ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
24.645 USD
+0.46 (+1.92%)
ELAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 190 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 correct valuation and a medium growth rate.
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.
- ELAN had negative earnings in 4 of the past 5 years.
- Of the past 5 years ELAN 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ELAN (0.27%) is better than 78.42% of its industry peers.
- ELAN has a Return On Equity of 0.53%. This is in the better half of the industry: ELAN outperforms 80.00% of its industry peers.
- ELAN has a Return On Invested Capital of 1.38%. This is in the better half of the industry: ELAN outperforms 77.89% 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 12.84%.
| 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
- ELAN's Profit Margin of 0.78% is fine compared to the rest of the industry. ELAN outperforms 78.42% of its industry peers.
- ELAN's Profit Margin has improved in the last couple of years.
- ELAN has a Operating Margin of 5.25%. This is in the better half of the industry: ELAN outperforms 78.95% of its industry peers.
- ELAN's Operating Margin has declined in the last couple of years.
- The Gross Margin of ELAN (54.96%) is better than 66.84% 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.
- ELAN has more shares outstanding than it did 1 year ago.
- ELAN has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ELAN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.44, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.44, ELAN is in line with its industry, outperforming 54.74% 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.
- Looking at the Debt to FCF ratio, with a value of 11.12, ELAN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- A Debt/Equity ratio of 0.59 indicates that ELAN is somewhat dependend on debt financing.
- The Debt to Equity ratio of ELAN (0.59) is worse than 67.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.16
WACC8.68%
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 in line with its industry peers.
- A Quick Ratio of 1.23 indicates that ELAN should not have too much problems paying its short term obligations.
- ELAN has a Quick ratio of 1.23. This is in the lower half of the industry: ELAN underperforms 73.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- ELAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.94%, which is quite good.
- ELAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.01% yearly.
- ELAN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
- ELAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.65% yearly.
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
- The Earnings Per Share is expected to grow by 10.39% 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 4.96% yearly.
EPS Next Y5.08%
EPS Next 2Y7.64%
EPS Next 3Y9.24%
EPS Next 5Y10.39%
Revenue Next Year5.5%
Revenue Next 2Y5.61%
Revenue Next 3Y5.5%
Revenue Next 5Y4.96%
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
- ELAN is valuated quite expensively with a Price/Earnings ratio of 25.67.
- ELAN's Price/Earnings ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 78.42% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.54. ELAN is around the same levels.
- The Price/Forward Earnings ratio is 23.37, which indicates a rather expensive current valuation of ELAN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 75.79% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ELAN to the average of the S&P500 Index (24.31), we can say ELAN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 23.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 80.53% of the companies are valued more expensively.
- 80.00% 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 | 33.83 | ||
| EV/EBITDA | 17.05 |
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)5.05
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
- ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ELAN (1/16/2026, 3:55:03 PM)
24.645
+0.46 (+1.92%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners116.54%
Inst Owner Change0%
Ins Owners0.99%
Ins Owner Change4.72%
Market Cap12.25B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts84.55
Price Target26.05 (5.7%)
Short Float %4.23%
Short Ratio3.7
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)3.53%
PT rev (3m)33.01%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-15.37%
EPS NY rev (1m)0.27%
EPS NY rev (3m)5.66%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 23.37 | ||
| P/S | 2.67 | ||
| P/FCF | 33.83 | ||
| P/OCF | 19.47 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.05 |
EPS(TTM)0.96
EY3.9%
EPS(NY)1.05
Fwd EY4.28%
FCF(TTM)0.73
FCFY2.96%
OCF(TTM)1.27
OCFY5.14%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)5.05
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 | 1.44 |
F-Score6
WACC8.68%
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 5Y10.39%
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 5Y4.96%
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 5Y9.88%
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.
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 5 / 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 5.08% in the next year.