ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - NYSE:ELAN - US28414H1032 - Common Stock
21.2436 USD
-0.22 (-1.01%)
We assign a fundamental rating of 4 out of 10 to ELAN. ELAN was compared to 192 industry peers in the Pharmaceuticals industry. ELAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
ELAN has a Return On Assets of 0.27%. This is amongst the best in the industry. ELAN outperforms 80.21% of its industry peers.
ELAN has a Return On Equity of 0.53%. This is amongst the best in the industry. ELAN outperforms 81.77% of its industry peers.
ELAN's Return On Invested Capital of 1.38% is fine compared to the rest of the industry. ELAN outperforms 78.65% 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 13.48%.
| 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 80.21% of its industry peers.
In the last couple of years the Profit Margin of ELAN has grown nicely.
ELAN has a better Operating Margin (5.25%) than 79.69% of its industry peers.
ELAN's Operating Margin has declined in the last couple of years.
The Gross Margin of ELAN (54.96%) is better than 65.10% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELAN is destroying value.
ELAN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ELAN has more shares outstanding
The debt/assets ratio for ELAN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.32, 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 1.32, ELAN is in line with its industry, outperforming 59.90% of the companies in the same 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.
With a decent Debt to FCF ratio value of 11.12, ELAN is doing good in the industry, outperforming 77.08% 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.
The Debt to Equity ratio of ELAN (0.59) is worse than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.17
WACC8.13%
2.3 Liquidity
A Current Ratio of 2.40 indicates that ELAN has no problem at all paying its short term obligations.
ELAN's Current ratio of 2.40 is in line compared to the rest of the industry. ELAN outperforms 42.71% 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.
ELAN's Quick ratio of 1.23 is on the low side compared to the rest of the industry. ELAN is outperformed by 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.94% 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 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 9.53% on average per year.
ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.26% yearly.
EPS Next Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.53%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.26%
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.
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
With a Price/Earnings ratio of 22.13, ELAN is valued on the expensive side.
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 (25.47), we can say ELAN is valued inline with the index average.
A Price/Forward Earnings ratio of 20.75 indicates a rather expensive valuation of ELAN.
Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than 77.08% of the companies in the same industry.
ELAN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 20.75 |
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 80.73% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ELAN is valued a bit cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.15 | ||
| EV/EBITDA | 15.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ELAN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.51
PEG (5Y)N/A
EPS Next 2Y6.06%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ELAN (11/20/2025, 12:20:04 PM)
21.2436
-0.22 (-1.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners109.76%
Inst Owner Change5.93%
Ins Owners0.95%
Ins Owner Change2.33%
Market Cap10.55B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts81.9
Price Target22.35 (5.21%)
Short Float %4.49%
Short Ratio4.02
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)14.11%
PT rev (3m)34.41%
EPS NQ rev (1m)-12.34%
EPS NQ rev (3m)-10.08%
EPS NY rev (1m)1.82%
EPS NY rev (3m)7.57%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 20.75 | ||
| P/S | 2.3 | ||
| P/FCF | 29.15 | ||
| P/OCF | 16.78 | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.57 |
EPS(TTM)0.96
EY4.52%
EPS(NY)1.02
Fwd EY4.82%
FCF(TTM)0.73
FCFY3.43%
OCF(TTM)1.27
OCFY5.96%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)17.51
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 | 1.32 |
F-Score6
WACC8.13%
ROIC/WACC0.17
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 Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.53%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.26%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year16.94%
EBIT Next 3Y11.82%
EBIT Next 5Y10.06%
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 5 / 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 6 / 10.
What is the financial health of ELANCO ANIMAL HEALTH INC (ELAN) stock?
The financial health rating of ELANCO ANIMAL HEALTH INC (ELAN) is 4 / 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 1.26% in the next year.