business and see what CAPS investors are saying about the stock right now.
Lilly facts
| Headquarters (Founded) | Indianapolis (1876) |
| Market Cap | $45.5 billion |
| Industry | Pharmaceuticals |
| Trailing-12-Month Revenue | $23.4 billion |
| Management | Chairman/CEO John Lechleiter CFO Derica Rice |
| Return on Capital (Average, Past 3 Years) | 23% |
| Cash/Debt | $6.7 billion / $6.7 billion |
| Dividend Yield | 5% |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 1,366 members who have rated Lilly believe the stock will outperform the S&P 500 going forward. These bulls include DSmod and witness1260.
Late last month, DSmod tapped Lilly as an enticing way to make some income: "Historically low price for a solid company with a good dividend to tide you over while you wait for better times. I also like that because it is a drug developer, LLY's success is not necessarily bound to the economy."
Currently, Lilly even sports a particularly paltry P/E of 9. That represents a clear discount to big pharma plays such as Johnson & Johnson
CAPS member witness1260 elaborates on the bargain opportunity:
Look, I can see why people might be a little worried about Eli Lilly. They have a lot of debt and have posted operating losses the past few years. But they're on the right track. [R]evenues continue to grow and they continue to invest in growth. Plus, they beat out the industry across the board, notably in the efficiency categories and in gross margin and dividend yield. I think ... that long term, this stock will catch up to the S&P.
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