ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - NYSE:ELAN - US28414H1032 - Common Stock
21.42 USD
+0.9 (+4.39%)
21.35 USD
-0.07 (-0.33%)
Taking everything into account, ELAN scores 4 out of 10 in our fundamental rating. ELAN was compared to 195 industry peers in the Pharmaceuticals industry. Both the profitability and the financial health of ELAN get a neutral evaluation. Nothing too spectacular is happening here. ELAN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ELAN was profitable.
ELAN had a positive operating cash flow in the past year.
In the past 5 years ELAN reported 4 times negative net income.
ELAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.16%, ELAN belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
The Return On Equity of ELAN (6.41%) is better than 86.67% of its industry peers.
ELAN has a Return On Invested Capital of 1.17%. This is in the better half of the industry: ELAN outperforms 77.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ELAN is significantly below the industry average of 15.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.41% | ||
| ROIC | 1.17% |
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
ELAN's Profit Margin of 9.68% is amongst the best of the industry. ELAN outperforms 85.13% of its industry peers.
In the last couple of years the Profit Margin of ELAN has grown nicely.
The Operating Margin of ELAN (4.66%) is better than 79.49% of its industry peers.
ELAN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.73%, ELAN is in the better half of the industry, outperforming 64.10% of the companies in the same industry.
ELAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.66% | ||
| PM (TTM) | 9.68% | ||
| GM | 54.73% |
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.
Compared to 1 year ago, ELAN has more shares outstanding
Compared to 5 years ago, ELAN has more shares outstanding
ELAN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.30, ELAN is in the better half of the industry, outperforming 60.51% of the companies in the same industry.
The Debt to FCF ratio of ELAN is 12.13, which is on the high side as it means it would take ELAN, 12.13 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 12.13, ELAN is doing good in the industry, outperforming 78.46% of the companies in the same industry.
ELAN has a Debt/Equity ratio of 0.61. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
ELAN's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. ELAN is outperformed by 65.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 12.13 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.15
WACC7.95%
2.3 Liquidity
A Current Ratio of 2.60 indicates that ELAN has no problem at all paying its short term obligations.
ELAN has a Current ratio (2.60) which is comparable to the rest of the industry.
A Quick Ratio of 1.40 indicates that ELAN should not have too much problems paying its short term obligations.
ELAN has a worse Quick ratio (1.40) than 62.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% 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.
ELAN shows a decrease in Revenue. In the last year, the revenue decreased by -0.18%.
ELAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.65% yearly.
EPS 1Y (TTM)0%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%4.81%
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 9.06% yearly.
ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y-0.55%
EPS Next 2Y5.58%
EPS Next 3Y7.66%
EPS Next 5Y9.06%
Revenue Next Year3.99%
Revenue Next 2Y4.43%
Revenue Next 3Y4.4%
Revenue Next 5Y4.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 23.80, which indicates a rather expensive current valuation of ELAN.
ELAN's Price/Earnings ratio is rather cheap when compared to the industry. ELAN is cheaper than 81.03% of the companies in the same industry.
When comparing the Price/Earnings ratio of ELAN to the average of the S&P500 Index (27.40), we can say ELAN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.12, the valuation of ELAN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than 74.36% 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 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 21.12 |
4.2 Price Multiples
81.54% of the companies in the same industry are more expensive than ELAN, based on the Enterprise Value to EBITDA ratio.
ELAN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.67 | ||
| EV/EBITDA | 16.39 |
4.3 Compensation for Growth
The decent profitability rating of ELAN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.58%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.42
+0.9 (+4.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners109.76%
Inst Owner Change-0.52%
Ins Owners0.95%
Ins Owner Change2.26%
Market Cap10.64B
Analysts80.95
Price Target19.58 (-8.59%)
Short Float %5.57%
Short Ratio3.59
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)23.75%
Min EPS beat(2)17.01%
Max EPS beat(2)30.48%
EPS beat(4)3
Avg EPS beat(4)11.68%
Min EPS beat(4)-8.7%
Max EPS beat(4)30.48%
EPS beat(8)6
Avg EPS beat(8)14.72%
EPS beat(12)10
Avg EPS beat(12)42.39%
EPS beat(16)13
Avg EPS beat(16)36.28%
Revenue beat(2)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.48%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-2.37%
Max Revenue beat(4)2.48%
Revenue beat(8)6
Avg Revenue beat(8)0.34%
Revenue beat(12)8
Avg Revenue beat(12)0.23%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)2.67%
PT rev (3m)25.08%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)5.65%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 21.12 | ||
| P/S | 2.37 | ||
| P/FCF | 30.67 | ||
| P/OCF | 18.6 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.39 |
EPS(TTM)0.9
EY4.2%
EPS(NY)1.01
Fwd EY4.74%
FCF(TTM)0.7
FCFY3.26%
OCF(TTM)1.15
OCFY5.38%
SpS9.03
BVpS13.64
TBVpS-3.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.41% | ||
| ROCE | 1.69% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.23% | ||
| ROICexgc | 4.32% | ||
| OM | 4.66% | ||
| PM (TTM) | 9.68% | ||
| GM | 54.73% | ||
| FCFM | 7.74% |
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
ROICexcg growth 3Y-9.66%
ROICexcg 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-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 12.13 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 33.89% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.52% | ||
| Profit Quality | 79.95% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.3 |
F-Score5
WACC7.95%
ROIC/WACC0.15
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)0%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%-13.33%
EPS Next Y-0.55%
EPS Next 2Y5.58%
EPS Next 3Y7.66%
EPS Next 5Y9.06%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%4.81%
Revenue Next Year3.99%
Revenue Next 2Y4.43%
Revenue Next 3Y4.4%
Revenue Next 5Y4.17%
EBIT growth 1Y-30.33%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year16.94%
EBIT Next 3Y11.82%
EBIT Next 5Y9.69%
FCF growth 1Y498.85%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y384.75%
OCF growth 3Y3.85%
OCF growth 5Y19.28%