ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
NYSE:ELAN - US28414H1032 - Common Stock
18.535 USD
+0.05 (+0.24%)
Taking everything into account, ELAN scores 4 out of 10 in our fundamental rating. ELAN was compared to 193 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 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
ELAN's Return On Assets of 3.16% is amongst the best of the industry. ELAN outperforms 86.01% of its industry peers.
ELAN has a Return On Equity of 6.41%. This is amongst the best in the industry. ELAN outperforms 86.01% of its industry peers.
ELAN's Return On Invested Capital of 1.17% is fine compared to the rest of the industry. ELAN outperforms 77.72% of its industry peers.
ELAN had an Average Return On Invested Capital over the past 3 years of 1.73%. This is significantly below the industry average of 15.38%.
| 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
Looking at the Profit Margin, with a value of 9.68%, ELAN belongs to the top of the industry, outperforming 84.46% of the companies in the same industry.
In the last couple of years the Profit Margin of ELAN has grown nicely.
ELAN has a Operating Margin of 4.66%. This is in the better half of the industry: ELAN outperforms 79.27% of its industry peers.
ELAN's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.73%, ELAN is doing good in the industry, outperforming 64.77% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELAN is destroying value.
ELAN has more shares outstanding than it did 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
ELAN has an Altman-Z score of 1.17. 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 1.17. This is comparable to the rest of the industry: ELAN outperforms 59.07% of its industry peers.
ELAN has a debt to FCF ratio of 12.13. This is a negative value and a sign of low solvency as ELAN would need 12.13 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 12.13, ELAN is doing good in the industry, outperforming 77.72% 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 has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: ELAN underperforms 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 12.13 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.13
WACC9.07%
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 61.66% 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.
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 decreased by -0.18% 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)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
Based on estimates for the next years, ELAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.33% on average per year.
ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y-0.45%
EPS Next 2Y5.58%
EPS Next 3Y8.13%
EPS Next 5Y9.33%
Revenue Next Year3.92%
Revenue Next 2Y4.44%
Revenue Next 3Y4.38%
Revenue Next 5Y3.86%
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 20.59, ELAN is valued on the expensive side.
ELAN's Price/Earnings ratio is rather cheap when compared to the industry. ELAN is cheaper than 81.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.14, ELAN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.27, the valuation of ELAN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 77.20% of the companies listed in the same industry.
ELAN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 82.90% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaper than 81.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.54 | ||
| EV/EBITDA | 14.73 |
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 3Y8.13%
5. Dividend
5.1 Amount
ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ELAN (8/28/2025, 12:18:06 PM)
18.535
+0.05 (+0.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners102.42%
Inst Owner Change9.08%
Ins Owners0.95%
Ins Owner Change9.6%
Market Cap9.21B
Analysts80.95
Price Target19.07 (2.89%)
Short Float %4.88%
Short Ratio4.37
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)21.82%
PT rev (3m)34.05%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)0.4%
EPS NY rev (1m)5.76%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)2.01%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 18.27 | ||
| P/S | 2.05 | ||
| P/FCF | 26.54 | ||
| P/OCF | 16.1 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.73 |
EPS(TTM)0.9
EY4.86%
EPS(NY)1.01
Fwd EY5.47%
FCF(TTM)0.7
FCFY3.77%
OCF(TTM)1.15
OCFY6.21%
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 | 1.17 |
F-Score5
WACC9.07%
ROIC/WACC0.13
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-0.45%
EPS Next 2Y5.58%
EPS Next 3Y8.13%
EPS Next 5Y9.33%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%4.81%
Revenue Next Year3.92%
Revenue Next 2Y4.44%
Revenue Next 3Y4.38%
Revenue Next 5Y3.86%
EBIT growth 1Y-30.33%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year12.88%
EBIT Next 3Y10.8%
EBIT Next 5Y10.26%
FCF growth 1Y498.85%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y384.75%
OCF growth 3Y3.85%
OCF growth 5Y19.28%