Eli Lilly and CoHAM:LLY +3.96%98 ROA % is 25.99% as of Mar. 2026, which is 113% above its 10-year median of 12.21. 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 1,006 Drug Manufacturers companies, Eli Lilly and Co ranks better than 97.51% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Eli Lilly and Co's annualizedNet Income for the quarter that ended in Mar. 2026 was €25,590 Mil.
Eli Lilly and Co's average Total Assets over the quarter that ended in Mar. 2026 was €98,446 Mil. Therefore, Eli Lilly and Co's annualized ROA % for the quarter that ended in Mar. 2026 was 25.99%.
The historical rank and industry rank for Eli Lilly and Co's ROA % or its related term are showing as below:
HAM:LLY'
s ROA % Range Over the Past 10 Years
Min: -0.49 Med: 12.21 Max: 23.65
Current: 23.65
During the past 13 years, Eli Lilly and Co's highest ROA % was 23.65%. The lowest was -0.49%. And the median was 12.21%.
HAM:LLY's ROA % is ranked better than 97.51% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 2.685
vs HAM:LLY: 23.65
Eli Lilly and Co (HAM:LLY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Eli Lilly and Co ROA % Related Terms
Eli Lilly and Co ROA % Historical Data
* Premium members only.
The historical data trend for Eli Lilly and Co's ROA % 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.
For the Drug Manufacturers - General subindustry, Eli Lilly and Co's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's ROA % distribution charts can be found below:
* The bar in red indicates where Eli Lilly and Co's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Eli Lilly and Co (HAM:LLY) has a ROA % of 25.99% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Eli Lilly and Co and its competitors. This is 113% above median its historical median of 12.21. According to the industry distribution chart, Eli Lilly and Co ranks #25 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 2.5%.
Is Eli Lilly and Co's ROA % too high?
Eli Lilly and Co's current ROA % of 25.99% is 113% above median its 10-year median of 12.21. The Drug Manufacturers industry median ROA % is 2.69. Eli Lilly and Co's value of 25.99% is 868% above this industry median. Based on the distribution chart, Eli Lilly and Co ranks #25 out of 1006 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 ROA % compare to JNJ and ABBV?
According to the Drug Manufacturers industry distribution chart, Eli Lilly and Co ranks #25 out of 1006 companies for ROA %. This places Eli Lilly and Co in the top 3% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Eli Lilly and Co's value of 25.99% is 868% above this benchmark. While the company's 10-year median is 12.21 vs. the industry median of 2.69, 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 ROA % for a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.69, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eli Lilly and Co's current ROA % of 25.99% is 868% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Eli Lilly and Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eli Lilly and Co's current ROA % is 25.99%, which is 113% above median its own 10-year median of 12.21. 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 ROA % is 25.99%, which is 113% above median its 10-year median of 12.21 and 868% above the Drug Manufacturers industry median of 2.69. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Eli Lilly and Co (HAM:LLY), the current ROA % is 25.99% 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:
ROA %: 25.99% (113% above median its 10-year median of 12.21)
GF Value™: €1,212.75 vs. price of €1,039.40 (14.3% below fair value)
Industry Position: 868% above the Drug Manufacturers median (#25 of 1006)
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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