ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
22.25 USD
+1.01 (+4.76%)
22.11 USD
-0.14 (-0.63%)
ELAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of ELAN while its profitability can be described as average. 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
ELAN has a better Return On Assets (0.27%) than 79.17% of its industry peers.
Looking at the Return On Equity, with a value of 0.53%, ELAN belongs to the top of the industry, outperforming 80.73% of the companies in the same industry.
ELAN has a Return On Invested Capital of 1.38%. This is in the better half of the industry: ELAN outperforms 77.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ELAN is significantly below the industry average of 13.48%.
| 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
The Profit Margin of ELAN (0.78%) is better than 79.17% of its industry peers.
In the last couple of years the Profit Margin of ELAN has grown nicely.
The Operating Margin of ELAN (5.25%) is better than 78.65% of its industry peers.
In the last couple of years the Operating Margin of ELAN has declined.
With a decent Gross Margin value of 54.96%, ELAN is doing good in the industry, outperforming 65.10% of the companies in the same industry.
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 | 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.
The number of shares outstanding for ELAN has been increased compared to 1 year ago.
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 1.36. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
ELAN's Altman-Z score of 1.36 is in line compared to the rest of the industry. ELAN outperforms 58.33% of its industry peers.
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.
ELAN's Debt to FCF ratio of 11.12 is fine compared to the rest of the industry. ELAN outperforms 77.60% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that 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 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.17
WACC8.11%
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.
The Current ratio of ELAN (2.40) 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 has a Quick ratio of 1.23. This is in the lower half of the industry: ELAN underperforms 71.88% 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.
ELAN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
Measured over the past years, ELAN shows a small growth in Revenue. The Revenue has been growing by 7.65% on average per year.
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 9.53% 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 4.26% yearly.
EPS Next Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.53%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.26%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.18 indicates a rather expensive valuation of ELAN.
Based on the Price/Earnings ratio, ELAN is valued a bit cheaper than 78.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. ELAN is around the same levels.
A Price/Forward Earnings ratio of 21.74 indicates a rather expensive valuation of ELAN.
75.00% of the companies in the same industry are more expensive than ELAN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ELAN to the average of the S&P500 Index (34.46), we can say ELAN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 21.74 |
4.2 Price Multiples
80.21% of the companies in the same industry are more expensive than ELAN, based on the Enterprise Value to EBITDA ratio.
ELAN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.54 | ||
| EV/EBITDA | 16 |
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)18.34
PEG (5Y)N/A
EPS Next 2Y6.06%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.25
+1.01 (+4.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners109.76%
Inst Owner Change5.96%
Ins Owners0.95%
Ins Owner Change2.26%
Market Cap11.05B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts81.9
Price Target24.48 (10.02%)
Short Float %4.49%
Short Ratio4.02
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)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)25%
PT rev (3m)28.34%
EPS NQ rev (1m)-15.78%
EPS NQ rev (3m)-12.44%
EPS NY rev (1m)0%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 21.74 | ||
| P/S | 2.41 | ||
| P/FCF | 30.54 | ||
| P/OCF | 17.57 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16 |
EPS(TTM)0.96
EY4.31%
EPS(NY)1.02
Fwd EY4.6%
FCF(TTM)0.73
FCFY3.27%
OCF(TTM)1.27
OCFY5.69%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)18.34
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 | 1.36 |
F-Score6
WACC8.11%
ROIC/WACC0.17
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 Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.53%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.26%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year16.94%
EBIT Next 3Y11.82%
EBIT Next 5Y10.06%
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 6 / 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 1.26% in the next year.