ELANCO ANIMAL HEALTH INC (ELAN) Fundamental Analysis & Valuation
NYSE:ELAN • US28414H1032
Current stock price
22.94 USD
+0.26 (+1.15%)
At close:
23.11 USD
+0.17 (+0.74%)
After Hours:
This ELAN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ELAN Profitability Analysis
1.1 Basic Checks
- ELAN had positive earnings in the past year.
- ELAN had a positive operating cash flow in the past year.
- In the past 5 years ELAN reported 4 times negative net income.
- Each year in the past 5 years ELAN had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of -1.74%, ELAN is doing good in the industry, outperforming 75.52% of the companies in the same industry.
- With a decent Return On Equity value of -3.54%, ELAN is doing good in the industry, outperforming 77.60% of the companies in the same industry.
- ELAN has a better Return On Invested Capital (1.48%) than 78.13% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ELAN is significantly below the industry average of 13.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.74% | ||
| ROE | -3.54% | ||
| ROIC | 1.48% |
ROA(3y)-2.54%
ROA(5y)-2.21%
ROE(3y)-5.93%
ROE(5y)-5.05%
ROIC(3y)1.58%
ROIC(5y)1.62%
1.3 Margins
- With a decent Operating Margin value of 5.34%, ELAN is doing good in the industry, outperforming 79.17% of the companies in the same industry.
- In the last couple of years the Operating Margin of ELAN has declined.
- Looking at the Gross Margin, with a value of 54.99%, ELAN is in the better half of the industry, outperforming 67.71% of the companies in the same industry.
- ELAN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.34% | ||
| PM (TTM) | N/A | ||
| GM | 54.99% |
OM growth 3Y-15.01%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.97%
GM growth 5Y2.32%
2. ELAN Health Analysis
2.1 Basic Checks
- ELAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ELAN has more shares outstanding
- ELAN has more shares outstanding than it did 5 years ago.
- ELAN has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.36, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ELAN (1.36) is comparable to the rest of the industry.
- The Debt to FCF ratio of ELAN is 14.14, which is on the high side as it means it would take ELAN, 14.14 years of fcf income to pay off all of its debts.
- ELAN has a Debt to FCF ratio of 14.14. This is in the better half of the industry: ELAN outperforms 77.60% of its industry peers.
- ELAN has a Debt/Equity ratio of 0.60. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
- ELAN has a worse Debt to Equity ratio (0.60) than 65.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.14 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.17
WACC8.84%
2.3 Liquidity
- ELAN has a Current Ratio of 2.17. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of ELAN (2.17) is comparable to the rest of the industry.
- ELAN has a Quick Ratio of 1.08. 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 1.08 is on the low side compared to the rest of the industry. ELAN is outperformed by 76.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.08 |
3. ELAN Growth Analysis
3.1 Past
- ELAN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.40%.
- Measured over the past years, ELAN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.11% on average per year.
- Looking at the last year, ELAN shows a small growth in Revenue. The Revenue has grown by 6.22% in the last year.
- Measured over the past years, ELAN shows a small growth in Revenue. The Revenue has been growing by 7.59% on average per year.
EPS 1Y (TTM)4.4%
EPS 3Y-5.06%
EPS 5Y15.11%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y2.25%
Revenue growth 5Y7.59%
Sales Q2Q%12.16%
3.2 Future
- The Earnings Per Share is expected to grow by 10.15% on average over the next years. This is quite good.
- ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.86% yearly.
EPS Next Y10.73%
EPS Next 2Y11.57%
EPS Next 3Y12.11%
EPS Next 5Y10.15%
Revenue Next Year6.93%
Revenue Next 2Y6.06%
Revenue Next 3Y5.61%
Revenue Next 5Y4.86%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
4. ELAN Valuation Analysis
4.1 Price/Earnings Ratio
- ELAN is valuated rather expensively with a Price/Earnings ratio of 24.15.
- Based on the Price/Earnings ratio, ELAN is valued a bit cheaper than 79.69% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.71. ELAN is around the same levels.
- The Price/Forward Earnings ratio is 21.81, which indicates a rather expensive current valuation of ELAN.
- ELAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 78.13% of the companies in the same industry.
- ELAN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 21.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaper than 81.77% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ELAN is valued a bit cheaper than the industry average as 77.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.16 | ||
| EV/EBITDA | 15.96 |
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.
