ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
NYSE:ELAN - New York Stock Exchange, Inc. - US28414H1032 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ELAN. ELAN was compared to 194 industry peers in the Pharmaceuticals industry. ELAN has an average financial health and profitability rating. 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
Looking at the Return On Assets, with a value of 2.88%, ELAN belongs to the top of the industry, outperforming 85.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.87%, ELAN belongs to the top of the industry, outperforming 85.57% of the companies in the same industry.
The Return On Invested Capital of ELAN (1.42%) is better than 77.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ELAN is significantly below the industry average of 14.87%.
| 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 better Profit Margin (8.43%) than 85.57% of its industry peers.
In the last couple of years the Profit Margin of ELAN has grown nicely.
ELAN's Operating Margin of 5.40% is amongst the best of the industry. ELAN outperforms 80.41% of its industry peers.
In the last couple of years the Operating Margin of ELAN has declined.
With a decent Gross Margin value of 54.89%, ELAN is doing good in the industry, outperforming 65.46% 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
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.
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 1.07. 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 (1.07) which is in line with 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's Debt to FCF ratio of 13.20 is amongst the best of the industry. ELAN outperforms 80.41% of its industry peers.
ELAN has a Debt/Equity ratio of 0.68. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
The Debt to Equity ratio of ELAN (0.68) is worse than 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 13.2 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.16
WACC8.83%
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.
The Current ratio of ELAN (2.71) is comparable to the rest of the industry.
ELAN has a Quick Ratio of 1.46. This is a normal value and indicates that ELAN is financially healthy and should not expect problems in meeting its short term obligations.
ELAN has a worse Quick ratio (1.46) than 63.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
ELAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.51%, which is quite impressive.
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 1.42%.
The Revenue has been growing slightly by 7.65% on average over the past years.
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
Based on estimates for the next years, ELAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.05% on average per year.
Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y-5.87%
EPS Next 2Y3.34%
EPS Next 3Y6.92%
EPS Next 5Y10.05%
Revenue Next Year2.61%
Revenue Next 2Y3.68%
Revenue Next 3Y3.87%
Revenue Next 5Y3.67%
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
The Price/Earnings ratio is 15.85, which indicates a correct valuation of ELAN.
Based on the Price/Earnings ratio, ELAN is valued cheaply inside the industry as 86.60% of the companies are valued more expensively.
ELAN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
ELAN is valuated correctly with a Price/Forward Earnings ratio of 15.33.
78.35% of the companies in the same industry are more expensive than ELAN, based on the Price/Forward Earnings ratio.
ELAN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 15.33 |
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 82.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaply inside the industry as 82.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 12.62 |
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 2Y3.34%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.9
-0.14 (-0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners101.36%
Inst Owner Change-0.02%
Ins Owners0.95%
Ins Owner Change20.6%
Market Cap7.40B
Analysts79.05
Price Target14.99 (0.6%)
Short Float %4.94%
Short Ratio3.95
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)0%
PT rev (3m)-7.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.55%
EPS NY rev (1m)0.64%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 15.33 | ||
| P/S | 1.67 | ||
| P/FCF | 22.22 | ||
| P/OCF | 13.83 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.62 |
EPS(TTM)0.94
EY6.31%
EPS(NY)0.97
Fwd EY6.52%
FCF(TTM)0.67
FCFY4.5%
OCF(TTM)1.08
OCFY7.23%
SpS8.91
BVpS12.79
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 | 1.07 |
F-Score6
WACC8.83%
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-5.87%
EPS Next 2Y3.34%
EPS Next 3Y6.92%
EPS Next 5Y10.05%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%-1%
Revenue Next Year2.61%
Revenue Next 2Y3.68%
Revenue Next 3Y3.87%
Revenue Next 5Y3.67%
EBIT growth 1Y0.42%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year13.13%
EBIT Next 3Y10.52%
EBIT Next 5Y10.85%
FCF growth 1Y92.49%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y44.99%
OCF growth 3Y3.85%
OCF growth 5Y19.28%