ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
22.38 USD
+0.16 (+0.72%)
22.38 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ELAN. ELAN was compared to 192 industry peers in the Pharmaceuticals industry. ELAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. ELAN is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 0.27%, ELAN is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
ELAN has a Return On Equity of 0.53%. This is amongst the best in the industry. ELAN outperforms 80.21% 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 78.13% of its industry peers.
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
ELAN has a Profit Margin of 0.78%. This is in the better half of the industry: ELAN outperforms 78.65% 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 79.17% 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 66.15% 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.
Compared to 1 year ago, ELAN has more shares outstanding
The number of shares outstanding for ELAN has been increased compared to 5 years ago.
ELAN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.36, 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 1.36, ELAN is in line with its industry, outperforming 54.17% of the companies in the same industry.
ELAN has a debt to FCF ratio of 11.12. This is a negative value and a sign of low solvency as ELAN would need 11.12 years to pay back of all of its debts.
ELAN has a Debt to FCF ratio of 11.12. This is in the better half of the industry: ELAN outperforms 78.65% of its industry peers.
ELAN has a Debt/Equity ratio of 0.59. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, ELAN is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.16
WACC8.67%
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.
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
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.
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
The Earnings Per Share is expected to grow by 10.20% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y4.8%
EPS Next 2Y7.34%
EPS Next 3Y9.15%
EPS Next 5Y10.2%
Revenue Next Year5.43%
Revenue Next 2Y5.37%
Revenue Next 3Y5.26%
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
ELAN is valuated rather expensively with a Price/Earnings ratio of 23.31.
79.69% of the companies in the same industry are more expensive than ELAN, based on the Price/Earnings ratio.
ELAN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.35, ELAN is valued on the expensive side.
76.04% 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 24.03, ELAN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaper than 80.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.72 | ||
| EV/EBITDA | 16.07 |
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)4.85
PEG (5Y)N/A
EPS Next 2Y7.34%
EPS Next 3Y9.15%
5. Dividend
5.1 Amount
ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.38
+0.16 (+0.72%)
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 Cap11.12B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts84.76
Price TargetN/A
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)12.59%
PT rev (3m)31.91%
EPS NQ rev (1m)-3.71%
EPS NQ rev (3m)-16.68%
EPS NY rev (1m)3.49%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.31 | ||
| Fwd PE | 21.35 | ||
| P/S | 2.42 | ||
| P/FCF | 30.72 | ||
| P/OCF | 17.68 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.07 |
EPS(TTM)0.96
EY4.29%
EPS(NY)1.05
Fwd EY4.68%
FCF(TTM)0.73
FCFY3.26%
OCF(TTM)1.27
OCFY5.66%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)4.85
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
WACC8.67%
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 Y4.8%
EPS Next 2Y7.34%
EPS Next 3Y9.15%
EPS Next 5Y10.2%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year5.43%
Revenue Next 2Y5.37%
Revenue Next 3Y5.26%
Revenue Next 5Y4.74%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year19.56%
EBIT Next 3Y12.91%
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 4.8% in the next year.