ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - NYSE:ELAN - US28414H1032 - Common Stock
18.63 USD
-0.01 (-0.05%)
18.63 USD
0 (0%)
Taking everything into account, ELAN scores 4 out of 10 in our fundamental rating. ELAN was compared to 196 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
ELAN had positive earnings in the past year.
In the past year ELAN had a positive cash flow from operations.
In the past 5 years ELAN reported 4 times negative net income.
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 86.22% of its industry peers.
Looking at the Return On Equity, with a value of 6.41%, ELAN belongs to the top of the industry, outperforming 86.22% of the companies in the same industry.
The Return On Invested Capital of ELAN (1.17%) is better than 78.06% 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 15.28%.
| 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
With an excellent Profit Margin value of 9.68%, ELAN belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
ELAN's Profit Margin has improved in the last couple of years.
ELAN has a Operating Margin of 4.66%. This is in the better half of the industry: ELAN outperforms 79.59% of its industry peers.
In the last couple of years the Operating Margin of ELAN has declined.
ELAN has a better Gross Margin (54.73%) than 64.29% of its industry peers.
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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELAN 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
ELAN has an Altman-Z score of 1.18. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.18, ELAN is doing good in the industry, outperforming 61.22% of the companies in the same industry.
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.
ELAN's Debt to FCF ratio of 12.13 is fine compared to the rest of the industry. ELAN outperforms 78.57% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that ELAN is somewhat dependend on debt financing.
ELAN's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. ELAN is outperformed by 64.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 12.13 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.13
WACC8.97%
2.3 Liquidity
A Current Ratio of 2.60 indicates that ELAN has no problem at all paying its short term obligations.
With a Current ratio value of 2.60, ELAN perfoms like the industry average, outperforming 48.47% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that ELAN should not have too much problems paying its short term obligations.
ELAN's Quick ratio of 1.40 is on the low side compared to the rest of the industry. ELAN is outperformed by 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
ELAN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
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.
The Revenue has been growing slightly by 7.65% on average over the past years.
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
Based on estimates for the next years, ELAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.33% on average per year.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y-0.45%
EPS Next 2Y5.58%
EPS Next 3Y8.13%
EPS Next 5Y9.33%
Revenue Next Year3.86%
Revenue Next 2Y4.37%
Revenue Next 3Y4.34%
Revenue Next 5Y3.86%
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.
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 20.70, which indicates a rather expensive current valuation of ELAN.
Based on the Price/Earnings ratio, ELAN is valued cheaper than 81.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, ELAN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.37, the valuation of ELAN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 77.55% of the companies listed in the same industry.
ELAN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 18.37 |
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 82.14% of the companies listed in the same industry.
82.14% of the companies in the same industry are more expensive than ELAN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.67 | ||
| EV/EBITDA | 14.81 |
4.3 Compensation for Growth
ELAN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.58%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.63
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners102.42%
Inst Owner Change9.08%
Ins Owners0.95%
Ins Owner Change-0.64%
Market Cap9.26B
Analysts80.95
Price Target19.07 (2.36%)
Short Float %5.25%
Short Ratio3.5
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)14.72%
PT rev (3m)27.21%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-2.09%
EPS NY rev (1m)5.76%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 18.37 | ||
| P/S | 2.06 | ||
| P/FCF | 26.67 | ||
| P/OCF | 16.18 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.81 |
EPS(TTM)0.9
EY4.83%
EPS(NY)1.01
Fwd EY5.44%
FCF(TTM)0.7
FCFY3.75%
OCF(TTM)1.15
OCFY6.18%
SpS9.03
BVpS13.64
TBVpS-3.4
PEG (NY)N/A
PEG (5Y)N/A
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
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-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 | 1.18 |
F-Score5
WACC8.97%
ROIC/WACC0.13
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-0.45%
EPS Next 2Y5.58%
EPS Next 3Y8.13%
EPS Next 5Y9.33%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%4.81%
Revenue Next Year3.86%
Revenue Next 2Y4.37%
Revenue Next 3Y4.34%
Revenue Next 5Y3.86%
EBIT growth 1Y-30.33%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year12.88%
EBIT Next 3Y10.8%
EBIT Next 5Y10.26%
FCF growth 1Y498.85%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y384.75%
OCF growth 3Y3.85%
OCF growth 5Y19.28%