- ELAN's earnings are expected to grow with 12.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)1.6
EPS Next 2Y11.57%
EPS Next 3Y12.11%
5. ELAN Dividend Analysis
5.1 Amount
- ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ELAN Fundamentals: All Metrics, Ratios and Statistics
22.94
+0.26 (+1.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-24 2026-02-24/bmo
Earnings (Next)05-05 2026-05-05/bmo
Inst Owners109.64%
Inst Owner Change-10.47%
Ins Owners0.98%
Ins Owner Change14.28%
Market Cap11.41B
Revenue(TTM)4.71B
Net Income(TTM)-232.00M
Analysts85.45
Price Target27.2 (18.57%)
Short Float %3.75%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)28.98%
Min EPS beat(2)15.04%
Max EPS beat(2)42.93%
EPS beat(4)4
Avg EPS beat(4)26.36%
Min EPS beat(4)15.04%
Max EPS beat(4)42.93%
EPS beat(8)7
Avg EPS beat(8)19.17%
EPS beat(12)10
Avg EPS beat(12)41.51%
EPS beat(16)13
Avg EPS beat(16)37.85%
Revenue beat(2)2
Avg Revenue beat(2)2.33%
Min Revenue beat(2)2.06%
Max Revenue beat(2)2.6%
Revenue beat(4)4
Avg Revenue beat(4)1.81%
Min Revenue beat(4)0.08%
Max Revenue beat(4)2.6%
Revenue beat(8)6
Avg Revenue beat(8)0.67%
Revenue beat(12)10
Avg Revenue beat(12)1%
Revenue beat(16)10
Avg Revenue beat(16)0.22%
PT rev (1m)0.78%
PT rev (3m)8.11%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.78%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 21.81 | ||
| P/S | 2.42 | ||
| P/FCF | 40.16 | ||
| P/OCF | 20.37 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.96 |
EPS(TTM)0.95
EY4.14%
EPS(NY)1.05
Fwd EY4.59%
FCF(TTM)0.57
FCFY2.49%
OCF(TTM)1.13
OCFY4.91%
SpS9.48
BVpS13.17
TBVpS-3.3
PEG (NY)2.25
PEG (5Y)1.6
Graham Number16.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.74% | ||
| ROE | -3.54% | ||
| ROCE | 2.14% | ||
| ROIC | 1.48% | ||
| ROICexc | 1.56% | ||
| ROICexgc | 5.76% | ||
| OM | 5.34% | ||
| PM (TTM) | N/A | ||
| GM | 54.99% | ||
| FCFM | 6.02% |
ROA(3y)-2.54%
ROA(5y)-2.21%
ROE(3y)-5.93%
ROE(5y)-5.05%
ROIC(3y)1.58%
ROIC(5y)1.62%
ROICexc(3y)1.64%
ROICexc(5y)1.68%
ROICexgc(3y)6.4%
ROICexgc(5y)7.61%
ROCE(3y)2.28%
ROCE(5y)2.34%
ROICexgc growth 3Y-17.32%
ROICexgc growth 5YN/A
ROICexc growth 3Y-7.69%
ROICexc growth 5YN/A
OM growth 3Y-15.01%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.97%
GM growth 5Y2.32%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.14 | ||
| Debt/EBITDA | 4.23 | ||
| Cap/Depr | 40.59% | ||
| Cap/Sales | 5.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.36 |
F-Score5
WACC8.84%
ROIC/WACC0.17
Cap/Depr(3y)29.03%
Cap/Depr(5y)28.32%
Cap/Sales(3y)4.32%
Cap/Sales(5y)4.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.4%
EPS 3Y-5.06%
EPS 5Y15.11%
EPS Q2Q%-7.14%
EPS Next Y10.73%
EPS Next 2Y11.57%
EPS Next 3Y12.11%
EPS Next 5Y10.15%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y2.25%
Revenue growth 5Y7.59%
Sales Q2Q%12.16%
Revenue Next Year6.93%
Revenue Next 2Y6.06%
Revenue Next 3Y5.61%
Revenue Next 5Y4.86%
EBIT growth 1Y0.4%
EBIT growth 3Y-13.1%
EBIT growth 5YN/A
EBIT Next Year40.58%
EBIT Next 3Y18.81%
EBIT Next 5Y13.31%
FCF growth 1Y-25.26%
FCF growth 3Y1.95%
FCF growth 5YN/A
OCF growth 1Y3.51%
OCF growth 3Y7.4%
OCF growth 5YN/A
ELANCO ANIMAL HEALTH INC / ELAN Fundamental Analysis FAQ
What is the ChartMill fundamental rating of ELANCO ANIMAL HEALTH INC (ELAN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ELAN.
Can you provide the valuation status for ELANCO ANIMAL HEALTH INC?
ChartMill assigns a valuation rating of 4 / 10 to ELANCO ANIMAL HEALTH INC (ELAN). This can be considered as Fairly Valued.
Can you provide the profitability details for ELANCO ANIMAL HEALTH INC?
ELANCO ANIMAL HEALTH INC (ELAN) has a profitability rating of 4 / 10.
Can you provide the financial health for ELAN stock?
The financial health rating of ELANCO ANIMAL HEALTH INC (ELAN) is 3 / 10.
Can you provide the expected EPS growth for ELAN stock?
The Earnings per Share (EPS) of ELANCO ANIMAL HEALTH INC (ELAN) is expected to grow by 10.73% in the next year.