ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
22.6 USD
+0.22 (+0.98%)
22.6 USD
0 (0%)
Overall ELAN gets a fundamental rating of 4 out of 10. We evaluated ELAN against 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 has a correct valuation and a medium 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.
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
ELAN's Return On Assets of 0.27% is fine compared to the rest of the industry. ELAN outperforms 78.65% of its industry peers.
Looking at the Return On Equity, with a value of 0.53%, ELAN belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
The Return On Invested Capital of ELAN (1.38%) is better than 78.13% 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
ELAN has a better Profit Margin (0.78%) than 78.65% of its industry peers.
ELAN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.25%, ELAN is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
In the last couple of years the Operating Margin of ELAN has declined.
Looking at the Gross Margin, with a value of 54.96%, ELAN is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELAN 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.
Compared to 1 year ago, ELAN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
ELAN has a Altman-Z score (1.37) which is comparable to the rest of the industry.
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.
ELAN has a better Debt to FCF ratio (11.12) than 78.65% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that ELAN is somewhat dependend on debt financing.
ELAN has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: ELAN underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.16
WACC8.66%
2.3 Liquidity
ELAN has a Current Ratio of 2.40. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
ELAN's Current ratio of 2.40 is in line compared to the rest of the industry. ELAN outperforms 44.27% of 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.
With a Quick ratio value of 1.23, ELAN is not doing good in the industry: 72.40% of the companies in the same industry are doing better.
| 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.
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 small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
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 10.20% on average per year.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y5.08%
EPS Next 2Y7.64%
EPS Next 3Y9.24%
EPS Next 5Y10.2%
Revenue Next Year5.5%
Revenue Next 2Y5.61%
Revenue Next 3Y5.5%
Revenue Next 5Y4.74%
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
A Price/Earnings ratio of 23.54 indicates a rather expensive valuation of ELAN.
Based on the Price/Earnings ratio, ELAN is valued a bit cheaper than 79.17% of the companies in the same industry.
When comparing the Price/Earnings ratio of ELAN to the average of the S&P500 Index (26.92), we can say ELAN is valued inline with the index average.
The Price/Forward Earnings ratio is 21.43, which indicates a rather expensive current valuation of ELAN.
Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than 75.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ELAN to the average of the S&P500 Index (23.46), we can say ELAN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 21.43 |
4.2 Price Multiples
ELAN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ELAN is cheaper than 80.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.02 | ||
| EV/EBITDA | 16.19 |
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)4.63
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.6
+0.22 (+0.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners116.66%
Inst Owner Change5.99%
Ins Owners0.97%
Ins Owner Change4.61%
Market Cap11.23B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts84.76
Price Target26.05 (15.27%)
Short Float %4.45%
Short Ratio4.08
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)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)6.41%
PT rev (3m)36.57%
EPS NQ rev (1m)-2.19%
EPS NQ rev (3m)-15.37%
EPS NY rev (1m)3.77%
EPS NY rev (3m)5.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 21.43 | ||
| P/S | 2.45 | ||
| P/FCF | 31.02 | ||
| P/OCF | 17.85 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.19 |
EPS(TTM)0.96
EY4.25%
EPS(NY)1.05
Fwd EY4.67%
FCF(TTM)0.73
FCFY3.22%
OCF(TTM)1.27
OCFY5.6%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)4.63
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 | 1.37 |
F-Score6
WACC8.66%
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 Y5.08%
EPS Next 2Y7.64%
EPS Next 3Y9.24%
EPS Next 5Y10.2%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year5.5%
Revenue Next 2Y5.61%
Revenue Next 3Y5.5%
Revenue Next 5Y4.74%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year19.45%
EBIT Next 3Y12.64%
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 5.08% in the next year.