ELANCO ANIMAL HEALTH INC (ELAN) Fundamental Analysis & Valuation
NYSE:ELAN • US28414H1032
Current stock price
23.68 USD
+0.55 (+2.38%)
At close:
23.6616 USD
-0.02 (-0.08%)
After Hours:
This ELAN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ELAN Profitability Analysis
1.1 Basic Checks
- ELAN had positive earnings in the past year.
- In the past year ELAN had a positive cash flow from operations.
- In the past 5 years ELAN reported 4 times negative net income.
- In the past 5 years ELAN always reported a positive cash flow from operatings.
1.2 Ratios
- ELAN has a Return On Assets of -1.74%. This is in the better half of the industry: ELAN outperforms 75.92% of its industry peers.
- Looking at the Return On Equity, with a value of -3.54%, ELAN is in the better half of the industry, outperforming 78.53% of the companies in the same industry.
- ELAN has a better Return On Invested Capital (1.48%) than 79.06% of its industry peers.
- ELAN had an Average Return On Invested Capital over the past 3 years of 1.58%. This is significantly below the industry average of 13.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.74% | ||
| ROE | -3.54% | ||
| ROIC | 1.48% |
ROA(3y)-2.54%
ROA(5y)-2.21%
ROE(3y)-5.93%
ROE(5y)-5.05%
ROIC(3y)1.58%
ROIC(5y)1.62%
1.3 Margins
- ELAN has a better Operating Margin (5.34%) than 80.10% of its industry peers.
- In the last couple of years the Operating Margin of ELAN has declined.
- ELAN's Gross Margin of 54.99% is fine compared to the rest of the industry. ELAN outperforms 66.49% of its industry peers.
- In the last couple of years the Gross Margin of ELAN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.34% | ||
| PM (TTM) | N/A | ||
| GM | 54.99% |
OM growth 3Y-15.01%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.97%
GM growth 5Y2.32%
2. ELAN Health Analysis
2.1 Basic Checks
- ELAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ELAN has more shares outstanding
- ELAN has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ELAN has been reduced compared to a year ago.
2.2 Solvency
- ELAN has an Altman-Z score of 1.40. 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 1.40. This is comparable to the rest of the industry: ELAN outperforms 53.93% of its industry peers.
- The Debt to FCF ratio of ELAN is 14.14, which is on the high side as it means it would take ELAN, 14.14 years of fcf income to pay off all of its debts.
- ELAN has a better Debt to FCF ratio (14.14) than 77.49% of its industry peers.
- A Debt/Equity ratio of 0.60 indicates that ELAN is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.60, ELAN is not doing good in the industry: 69.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.14 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.17
WACC8.69%
2.3 Liquidity
- ELAN has a Current Ratio of 2.17. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
- ELAN's Current ratio of 2.17 is on the low side compared to the rest of the industry. ELAN is outperformed by 60.21% of its industry peers.
- A Quick Ratio of 1.08 indicates that ELAN should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.08, ELAN is not doing good in the industry: 80.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.08 |
3. ELAN Growth Analysis
3.1 Past
- ELAN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.40%.
- Measured over the past years, ELAN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.11% on average per year.
- The Revenue has been growing slightly by 6.22% in the past year.
- Measured over the past years, ELAN shows a small growth in Revenue. The Revenue has been growing by 7.59% on average per year.
EPS 1Y (TTM)4.4%
EPS 3Y-5.06%
EPS 5Y15.11%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y2.25%
Revenue growth 5Y7.59%
Sales Q2Q%12.16%
3.2 Future
- ELAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.15% yearly.
- ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.86% yearly.
EPS Next Y10.75%
EPS Next 2Y12.11%
EPS Next 3Y12.56%
EPS Next 5Y10.15%
Revenue Next Year7.16%
Revenue Next 2Y6.23%
Revenue Next 3Y5.77%
Revenue Next 5Y4.86%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
4. ELAN Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.93 indicates a rather expensive valuation of ELAN.
- Based on the Price/Earnings ratio, ELAN is valued cheaper than 80.63% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.89. ELAN is around the same levels.
- The Price/Forward Earnings ratio is 22.51, which indicates a rather expensive current valuation of ELAN.
- 78.01% of the companies in the same industry are more expensive than ELAN, based on the Price/Forward Earnings ratio.
- ELAN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.93 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 81.68% of the companies are valued more expensively.
- ELAN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 78.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.64 | ||
| EV/EBITDA | 16.41 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as ELAN's earnings are expected to grow with 12.56% in the coming years.
