ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
24.52 USD
+0.12 (+0.49%)
Taking everything into account, ELAN scores 4 out of 10 in our fundamental rating. ELAN was compared to 190 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of ELAN while its profitability can be described as average. ELAN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ELAN was profitable.
- In the past year ELAN had a positive cash flow from operations.
- ELAN had negative earnings in 4 of the past 5 years.
- ELAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of ELAN (0.27%) is better than 78.42% of its industry peers.
- The Return On Equity of ELAN (0.53%) is better than 80.00% of its industry peers.
- ELAN has a better Return On Invested Capital (1.38%) than 77.89% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ELAN is significantly below the industry average of 12.83%.
| 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
- With a decent Profit Margin value of 0.78%, ELAN is doing good in the industry, outperforming 78.42% of the companies in the same industry.
- ELAN's Profit Margin has improved in the last couple of years.
- ELAN's Operating Margin of 5.25% is fine compared to the rest of the industry. ELAN outperforms 78.95% of its industry peers.
- In the last couple of years the Operating Margin of ELAN has declined.
- ELAN has a better Gross Margin (54.96%) than 66.84% of its industry peers.
- In the last couple of years the Gross Margin of ELAN has remained more or less at the same level.
| 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELAN is destroying value.
- ELAN has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ELAN has more shares outstanding
- The debt/assets ratio for ELAN has been reduced compared to a year ago.
2.2 Solvency
- ELAN has an Altman-Z score of 1.45. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
- ELAN has a Altman-Z score of 1.45. This is comparable to the rest of the industry: ELAN outperforms 54.74% of its industry peers.
- ELAN has a debt to FCF ratio of 11.12. This is a negative value and a sign of low solvency as ELAN would need 11.12 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 11.12, ELAN is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- ELAN has a Debt/Equity ratio of 0.59. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.59, ELAN is not doing good in the industry: 66.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.16
WACC8.68%
2.3 Liquidity
- A Current Ratio of 2.40 indicates that ELAN has no problem at all paying its short term obligations.
- ELAN has a Current ratio of 2.40. This is comparable to the rest of the industry: ELAN outperforms 44.21% of its industry peers.
- A Quick Ratio of 1.23 indicates that ELAN should not have too much problems paying its short term obligations.
- The Quick ratio of ELAN (1.23) is worse than 72.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.94% over the past year.
- Measured over the past years, ELAN shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.01% on average per year.
- The Revenue has been growing slightly by 3.08% in the past year.
- Measured over the past years, ELAN shows a small growth in Revenue. The Revenue has been growing by 7.65% on average per year.
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, ELAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.39% on average per year.
- Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 4.96% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.54, the valuation of ELAN can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 78.42% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ELAN to the average of the S&P500 Index (27.21), we can say ELAN is valued inline with the index average.
- ELAN is valuated rather expensively with a Price/Forward Earnings ratio of 23.25.
- Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than 75.79% of the companies in the same industry.
- ELAN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 23.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 80.53% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ELAN is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.65 | ||
| EV/EBITDA | 17.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.03
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
- No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ELANCO ANIMAL HEALTH INC / ELAN FAQ
What is the ChartMill fundamental rating of ELANCO ANIMAL HEALTH INC (ELAN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ELAN.
Can you provide the valuation status for ELANCO ANIMAL HEALTH INC?
ChartMill assigns a valuation rating of 4 / 10 to ELANCO ANIMAL HEALTH INC (ELAN). This can be considered as Fairly Valued.
Can you provide the profitability details for ELANCO ANIMAL HEALTH INC?
ELANCO ANIMAL HEALTH INC (ELAN) has a profitability rating of 5 / 10.
Can you provide the financial health for ELAN stock?
The financial health rating of ELANCO ANIMAL HEALTH INC (ELAN) is 3 / 10.
Can you provide the expected EPS growth for ELAN stock?
The Earnings per Share (EPS) of ELANCO ANIMAL HEALTH INC (ELAN) is expected to grow by 5.08% in the next year.