ELANCO ANIMAL HEALTH INC (ELAN)

US28414H1032 - Common Stock

16.28  +0.11 (+0.68%)

After market: 16.28 0 (0%)

Fundamental Rating

4

ELAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 203 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 decent growth rate and is not valued too expensively.



5

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 (-8.57%) is better than 73.63% of its industry peers.
ELAN's Return On Equity of -19.78% is fine compared to the rest of the industry. ELAN outperforms 75.62% of its industry peers.
ELAN has a better Return On Invested Capital (1.96%) than 80.10% 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 16.07%.
The last Return On Invested Capital (1.96%) for ELAN is above the 3 year average (1.93%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -8.57%
ROE -19.78%
ROIC 1.96%
ROA(3y)-4%
ROA(5y)-2.9%
ROE(3y)-9.09%
ROE(5y)-6.56%
ROIC(3y)1.93%
ROIC(5y)N/A

1.3 Margins

The Operating Margin of ELAN (7.38%) is better than 81.09% of its industry peers.
In the last couple of years the Operating Margin of ELAN has declined.
ELAN has a better Gross Margin (56.28%) than 64.68% of its industry peers.
In the last couple of years the Gross Margin of ELAN has grown nicely.
Industry RankSector Rank
OM 7.38%
PM (TTM) N/A
GM 56.28%
OM growth 3YN/A
OM growth 5Y-6.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.7%
GM growth 5Y2.94%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELAN is destroying value.
The number of shares outstanding for ELAN has been increased compared to 1 year ago.
The number of shares outstanding for ELAN has been increased compared to 5 years ago.
Compared to 1 year ago, ELAN has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.93, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ELAN (0.93) is comparable to the rest of the industry.
The Debt to FCF ratio of ELAN is 49.35, which is on the high side as it means it would take ELAN, 49.35 years of fcf income to pay off all of its debts.
ELAN's Debt to FCF ratio of 49.35 is fine compared to the rest of the industry. ELAN outperforms 78.11% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that ELAN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, ELAN is doing worse than 72.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 49.35
Altman-Z 0.93
ROIC/WACC0.27
WACC7.35%

2.3 Liquidity

A Current Ratio of 2.75 indicates that ELAN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.75, ELAN is in line with its industry, outperforming 42.79% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that ELAN should not have too much problems paying its short term obligations.
ELAN's Quick ratio of 1.35 is on the low side compared to the rest of the industry. ELAN is outperformed by 70.15% of its industry peers.
Industry RankSector Rank
Current Ratio 2.75
Quick Ratio 1.35

4

3. Growth

3.1 Past

ELAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.82%.
The Earnings Per Share has been growing by 23.72% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.23% in the past year.
The Revenue has been growing slightly by 7.57% on average over the past years.
EPS 1Y (TTM)-19.82%
EPS 3Y23.72%
EPS 5YN/A
EPS growth Q2Q-57.89%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.53%
Revenue growth 5Y7.57%
Revenue growth Q2Q5.5%

3.2 Future

ELAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.92% yearly.
Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y5.54%
EPS Next 2Y10.53%
EPS Next 3Y10.32%
EPS Next 5Y9.92%
Revenue Next Year2.62%
Revenue Next 2Y3.29%
Revenue Next 3Y3.37%
Revenue Next 5Y3.96%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.29 indicates a rather expensive valuation of ELAN.
84.58% of the companies in the same industry are more expensive than ELAN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.42, ELAN is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.33 indicates a rather expensive valuation of ELAN.
Based on the Price/Forward Earnings ratio, ELAN is valued cheaply inside the industry as 81.59% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ELAN to the average of the S&P500 Index (22.74), we can say ELAN is valued slightly cheaper.
Industry RankSector Rank
PE 18.29
Fwd PE 17.33

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 82.59% of the companies are valued more expensively.
78.61% of the companies in the same industry are more expensive than ELAN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 68.59
EV/EBITDA 13.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ELAN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.3
PEG (5Y)N/A
EPS Next 2Y10.53%
EPS Next 3Y10.32%

0

5. Dividend

5.1 Amount

No dividends for ELAN!.
Industry RankSector Rank
Dividend Yield N/A

ELANCO ANIMAL HEALTH INC

NYSE:ELAN (3/28/2024, 4:10:06 PM)

After market: 16.28 0 (0%)

16.28

+0.11 (+0.68%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.03B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.29
Fwd PE 17.33
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.3
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.57%
ROE -19.78%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.38%
PM (TTM) N/A
GM 56.28%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.75
Quick Ratio 1.35
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-19.82%
EPS 3Y23.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y