PEG (NY)2.32
PEG (5Y)1.65
EPS Next 2Y12.11%
EPS Next 3Y12.56%
5. ELAN Dividend Analysis
5.1 Amount
- No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ELAN Fundamentals: All Metrics, Ratios and Statistics
23.68
+0.55 (+2.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-24 2026-02-24/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners110.27%
Inst Owner Change0.08%
Ins Owners1.08%
Ins Owner Change12.54%
Market Cap11.83B
Revenue(TTM)4.71B
Net Income(TTM)-232.00M
Analysts85.45
Price Target30.18 (27.45%)
Short Float %5.2%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.98%
Min EPS beat(2)15.04%
Max EPS beat(2)42.93%
EPS beat(4)4
Avg EPS beat(4)26.36%
Min EPS beat(4)15.04%
Max EPS beat(4)42.93%
EPS beat(8)7
Avg EPS beat(8)19.17%
EPS beat(12)10
Avg EPS beat(12)41.51%
EPS beat(16)13
Avg EPS beat(16)37.85%
Revenue beat(2)2
Avg Revenue beat(2)2.33%
Min Revenue beat(2)2.06%
Max Revenue beat(2)2.6%
Revenue beat(4)4
Avg Revenue beat(4)1.81%
Min Revenue beat(4)0.08%
Max Revenue beat(4)2.6%
Revenue beat(8)6
Avg Revenue beat(8)0.67%
Revenue beat(12)10
Avg Revenue beat(12)1%
Revenue beat(16)10
Avg Revenue beat(16)0.22%
PT rev (1m)10.94%
PT rev (3m)15.84%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.93 | ||
| Fwd PE | 22.51 | ||
| P/S | 2.51 | ||
| P/FCF | 41.64 | ||
| P/OCF | 21.12 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.41 |
EPS(TTM)0.95
EY4.01%
EPS(NY)1.05
Fwd EY4.44%
FCF(TTM)0.57
FCFY2.4%
OCF(TTM)1.12
OCFY4.74%
SpS9.44
BVpS13.11
TBVpS-3.28
PEG (NY)2.32
PEG (5Y)1.65
Graham Number16.7401 (-29.31%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.74% | ||
| ROE | -3.54% | ||
| ROCE | 2.14% | ||
| ROIC | 1.48% | ||
| ROICexc | 1.56% | ||
| ROICexgc | 5.76% | ||
| OM | 5.34% | ||
| PM (TTM) | N/A | ||
| GM | 54.99% | ||
| FCFM | 6.02% |
ROA(3y)-2.54%
ROA(5y)-2.21%
ROE(3y)-5.93%
ROE(5y)-5.05%
ROIC(3y)1.58%
ROIC(5y)1.62%
ROICexc(3y)1.64%
ROICexc(5y)1.68%
ROICexgc(3y)6.4%
ROICexgc(5y)7.61%
ROCE(3y)2.28%
ROCE(5y)2.34%
ROICexgc growth 3Y-17.32%
ROICexgc growth 5YN/A
ROICexc growth 3Y-7.69%
ROICexc growth 5YN/A
OM growth 3Y-15.01%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.97%
GM growth 5Y2.32%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.14 | ||
| Debt/EBITDA | 4.23 | ||
| Cap/Depr | 40.59% | ||
| Cap/Sales | 5.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.4 |
F-Score5
WACC8.69%
ROIC/WACC0.17
Cap/Depr(3y)29.03%
Cap/Depr(5y)28.32%
Cap/Sales(3y)4.32%
Cap/Sales(5y)4.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.4%
EPS 3Y-5.06%
EPS 5Y15.11%
EPS Q2Q%-7.14%
EPS Next Y10.75%
EPS Next 2Y12.11%
EPS Next 3Y12.56%
EPS Next 5Y10.15%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y2.25%
Revenue growth 5Y7.59%
Sales Q2Q%12.16%
Revenue Next Year7.16%
Revenue Next 2Y6.23%
Revenue Next 3Y5.77%
Revenue Next 5Y4.86%
EBIT growth 1Y0.4%
EBIT growth 3Y-13.1%
EBIT growth 5YN/A
EBIT Next Year39.52%
EBIT Next 3Y18.84%
EBIT Next 5Y13.31%
FCF growth 1Y-25.26%
FCF growth 3Y1.95%
FCF growth 5YN/A
OCF growth 1Y3.51%
OCF growth 3Y7.4%
OCF growth 5YN/A
ELANCO ANIMAL HEALTH INC / ELAN Fundamental Analysis FAQ
What is the ChartMill fundamental rating of ELANCO ANIMAL HEALTH INC (ELAN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ELAN.
What is the valuation status of ELANCO ANIMAL HEALTH INC (ELAN) stock?
ChartMill assigns a valuation rating of 4 / 10 to ELANCO ANIMAL HEALTH INC (ELAN). This can be considered as Fairly Valued.
How profitable is ELANCO ANIMAL HEALTH INC (ELAN) stock?
ELANCO ANIMAL HEALTH INC (ELAN) has a profitability rating of 5 / 10.
What is the valuation of ELANCO ANIMAL HEALTH INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ELANCO ANIMAL HEALTH INC (ELAN) is 24.93 and the Price/Book (PB) ratio is 1.81.
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 10.75% in the next year.