ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - NYSE:ELAN - US28414H1032 - Common Stock
21.64 USD
+0.02 (+0.09%)
21.7277 USD
+0.09 (+0.41%)
Overall ELAN gets a fundamental rating of 4 out of 10. We evaluated ELAN against 191 industry peers in the Pharmaceuticals industry. ELAN has only an average score on both its financial health and profitability. 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.
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
ELAN's Return On Assets of 3.16% is amongst the best of the industry. ELAN outperforms 85.86% of its industry peers.
With an excellent Return On Equity value of 6.41%, ELAN belongs to the best of the industry, outperforming 86.39% of the companies in the same industry.
The Return On Invested Capital of ELAN (1.17%) is better than 78.53% 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 15.45%.
| 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
The Profit Margin of ELAN (9.68%) is better than 84.82% of its industry peers.
ELAN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.66%, ELAN belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
ELAN's Operating Margin has declined in the last couple of years.
ELAN has a Gross Margin of 54.73%. This is in the better half of the industry: ELAN outperforms 65.44% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELAN is destroying value.
Compared to 1 year ago, ELAN has more shares outstanding
Compared to 5 years ago, ELAN has more shares outstanding
The debt/assets ratio for ELAN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
ELAN has a better Altman-Z score (1.30) than 60.73% 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.
The Debt to FCF ratio of ELAN (12.13) is better than 78.01% of its industry peers.
ELAN has a Debt/Equity ratio of 0.61. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
The Debt to Equity ratio of ELAN (0.61) is worse than 66.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 12.13 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.15
WACC8.08%
2.3 Liquidity
A Current Ratio of 2.60 indicates that ELAN has no problem at all paying its short term obligations.
The Current ratio of ELAN (2.60) 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 Quick ratio of 1.40. This is in the lower half of the industry: ELAN underperforms 62.83% 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.
Looking at the last year, ELAN shows a decrease in Revenue. The Revenue has decreased by -0.18% in the last 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
ELAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.06% yearly.
ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y-0.55%
EPS Next 2Y5.58%
EPS Next 3Y7.66%
EPS Next 5Y9.06%
Revenue Next Year3.99%
Revenue Next 2Y4.43%
Revenue Next 3Y4.4%
Revenue Next 5Y4.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.04, which indicates a rather expensive current valuation of ELAN.
Based on the Price/Earnings ratio, ELAN is valued cheaply inside the industry as 80.63% of the companies are valued more expensively.
ELAN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.57.
The Price/Forward Earnings ratio is 21.33, which indicates a rather expensive current valuation of ELAN.
Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than the industry average as 75.39% of the companies are valued more expensively.
ELAN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 21.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 81.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ELAN is valued a bit cheaper than 79.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.98 | ||
| EV/EBITDA | 16.51 |
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 3Y7.66%
5. Dividend
5.1 Amount
ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.64
+0.02 (+0.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners109.76%
Inst Owner Change-0.52%
Ins Owners0.95%
Ins Owner Change2.26%
Market Cap10.75B
Revenue(TTM)4.48B
Net Income(TTM)434.00M
Analysts80.95
Price Target19.58 (-9.52%)
Short Float %5.57%
Short Ratio3.59
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)2.67%
PT rev (3m)25.08%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-2.52%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)5.65%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 21.33 | ||
| P/S | 2.4 | ||
| P/FCF | 30.98 | ||
| P/OCF | 18.8 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.51 |
EPS(TTM)0.9
EY4.16%
EPS(NY)1.01
Fwd EY4.69%
FCF(TTM)0.7
FCFY3.23%
OCF(TTM)1.15
OCFY5.32%
SpS9.03
BVpS13.64
TBVpS-3.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number16.62
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
ROICexgc growth 3Y-9.66%
ROICexgc 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 | 1.3 |
F-Score5
WACC8.08%
ROIC/WACC0.15
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-0.55%
EPS Next 2Y5.58%
EPS Next 3Y7.66%
EPS Next 5Y9.06%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%4.81%
Revenue Next Year3.99%
Revenue Next 2Y4.43%
Revenue Next 3Y4.4%
Revenue Next 5Y4.17%
EBIT growth 1Y-30.33%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year16.94%
EBIT Next 3Y11.82%
EBIT Next 5Y9.69%
FCF growth 1Y498.85%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y384.75%
OCF growth 3Y3.85%
OCF growth 5Y19.28%