ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
22.6 USD
+0.22 (+0.98%)
22.6 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ELAN. ELAN was compared to 191 industry peers in the Pharmaceuticals industry. ELAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. ELAN has a decent growth rate and is not valued too expensively.
1. Profitability
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.
ELAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ELAN (0.27%) is better than 78.65% of its industry peers.
With an excellent Return On Equity value of 0.53%, ELAN belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.38%, ELAN is doing good in the industry, outperforming 78.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ELAN is significantly below the industry average of 12.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 0.53% | ||
| ROIC | 1.38% |
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 a decent Profit Margin value of 0.78%, ELAN is doing good in the industry, outperforming 78.65% of the companies in the same industry.
In the last couple of years the Profit Margin of ELAN has grown nicely.
The Operating Margin of ELAN (5.25%) is better than 79.17% of its industry peers.
ELAN's Operating Margin has declined in the last couple of years.
ELAN has a better Gross Margin (54.96%) than 66.15% of its industry peers.
ELAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | 0.78% | ||
| GM | 54.96% |
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 1.37. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.37, ELAN is in line with its industry, outperforming 54.69% of the companies in the same industry.
The Debt to FCF ratio of ELAN is 11.12, which is on the high side as it means it would take ELAN, 11.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 11.12, ELAN is doing good in the industry, outperforming 78.65% of the companies in the same industry.
ELAN has a Debt/Equity ratio of 0.59. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
ELAN has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: ELAN underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.16
WACC8.66%
2.3 Liquidity
ELAN has a Current Ratio of 2.40. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
ELAN has a Current ratio (2.40) which is comparable to the rest of the industry.
ELAN has a Quick Ratio of 1.23. 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 1.23 is on the low side compared to the rest of the industry. ELAN is outperformed by 72.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.94% over the past year.
The Earnings Per Share has been decreasing by -3.01% on average over the past years.
The Revenue has been growing slightly by 3.08% in the past year.
The Revenue has been growing slightly by 7.65% on average over the past years.
EPS 1Y (TTM)12.94%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%46.15%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
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 10.20% yearly.
Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 4.74% on average per year.
EPS Next Y5.08%
EPS Next 2Y7.64%
EPS Next 3Y9.24%
EPS Next 5Y10.2%
Revenue Next Year5.5%
Revenue Next 2Y5.61%
Revenue Next 3Y5.5%
Revenue Next 5Y4.74%
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
A Price/Earnings ratio of 23.54 indicates a rather expensive valuation of ELAN.
Based on the Price/Earnings ratio, ELAN is valued a bit cheaper than 79.17% of the companies in the same industry.
ELAN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.92.
The Price/Forward Earnings ratio is 21.43, which indicates a rather expensive current valuation of ELAN.
75.52% of the companies in the same industry are more expensive than ELAN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, ELAN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 21.43 |
4.2 Price Multiples
ELAN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ELAN is cheaper than 80.73% of the companies in the same industry.
81.25% 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 | 31.02 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.63
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.6
+0.22 (+0.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners116.66%
Inst Owner Change5.99%
Ins Owners0.97%
Ins Owner Change4.61%
Market Cap11.23B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts84.76
Price Target26.05 (15.27%)
Short Float %4.45%
Short Ratio4.08
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)36.7%
Min EPS beat(2)30.48%
Max EPS beat(2)42.93%
EPS beat(4)3
Avg EPS beat(4)20.43%
Min EPS beat(4)-8.7%
Max EPS beat(4)42.93%
EPS beat(8)6
Avg EPS beat(8)14.04%
EPS beat(12)10
Avg EPS beat(12)44.02%
EPS beat(16)13
Avg EPS beat(16)38.17%
Revenue beat(2)2
Avg Revenue beat(2)2.27%
Min Revenue beat(2)2.06%
Max Revenue beat(2)2.48%
Revenue beat(4)3
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)2.48%
Revenue beat(8)6
Avg Revenue beat(8)0.5%
Revenue beat(12)9
Avg Revenue beat(12)0.62%
Revenue beat(16)9
Avg Revenue beat(16)-0.02%
PT rev (1m)6.41%
PT rev (3m)36.57%
EPS NQ rev (1m)-2.19%
EPS NQ rev (3m)-15.37%
EPS NY rev (1m)3.77%
EPS NY rev (3m)5.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.54 | ||
| Fwd PE | 21.43 | ||
| P/S | 2.45 | ||
| P/FCF | 31.02 | ||
| P/OCF | 17.85 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.19 |
EPS(TTM)0.96
EY4.25%
EPS(NY)1.05
Fwd EY4.67%
FCF(TTM)0.73
FCFY3.22%
OCF(TTM)1.27
OCFY5.6%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)4.63
PEG (5Y)N/A
Graham Number17.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 0.53% | ||
| ROCE | 1.99% | ||
| ROIC | 1.38% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 5.17% | ||
| OM | 5.25% | ||
| PM (TTM) | 0.78% | ||
| GM | 54.96% | ||
| FCFM | 7.88% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Debt/EBITDA | 4.35 | ||
| Cap/Depr | 39.85% | ||
| Cap/Sales | 5.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.05% | ||
| Profit Quality | 1005.56% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.37 |
F-Score6
WACC8.66%
ROIC/WACC0.16
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)12.94%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%46.15%
EPS Next Y5.08%
EPS Next 2Y7.64%
EPS Next 3Y9.24%
EPS Next 5Y10.2%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year5.5%
Revenue Next 2Y5.61%
Revenue Next 3Y5.5%
Revenue Next 5Y4.74%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year19.45%
EBIT Next 3Y12.64%
EBIT Next 5Y10.33%
FCF growth 1Y656.92%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y395.28%
OCF growth 3Y3.85%
OCF growth 5Y19.28%
ELANCO ANIMAL HEALTH INC / ELAN FAQ
What is the ChartMill fundamental rating of ELANCO ANIMAL HEALTH INC (ELAN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ELAN.
What is the valuation status for ELAN stock?
ChartMill assigns a valuation rating of 4 / 10 to ELANCO ANIMAL HEALTH INC (ELAN). This can be considered as Fairly Valued.
What is the profitability of ELAN stock?
ELANCO ANIMAL HEALTH INC (ELAN) has a profitability rating of 5 / 10.
What is the financial health of ELANCO ANIMAL HEALTH INC (ELAN) stock?
The financial health rating of ELANCO ANIMAL HEALTH INC (ELAN) is 3 / 10.
What is the earnings growth outlook for ELANCO ANIMAL HEALTH INC?
The Earnings per Share (EPS) of ELANCO ANIMAL HEALTH INC (ELAN) is expected to grow by 5.08% in the next year.