ELANCO ANIMAL HEALTH INC (5EA.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:5EA • US28414H1032

20.995 EUR

-0.15 (-0.73%)

Last: Jan 23, 2026, 07:00 PM

Fundamental Rating

Taking everything into account, 5EA scores 3 out of 10 in our fundamental rating. 5EA was compared to 55 industry peers in the Pharmaceuticals industry. 5EA has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, 5EA is valued expensive at the moment.

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1. Profitability

1.1 Basic Checks

In the past year 5EA was profitable.
5EA had a positive operating cash flow in the past year.
5EA had negative earnings in 4 of the past 5 years.
5EA had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

5EA's Return On Assets of 0.27% is on the low side compared to the rest of the industry. 5EA is outperformed by 65.45% of its industry peers.
5EA has a Return On Equity of 0.53%. This is in the lower half of the industry: 5EA underperforms 63.64% of its industry peers.
With a Return On Invested Capital value of 1.38%, 5EA is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for 5EA is significantly below the industry average of 14.00%.

		Industry Rank	Sector Rank
ROA	0.27%
ROE	0.53%
ROIC	1.38%

ROA(3y)-2.13%

ROA(5y)-2.51%

ROE(3y)-5.1%

ROE(5y)-5.7%

ROIC(3y)1.73%

ROIC(5y)N/A

1.3 Margins

5EA has a worse Profit Margin (0.78%) than 61.82% of its industry peers.
5EA's Profit Margin has improved in the last couple of years.
5EA has a Operating Margin of 5.25%. This is in the lower half of the industry: 5EA underperforms 63.64% of its industry peers.
5EA's Operating Margin has declined in the last couple of years.
The Gross Margin of 5EA (54.96%) is worse than 72.73% of its industry peers.
5EA's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	5.25%
PM (TTM)	0.78%
GM	54.96%

OM growth 3Y-3.95%

OM growth 5Y-14.04%

PM growth 3YN/A

PM growth 5Y28.06%

GM growth 3Y-0.22%

GM growth 5Y1.04%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 5EA is destroying value.
5EA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 5EA has been increased compared to 5 years ago.
The debt/assets ratio for 5EA has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.48, we must say that 5EA is in the distress zone and has some risk of bankruptcy.
5EA's Altman-Z score of 1.48 is on the low side compared to the rest of the industry. 5EA is outperformed by 69.09% of its industry peers.
5EA has a debt to FCF ratio of 11.12. This is a negative value and a sign of low solvency as 5EA would need 11.12 years to pay back of all of its debts.
5EA's Debt to FCF ratio of 11.12 is on the low side compared to the rest of the industry. 5EA is outperformed by 63.64% of its industry peers.
5EA has a Debt/Equity ratio of 0.59. This is a neutral value indicating 5EA is somewhat dependend on debt financing.
5EA has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.59
Debt/FCF	11.12
Altman-Z	1.48

ROIC/WACC0.16

WACC8.65%

2.3 Liquidity

A Current Ratio of 2.40 indicates that 5EA has no problem at all paying its short term obligations.
The Current ratio of 5EA (2.40) is better than 80.00% of its industry peers.
A Quick Ratio of 1.23 indicates that 5EA should not have too much problems paying its short term obligations.
5EA's Quick ratio of 1.23 is fine compared to the rest of the industry. 5EA outperforms 72.73% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.4
Quick Ratio	1.23

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 12.94% over the past year.
5EA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.01% yearly.
5EA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
The Revenue has been growing slightly by 7.65% on average over the past years.

EPS 1Y (TTM)12.94%

EPS 3Y-4.66%

EPS 5Y-3.01%

EPS Q2Q%46.15%

Revenue 1Y (TTM)3.08%

Revenue growth 3Y-2.33%

Revenue growth 5Y7.65%

Sales Q2Q%10.39%

3.2 Future

Based on estimates for the next years, 5EA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.39% on average per year.
5EA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.96% yearly.

EPS Next Y5.08%

EPS Next 2Y7.64%

EPS Next 3Y9.24%

EPS Next 5Y10.39%

Revenue Next Year5.5%

Revenue Next 2Y5.59%

Revenue Next 3Y5.48%

Revenue Next 5Y4.96%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.24, the valuation of 5EA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 5EA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.39, 5EA is valued at the same level.
With a Price/Forward Earnings ratio of 23.83, 5EA is valued on the expensive side.
5EA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, 5EA is valued at the same level.

		Industry Rank	Sector Rank
PE	26.24
Fwd PE	23.83

4.2 Price Multiples

5EA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 5EA is more expensive than 61.82% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 5EA.

		Industry Rank	Sector Rank
P/FCF	34.49
EV/EBITDA	17.57

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 5EA does not grow enough to justify the current Price/Earnings ratio.