Eli Lilly and CoHAM:LLY +3.96%98 Pretax Margin % is 44.70% as of Mar. 2026, which is 97% above its 10-year median of 22.67. GuruFocus rates HAM:LLY with a GF Score™ of 98/100 and a GF Value™ of €1,212.75 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Eli Lilly and Co ranks better than 96.34% on this metric.
The historical rank and industry rank for Eli Lilly and Co's Pretax Margin % or its related term are showing as below:
HAM:LLY'
s Pretax Margin % Range Over the Past 10 Years
Min: 11.54 Med: 22.67 Max: 43.08
Current: 43.08
HAM:LLY's Pretax Margin % is ranked better than 96.34% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.28
vs HAM:LLY: 43.08
Eli Lilly and Co (HAM:LLY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Eli Lilly and Co Pretax Margin % Related Terms
Eli Lilly and Co Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Eli Lilly and Co's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:LLY vs JNJ, ABBV, MRK: Pretax Margin % Comparison
For the Drug Manufacturers - General subindustry, Eli Lilly and Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eli Lilly and Co Pretax Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Eli Lilly and Co's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Eli Lilly and Co (HAM:LLY) has a Pretax Margin % of 44.70% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Eli Lilly and Co and its competitors. This is 97% above median its historical median of 22.67. Over the past decade, Eli Lilly and Co's Pretax Margin % has ranged from 11.54 to 43.08. According to the industry distribution chart, Eli Lilly and Co ranks #35 out of 955 companies in the Drug Manufacturers industry, placing it in the top 3.7%.
Is Eli Lilly and Co's Pretax Margin % too high?
Eli Lilly and Co's current Pretax Margin % of 44.70% is 97% above median its 10-year median of 22.67. Over the past 10 years, this metric has ranged from a low of 11.54 to a high of 43.08. The Drug Manufacturers industry median Pretax Margin % is 7.28. Eli Lilly and Co's value of 44.70% is 514% above this industry median. Based on the distribution chart, Eli Lilly and Co ranks #35 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Eli Lilly and Co has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eli Lilly and Co's Pretax Margin % compare to JNJ and ABBV?
According to the Drug Manufacturers industry distribution chart, Eli Lilly and Co ranks #35 out of 955 companies for Pretax Margin %. This places Eli Lilly and Co in the top 4% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 7.28. Eli Lilly and Co's value of 44.70% is 514% above this benchmark. Historically, Eli Lilly and Co's own Pretax Margin % has ranged from 11.54 to 43.08 over the past decade. While the company's 10-year median is 22.67 vs. the industry median of 7.28, Eli Lilly and Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Drug Manufacturers company?
The median Pretax Margin % among Drug Manufacturers companies is 7.28, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eli Lilly and Co's current Pretax Margin % of 44.70% is 514% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Eli Lilly and Co and its competitors. For the Drug Manufacturers industry, the median Pretax Margin % is 7.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eli Lilly and Co's current Pretax Margin % is 44.70%, which is 97% above median its own 10-year median of 22.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eli Lilly and Co stock overvalued right now?
Based on GuruFocus' analysis, Eli Lilly and Co (HAM:LLY) is currently considered Modestly Undervalued. The stock's GF Value™ is €1,212.75, compared to a current price of €1,039.40 — trading 14.3% below its estimated fair value. The current Pretax Margin % is 44.70%, which is 97% above median its 10-year median of 22.67 and 514% above the Drug Manufacturers industry median of 7.28. Eli Lilly and Co's overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Eli Lilly and Co (HAM:LLY), the current Pretax Margin % is 44.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eli Lilly and Co (HAM:LLY) Overvalued in 2026?
Based on GuruFocus' analysis, Eli Lilly and Co stock appears to be undervalued.
The current stock price of €1,039.40 is trading 14.3% below its estimated GF Value™ of €1,212.75.
GuruFocus considers Eli Lilly and Co to be Modestly Undervalued.
Key valuation signals for HAM:LLY:
Pretax Margin %: 44.70% (97% above median its 10-year median of 22.67)
GF Value™: €1,212.75 vs. price of €1,039.40 (14.3% below fair value)
Industry Position: 514% above the Drug Manufacturers median (#35 of 955)
No single metric tells the full story. See the HAM:LLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio and Jaypirca for cancer; Mounjaro, Zepbound, Foundayo, Jardiance, Trulicity, Humalog, and Humulin for cardiometabolic; and Taltz and Olumiant for immunology.
98GF Score
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