ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
21.27 USD
-0.03 (-0.14%)
21.27 USD
0 (0%)
Taking everything into account, ELAN scores 4 out of 10 in our fundamental rating. ELAN was compared to 191 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of ELAN while its profitability can be described as average. ELAN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ELAN was profitable.
ELAN had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 0.27%, ELAN is doing good in the industry, outperforming 78.53% of the companies in the same industry.
ELAN has a Return On Equity of 0.53%. This is amongst the best in the industry. ELAN outperforms 80.10% of its industry peers.
ELAN's Return On Invested Capital of 1.38% is fine compared to the rest of the industry. ELAN outperforms 78.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ELAN is significantly below the industry average of 12.85%.
| 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
The Profit Margin of ELAN (0.78%) is better than 78.53% of its industry peers.
In the last couple of years the Profit Margin of ELAN has grown nicely.
With a decent Operating Margin value of 5.25%, ELAN is doing good in the industry, outperforming 79.06% of the companies in the same industry.
In the last couple of years the Operating Margin of ELAN has declined.
The Gross Margin of ELAN (54.96%) is better than 67.02% of its industry peers.
ELAN'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%
2. Health
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.
The number of shares outstanding for ELAN has been increased compared to 1 year ago.
The number of shares outstanding for ELAN has been increased compared to 5 years ago.
The debt/assets ratio for ELAN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ELAN (1.31) is comparable to the rest of the industry.
The Debt to FCF ratio of ELAN is 11.12, which is on the high side as it means it would take ELAN, 11.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 11.12, ELAN is doing good in the industry, outperforming 78.53% 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.
ELAN has a worse Debt to Equity ratio (0.59) than 65.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.16
WACC8.46%
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 (2.40) which is in line with its industry peers.
ELAN has a Quick Ratio of 1.23. This is a normal value and indicates that ELAN is financially healthy and should not expect problems in meeting its short term obligations.
ELAN has a Quick ratio of 1.23. This is in the lower half of the industry: ELAN underperforms 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
ELAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.94%, which is quite good.
ELAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.01% yearly.
The Revenue has been growing slightly by 3.08% in the past year.
ELAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.65% yearly.
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
ELAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.20% yearly.
Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y4.8%
EPS Next 2Y7.34%
EPS Next 3Y9.15%
EPS Next 5Y10.2%
Revenue Next Year5.43%
Revenue Next 2Y5.37%
Revenue Next 3Y5.26%
Revenue Next 5Y4.74%
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.
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.16, the valuation of ELAN can be described as rather expensive.
Based on the Price/Earnings ratio, ELAN is valued a bit cheaper than 79.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of ELAN to the average of the S&P500 Index (26.76), we can say ELAN is valued inline with the index average.
ELAN is valuated rather expensively with a Price/Forward Earnings ratio of 20.29.
Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than 75.39% of the companies in the same industry.
ELAN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELAN indicates a rather cheap valuation: ELAN is cheaper than 80.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaper than 81.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.19 | ||
| EV/EBITDA | 15.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ELAN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.61
PEG (5Y)N/A
EPS Next 2Y7.34%
EPS Next 3Y9.15%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.27
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners116.66%
Inst Owner Change5.97%
Ins Owners0.97%
Ins Owner Change4.18%
Market Cap10.57B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts84.76
Price Target25.16 (18.29%)
Short Float %4.57%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)36.7%
Min EPS beat(2)30.48%
Max EPS beat(2)42.93%
EPS beat(4)3
Avg EPS beat(4)20.43%
Min EPS beat(4)-8.7%
Max EPS beat(4)42.93%
EPS beat(8)6
Avg EPS beat(8)14.04%
EPS beat(12)10
Avg EPS beat(12)44.02%
EPS beat(16)13
Avg EPS beat(16)38.17%
Revenue beat(2)2
Avg Revenue beat(2)2.27%
Min Revenue beat(2)2.06%
Max Revenue beat(2)2.48%
Revenue beat(4)3
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)2.48%
Revenue beat(8)6
Avg Revenue beat(8)0.5%
Revenue beat(12)9
Avg Revenue beat(12)0.62%
Revenue beat(16)9
Avg Revenue beat(16)-0.02%
PT rev (1m)12.59%
PT rev (3m)31.91%
EPS NQ rev (1m)-4.41%
EPS NQ rev (3m)-14.44%
EPS NY rev (1m)3.49%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 20.29 | ||
| P/S | 2.3 | ||
| P/FCF | 29.19 | ||
| P/OCF | 16.8 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.46 |
EPS(TTM)0.96
EY4.51%
EPS(NY)1.05
Fwd EY4.93%
FCF(TTM)0.73
FCFY3.43%
OCF(TTM)1.27
OCFY5.95%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)4.61
PEG (5Y)N/A
Graham Number17.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 0.53% | ||
| ROCE | 1.99% | ||
| ROIC | 1.38% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 5.17% | ||
| OM | 5.25% | ||
| PM (TTM) | 0.78% | ||
| GM | 54.96% | ||
| FCFM | 7.88% |
ROA(3y)-2.13%
ROA(5y)-2.51%
ROE(3y)-5.1%
ROE(5y)-5.7%
ROIC(3y)1.73%
ROIC(5y)N/A
ROICexc(3y)1.78%
ROICexc(5y)N/A
ROICexgc(3y)7.88%
ROICexgc(5y)N/A
ROCE(3y)2.5%
ROCE(5y)N/A
ROICexgc growth 3Y-9.66%
ROICexgc growth 5Y-10.16%
ROICexc growth 3Y2.68%
ROICexc growth 5Y-13.27%
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%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Debt/EBITDA | 4.35 | ||
| Cap/Depr | 39.85% | ||
| Cap/Sales | 5.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.05% | ||
| Profit Quality | 1005.56% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.31 |
F-Score6
WACC8.46%
ROIC/WACC0.16
Cap/Depr(3y)24.5%
Cap/Depr(5y)32.23%
Cap/Sales(3y)3.76%
Cap/Sales(5y)4.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.94%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%46.15%
EPS Next Y4.8%
EPS Next 2Y7.34%
EPS Next 3Y9.15%
EPS Next 5Y10.2%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year5.43%
Revenue Next 2Y5.37%
Revenue Next 3Y5.26%
Revenue Next 5Y4.74%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year19.56%
EBIT Next 3Y12.91%
EBIT Next 5Y10.33%
FCF growth 1Y656.92%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y395.28%
OCF growth 3Y3.85%
OCF growth 5Y19.28%
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.
What is the valuation status for ELAN stock?
ChartMill assigns a valuation rating of 4 / 10 to ELANCO ANIMAL HEALTH INC (ELAN). This can be considered as Fairly Valued.
What is the profitability of ELAN stock?
ELANCO ANIMAL HEALTH INC (ELAN) has a profitability rating of 5 / 10.
What is the financial health of ELANCO ANIMAL HEALTH INC (ELAN) stock?
The financial health rating of ELANCO ANIMAL HEALTH INC (ELAN) is 3 / 10.
What is the earnings growth outlook for ELANCO ANIMAL HEALTH INC?
The Earnings per Share (EPS) of ELANCO ANIMAL HEALTH INC (ELAN) is expected to grow by 4.8% in the next year.