ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
23.47 USD
+0.23 (+0.99%)
23.55 USD
+0.08 (+0.34%)
Taking everything into account, ELAN scores 4 out of 10 in our fundamental rating. ELAN was compared to 191 industry peers in the Pharmaceuticals industry. While ELAN is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Of the past 5 years ELAN 4 years had a positive operating cash flow.
1.2 Ratios
ELAN has a better Return On Assets (0.27%) than 78.53% 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 80.10% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.38%, ELAN is in the better half of the industry, outperforming 78.01% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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 78.53% 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 5.25%. This is in the better half of the industry: ELAN outperforms 79.06% of its industry peers.
ELAN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.96%, ELAN is in the better half of the industry, outperforming 67.02% 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
ELAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ELAN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ELAN has been increased compared to 5 years ago.
The debt/assets ratio for ELAN has been reduced compared to a year ago.
2.2 Solvency
ELAN has an Altman-Z score of 1.40. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.40, ELAN perfoms like the industry average, outperforming 54.45% 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 78.53% 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 worse Debt to Equity ratio (0.59) than 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.16
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.40 indicates that ELAN has no problem at all paying its short term obligations.
ELAN has a Current ratio of 2.40. This is comparable to the rest of the industry: ELAN outperforms 43.98% of its industry peers.
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 72.77% 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.
Measured over the past years, ELAN shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.01% on average per year.
Looking at the last year, ELAN shows a small growth in Revenue. The Revenue has grown by 3.08% in the last year.
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
Based on estimates for the next years, ELAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.20% on average per year.
ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
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
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
With a Price/Earnings ratio of 24.45, ELAN is valued on the expensive side.
Based on the Price/Earnings ratio, ELAN is valued a bit cheaper than 78.53% of the companies in the same industry.
ELAN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 22.26, ELAN is valued on the expensive side.
ELAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 75.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. ELAN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 22.26 |
4.2 Price Multiples
80.63% of the companies in the same industry are more expensive than ELAN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaper than 80.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.21 | ||
| EV/EBITDA | 16.54 |
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.
PEG (NY)4.81
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% |
23.47
+0.23 (+0.99%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners116.54%
Inst Owner Change0%
Ins Owners0.99%
Ins Owner Change4.72%
Market Cap11.66B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts84.76
Price Target26.05 (10.99%)
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)6.41%
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 | 24.45 | ||
| Fwd PE | 22.26 | ||
| P/S | 2.54 | ||
| P/FCF | 32.21 | ||
| P/OCF | 18.54 | ||
| P/B | 1.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.54 |
EPS(TTM)0.96
EY4.09%
EPS(NY)1.05
Fwd EY4.49%
FCF(TTM)0.73
FCFY3.1%
OCF(TTM)1.27
OCFY5.39%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)4.81
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 | 1.4 |
F-Score6
WACC8.75%
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.
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.