ELANCO ANIMAL HEALTH INC (ELAN) Fundamental Analysis & Valuation
NYSE:ELAN • US28414H1032
Current stock price
23.68 USD
+0.55 (+2.38%)
At close:
23.6616 USD
-0.02 (-0.08%)
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
- 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.
- ELAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ELAN's Return On Assets of -1.74% is fine compared to the rest of the industry. ELAN outperforms 75.92% of its industry peers.
- ELAN's Return On Equity of -3.54% is fine compared to the rest of the industry. ELAN outperforms 78.53% of its industry peers.
- ELAN's Return On Invested Capital of 1.48% is fine compared to the rest of the industry. ELAN outperforms 79.06% of its industry peers.
- ELAN had an Average Return On Invested Capital over the past 3 years of 1.58%. This is significantly below the industry average of 13.11%.
| 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
- ELAN has a better Operating Margin (5.34%) than 80.10% of its industry peers.
- In the last couple of years the Operating Margin of ELAN has declined.
- ELAN's Gross Margin of 54.99% is fine compared to the rest of the industry. ELAN outperforms 66.49% of its industry peers.
- In the last couple of years the Gross Margin of ELAN has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ELAN is destroying value.
- ELAN has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ELAN has more shares outstanding
- Compared to 1 year ago, ELAN has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.37, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ELAN (1.37) 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 better Debt to FCF ratio (14.14) than 77.49% of its industry peers.
- A Debt/Equity ratio of 0.60 indicates that ELAN is somewhat dependend on debt financing.
- The Debt to Equity ratio of ELAN (0.60) is worse than 69.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.14 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.17
WACC8.69%
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.
- With a Current ratio value of 2.17, ELAN is not doing good in the industry: 60.21% of the companies in the same industry are doing better.
- A Quick Ratio of 1.08 indicates that ELAN should not have too much problems paying 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 80.10% 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.
- The Revenue has been growing slightly by 6.22% in the past year.
- ELAN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.59% yearly.
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.
- Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 4.86% on average per year.
EPS Next Y10.75%
EPS Next 2Y12.11%
EPS Next 3Y12.56%
EPS Next 5Y10.15%
Revenue Next Year7.16%
Revenue Next 2Y6.22%
Revenue Next 3Y5.76%
Revenue Next 5Y4.86%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ELAN Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.93, 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 27.87.
- A Price/Forward Earnings ratio of 22.51 indicates a rather expensive valuation of ELAN.
- Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than 78.01% of the companies in the same industry.
- ELAN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 38.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.93 | ||
| Fwd PE | 22.51 |
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 the industry average as 78.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.45 | ||
| EV/EBITDA | 16.06 |
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 12.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.32
PEG (5Y)1.65
EPS Next 2Y12.11%
EPS Next 3Y12.56%
5. ELAN Dividend Analysis
5.1 Amount
- No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ELAN Fundamentals: All Metrics, Ratios and Statistics
23.68
+0.55 (+2.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-24 2026-02-24/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners110.27%
Inst Owner Change0.08%
Ins Owners1.08%
Ins Owner Change12.54%
Market Cap11.83B
Revenue(TTM)4.71B
Net Income(TTM)-232.00M
Analysts85.45
Price Target30.18 (27.45%)
Short Float %5.2%
Short Ratio4.98
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)10.94%
PT rev (3m)15.84%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.93 | ||
| Fwd PE | 22.51 | ||
| P/S | 2.5 | ||
| P/FCF | 41.45 | ||
| P/OCF | 21.02 | ||
| P/B | 1.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.06 |
EPS(TTM)0.95
EY4.01%
EPS(NY)1.05
Fwd EY4.44%
FCF(TTM)0.57
FCFY2.41%
OCF(TTM)1.13
OCFY4.76%
SpS9.48
BVpS13.17
TBVpS-3.3
PEG (NY)2.32
PEG (5Y)1.65
Graham Number16.7773 (-29.15%)
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 | 1.37 |
F-Score5
WACC8.69%
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 Y10.75%
EPS Next 2Y12.11%
EPS Next 3Y12.56%
EPS Next 5Y10.15%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y2.25%
Revenue growth 5Y7.59%
Sales Q2Q%12.16%
Revenue Next Year7.16%
Revenue Next 2Y6.22%
Revenue Next 3Y5.76%
Revenue Next 5Y4.86%
EBIT growth 1Y0.4%
EBIT growth 3Y-13.1%
EBIT growth 5YN/A
EBIT Next Year39.52%
EBIT Next 3Y18.84%
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 4 / 10 to ELAN.
What is the valuation status of ELANCO ANIMAL HEALTH INC (ELAN) stock?
ChartMill assigns a valuation rating of 4 / 10 to ELANCO ANIMAL HEALTH INC (ELAN). This can be considered as Fairly Valued.
How profitable is ELANCO ANIMAL HEALTH INC (ELAN) stock?
ELANCO ANIMAL HEALTH INC (ELAN) has a profitability rating of 5 / 10.
What is the valuation of ELANCO ANIMAL HEALTH INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ELANCO ANIMAL HEALTH INC (ELAN) is 24.93 and the Price/Book (PB) ratio is 1.8.
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 10.75% in the next year.