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 an average financial health and profitability rating. ELAN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ELAN was profitable.
In the past year ELAN had a positive cash flow from operations.
In the past 5 years ELAN reported 4 times negative net income.
Of the past 5 years ELAN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ELAN (2.68%) is better than 85.35% of its industry peers.
With an excellent Return On Equity value of 5.54%, ELAN belongs to the best of the industry, outperforming 85.35% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.54%, ELAN is in the better half of the industry, outperforming 76.77% of the companies in the same industry.
ELAN had an Average Return On Invested Capital over the past 3 years of 1.73%. This is significantly below the industry average of 41.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 5.54% | ||
| ROIC | 1.54% |
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 7.61%. This is amongst the best in the industry. ELAN outperforms 85.35% of its industry peers.
In the last couple of years the Profit Margin of ELAN has grown nicely.
The Operating Margin of ELAN (5.65%) is better than 78.79% of its industry peers.
In the last couple of years the Operating Margin of ELAN has declined.
Looking at the Gross Margin, with a value of 54.88%, ELAN is in the better half of the industry, outperforming 64.65% 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 | 5.65% | ||
| PM (TTM) | 7.61% | ||
| GM | 54.88% |
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
Compared to 1 year ago, ELAN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ELAN (0.81) is better than 60.10% of its industry peers.
The Debt to FCF ratio of ELAN is 11.37, which is on the high side as it means it would take ELAN, 11.37 years of fcf income to pay off all of its debts.
ELAN has a better Debt to FCF ratio (11.37) than 80.30% of its industry peers.
ELAN has a Debt/Equity ratio of 0.70. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
The Debt to Equity ratio of ELAN (0.70) is worse than 65.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 11.37 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.19
WACC8.29%
2.3 Liquidity
A Current Ratio of 2.44 indicates that ELAN has no problem at all paying its short term obligations.
ELAN has a Current ratio (2.44) which is in line with its industry peers.
A Quick Ratio of 1.25 indicates that ELAN should not have too much problems paying its short term obligations.
ELAN has a Quick ratio of 1.25. This is in the lower half of the industry: ELAN underperforms 70.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.25% over the past year.
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 0.50%.
The Revenue has been growing slightly by 7.65% on average over the past years.
EPS 1Y (TTM)2.25%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%75%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%-1.45%
3.2 Future
The Earnings Per Share is expected to grow by 9.43% on average over the next years. This is quite good.
Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 3.56% on average per year.
EPS Next Y-7.79%
EPS Next 2Y3.49%
EPS Next 3Y6.79%
EPS Next 5Y9.43%
Revenue Next Year1.31%
Revenue Next 2Y2.79%
Revenue Next 3Y3.25%
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.
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
ELAN is valuated reasonably with a Price/Earnings ratio of 10.71.
Compared to the rest of the industry, the Price/Earnings ratio of ELAN indicates a rather cheap valuation: ELAN is cheaper than 90.40% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ELAN to the average of the S&P500 Index (27.75), we can say ELAN is valued rather cheaply.
The Price/Forward Earnings ratio is 11.61, which indicates a very decent valuation of ELAN.
Based on the Price/Forward Earnings ratio, ELAN is valued cheaply inside the industry as 86.87% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.49. ELAN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
ELAN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ELAN is cheaper than 84.85% of the companies in the same industry.
ELAN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ELAN is cheaper than 88.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.73 | ||
| EV/EBITDA | 9.37 |
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 2Y3.49%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ELAN (5/2/2025, 11:13:07 AM)
9.745
+0.27 (+2.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners100.87%
Inst Owner Change-0.09%
Ins Owners0.72%
Ins Owner Change20.68%
Market Cap4.84B
Analysts77.14
Price Target14.48 (48.59%)
Short Float %4.45%
Short Ratio4.18
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)-0.39%
Min EPS beat(2)-8.7%
Max EPS beat(2)7.92%
EPS beat(4)3
Avg EPS beat(4)11.97%
Min EPS beat(4)-8.7%
Max EPS beat(4)26.41%
EPS beat(8)6
Avg EPS beat(8)49.08%
EPS beat(12)9
Avg EPS beat(12)41.67%
EPS beat(16)13
Avg EPS beat(16)37.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)-0.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.37%
Max Revenue beat(4)0.85%
Revenue beat(8)6
Avg Revenue beat(8)0.6%
Revenue beat(12)6
Avg Revenue beat(12)-0.32%
Revenue beat(16)9
Avg Revenue beat(16)0.21%
PT rev (1m)-14.05%
PT rev (3m)-22.28%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)3%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-9.92%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-3.56%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 11.61 | ||
| P/S | 1.09 | ||
| P/FCF | 12.73 | ||
| P/OCF | 8.94 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.37 |
EPS(TTM)0.91
EY9.34%
EPS(NY)0.84
Fwd EY8.61%
FCF(TTM)0.77
FCFY7.85%
OCF(TTM)1.09
OCFY11.18%
SpS8.94
BVpS12.28
TBVpS-4.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 5.54% | ||
| ROCE | 2.22% | ||
| ROIC | 1.54% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 6.35% | ||
| OM | 5.65% | ||
| PM (TTM) | 7.61% | ||
| GM | 54.88% | ||
| FCFM | 8.56% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 11.37 | ||
| Debt/EBITDA | 4.68 | ||
| Cap/Depr | 24.32% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.26% | ||
| Profit Quality | 112.43% | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.81 |
F-Score6
WACC8.29%
ROIC/WACC0.19
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)2.25%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%75%
EPS Next Y-7.79%
EPS Next 2Y3.49%
EPS Next 3Y6.79%
EPS Next 5Y9.43%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%-1.45%
Revenue Next Year1.31%
Revenue Next 2Y2.79%
Revenue Next 3Y3.25%
Revenue Next 5Y3.56%
EBIT growth 1Y-23.01%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year12.87%
EBIT Next 3Y11.22%
EBIT Next 5Y10.97%
FCF growth 1Y224.79%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y99.63%
OCF growth 3Y3.85%
OCF growth 5Y19.28%