ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
NYSE:ELAN - New York Stock Exchange, Inc. - US28414H1032 - Common Stock - Currency: USD
Taking everything into account, ELAN scores 5 out of 10 in our fundamental rating. ELAN was compared to 198 industry peers in the Pharmaceuticals industry. ELAN has only an average score on both its financial health and profitability. ELAN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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.
ELAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ELAN's Return On Assets of 2.88% is amongst the best of the industry. ELAN outperforms 85.35% of its industry peers.
ELAN has a better Return On Equity (5.87%) than 85.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.42%, ELAN is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ELAN is significantly below the industry average of 42.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.87% | ||
| ROIC | 1.42% |
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 Profit Margin of 8.43%. This is amongst the best in the industry. ELAN outperforms 85.86% 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 5.40%, ELAN is in the better half of the industry, outperforming 79.80% of the companies in the same industry.
ELAN's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.89%, ELAN is doing good in the industry, outperforming 64.65% 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 | 5.4% | ||
| PM (TTM) | 8.43% | ||
| GM | 54.89% |
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.
ELAN has more shares outstanding than it did 1 year ago.
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 0.97. 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 0.97. This is in the better half of the industry: ELAN outperforms 62.12% of its industry peers.
The Debt to FCF ratio of ELAN is 13.20, which is on the high side as it means it would take ELAN, 13.20 years of fcf income to pay off all of its debts.
ELAN has a better Debt to FCF ratio (13.20) than 79.80% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that ELAN is somewhat dependend on debt financing.
ELAN has a worse Debt to Equity ratio (0.68) than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 13.2 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.16
WACC8.73%
2.3 Liquidity
ELAN has a Current Ratio of 2.71. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
ELAN's Current ratio of 2.71 is in line compared to the rest of the industry. ELAN outperforms 49.49% of its industry peers.
A Quick Ratio of 1.46 indicates that ELAN should not have too much problems paying its short term obligations.
ELAN's Quick ratio of 1.46 is on the low side compared to the rest of the industry. ELAN is outperformed by 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.51% over the past year.
ELAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.01% yearly.
ELAN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.42%.
ELAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.65% yearly.
EPS 1Y (TTM)20.51%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%8.82%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%-1%
3.2 Future
The Earnings Per Share is expected to grow by 9.43% on average over the next years. This is quite good.
ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.56% yearly.
EPS Next Y-6.47%
EPS Next 2Y3.84%
EPS Next 3Y6.48%
EPS Next 5Y9.43%
Revenue Next Year2.15%
Revenue Next 2Y3.51%
Revenue Next 3Y3.84%
Revenue Next 5Y3.56%
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
The Price/Earnings ratio is 13.36, which indicates a correct valuation of ELAN.
ELAN's Price/Earnings ratio is rather cheap when compared to the industry. ELAN is cheaper than 87.88% of the companies in the same industry.
ELAN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.80 indicates a correct valuation of ELAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELAN indicates a rather cheap valuation: ELAN is cheaper than 83.33% of the companies listed in the same industry.
ELAN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.36 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.73 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
ELAN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.84%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ELAN (5/23/2025, 12:03:48 PM)
12.56
-0.11 (-0.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.87%
Inst Owner Change2.17%
Ins Owners0.72%
Ins Owner Change20.68%
Market Cap6.24B
Analysts77
Price Target14.23 (13.3%)
Short Float %5.05%
Short Ratio4.47
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)1
Avg EPS beat(2)4.16%
Min EPS beat(2)-8.7%
Max EPS beat(2)17.01%
EPS beat(4)3
Avg EPS beat(4)9.62%
Min EPS beat(4)-8.7%
Max EPS beat(4)22.24%
EPS beat(8)6
Avg EPS beat(8)44.58%
EPS beat(12)10
Avg EPS beat(12)43.09%
EPS beat(16)13
Avg EPS beat(16)34.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)0.08%
Revenue beat(4)2
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-2.37%
Max Revenue beat(4)0.85%
Revenue beat(8)6
Avg Revenue beat(8)0.04%
Revenue beat(12)7
Avg Revenue beat(12)-0.18%
Revenue beat(16)9
Avg Revenue beat(16)-0.1%
PT rev (1m)-12.44%
PT rev (3m)-21.5%
EPS NQ rev (1m)-18.82%
EPS NQ rev (3m)-25.48%
EPS NY rev (1m)1.44%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.36 | ||
| Fwd PE | 12.8 | ||
| P/S | 1.41 | ||
| P/FCF | 18.73 | ||
| P/OCF | 11.66 | ||
| P/B | 0.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.38 |
EPS(TTM)0.94
EY7.48%
EPS(NY)0.98
Fwd EY7.81%
FCF(TTM)0.67
FCFY5.34%
OCF(TTM)1.08
OCFY8.58%
SpS8.92
BVpS12.8
TBVpS-3.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.87% | ||
| ROCE | 2.05% | ||
| ROIC | 1.42% | ||
| ROICexc | 1.48% | ||
| ROICexgc | 5.44% | ||
| OM | 5.4% | ||
| PM (TTM) | 8.43% | ||
| GM | 54.89% | ||
| FCFM | 7.52% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 13.2 | ||
| Debt/EBITDA | 4.86 | ||
| Cap/Depr | 30.75% | ||
| Cap/Sales | 4.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.71% | ||
| Profit Quality | 89.28% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 0.97 |
F-Score6
WACC8.73%
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)20.51%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%8.82%
EPS Next Y-6.47%
EPS Next 2Y3.84%
EPS Next 3Y6.48%
EPS Next 5Y9.43%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%-1%
Revenue Next Year2.15%
Revenue Next 2Y3.51%
Revenue Next 3Y3.84%
Revenue Next 5Y3.56%
EBIT growth 1Y0.42%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year12.87%
EBIT Next 3Y11.22%
EBIT Next 5Y10.97%
FCF growth 1Y92.49%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y44.99%
OCF growth 3Y3.85%
OCF growth 5Y19.28%