ELANCO ANIMAL HEALTH INC (ELAN) Fundamental Analysis & Valuation

NYSE:ELAN • US28414H1032

Current stock price

21.8 USD
-0.35 (-1.58%)
At close:
21.8 USD
0 (0%)
After Hours:

This ELAN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. ELAN Profitability Analysis

1.1 Basic Checks

  • ELAN had positive earnings in the past year.
  • In the past year ELAN had a positive cash flow from operations.
  • In the past 5 years ELAN reported 4 times negative net income.
  • In the past 5 years ELAN always reported a positive cash flow from operatings.
ELAN Yearly Net Income VS EBIT VS OCF VS FCFELAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M -1B

1.2 Ratios

  • With a decent Return On Assets value of -1.74%, ELAN is doing good in the industry, outperforming 75.92% of the companies in the same industry.
  • 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.
  • Looking at the Return On Invested Capital, with a value of 1.48%, ELAN is in the better half of the industry, outperforming 79.06% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ELAN is significantly below the industry average of 13.10%.
Industry RankSector 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%
ELAN Yearly ROA, ROE, ROICELAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 -10 -15

1.3 Margins

  • Looking at the Operating Margin, with a value of 5.34%, ELAN belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ELAN has declined.
  • ELAN has a Gross Margin of 54.99%. This is in the better half of the industry: ELAN outperforms 65.97% of its industry peers.
  • ELAN's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
ELAN Yearly Profit, Operating, Gross MarginsELAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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3

2. ELAN Health Analysis

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
  • Compared to 5 years ago, ELAN has more shares outstanding
  • The debt/assets ratio for ELAN has been reduced compared to a year ago.
ELAN Yearly Shares OutstandingELAN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ELAN Yearly Total Debt VS Total AssetsELAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • ELAN has an Altman-Z score of 1.31. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
  • ELAN has a Altman-Z score of 1.31. This is comparable to the rest of the industry: ELAN outperforms 53.40% of its industry peers.
  • 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.
  • The Debt to FCF ratio of ELAN (14.14) is better 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 70.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 14.14
Altman-Z 1.31
ROIC/WACC0.16
WACC9%
ELAN Yearly LT Debt VS Equity VS FCFELAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 2.17 indicates that ELAN has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.17, ELAN is doing worse than 61.26% of the companies in the same industry.
  • A Quick Ratio of 1.08 indicates that ELAN should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.08, ELAN is not doing good in the industry: 80.10% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 2.17
Quick Ratio 1.08
ELAN Yearly Current Assets VS Current LiabilitesELAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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4

3. ELAN Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.40% over the past year.
  • The Earnings Per Share has been growing by 15.11% on average over the past years. This is quite good.
  • ELAN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.22%.
  • 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

  • ELAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.36% yearly.
  • The Revenue is expected to grow by 5.15% on average over the next years.
EPS Next Y10.75%
EPS Next 2Y12.11%
EPS Next 3Y12.56%
EPS Next 5Y10.36%
Revenue Next Year7.16%
Revenue Next 2Y6.23%
Revenue Next 3Y5.77%
Revenue Next 5Y5.15%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
ELAN Yearly Revenue VS EstimatesELAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B
ELAN Yearly EPS VS EstimatesELAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0.5 1 1.5

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4

4. ELAN Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.95, ELAN is valued on the expensive side.
  • ELAN's Price/Earnings ratio is rather cheap when compared to the industry. ELAN is cheaper than 81.15% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ELAN to the average of the S&P500 Index (26.54), we can say ELAN is valued inline with the index average.
  • ELAN is valuated rather expensively with a Price/Forward Earnings ratio of 20.72.
  • Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than the industry average as 78.53% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 21.68. ELAN is around the same levels.
Industry RankSector Rank
PE 22.95
Fwd PE 20.72
ELAN Price Earnings VS Forward Price EarningsELAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELAN indicates a rather cheap valuation: ELAN is cheaper than 81.68% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ELAN is valued a bit cheaper than the industry average as 79.06% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 38.33
EV/EBITDA 15.41
ELAN Per share dataELAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • A more expensive valuation may be justified as ELAN's earnings are expected to grow with 12.56% in the coming years.
PEG (NY)2.13
PEG (5Y)1.52
EPS Next 2Y12.11%
EPS Next 3Y12.56%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ELAN Dividend Analysis

5.1 Amount

  • ELAN does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ELAN Fundamentals: All Metrics, Ratios and Statistics

ELANCO ANIMAL HEALTH INC

NYSE:ELAN (4/29/2026, 8:10:03 PM)

After market: 21.8 0 (0%)

21.8

-0.35 (-1.58%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry Strength65.84
Industry Growth15.53
Earnings (Last)02-24
Earnings (Next)05-06
Inst Owners110.27%
Inst Owner Change0.16%
Ins Owners1.08%
Ins Owner Change12.54%
Market Cap10.89B
Revenue(TTM)4.71B
Net Income(TTM)-232.00M
Analysts85.45
Price Target30.18 (38.44%)
Short Float %4.98%
Short Ratio4.86
Dividend
Industry RankSector 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)-0.39%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 22.95
Fwd PE 20.72
P/S 2.31
P/FCF 38.33
P/OCF 19.44
P/B 1.66
P/tB N/A
EV/EBITDA 15.41
EPS(TTM)0.95
EY4.36%
EPS(NY)1.05
Fwd EY4.83%
FCF(TTM)0.57
FCFY2.61%
OCF(TTM)1.12
OCFY5.14%
SpS9.44
BVpS13.11
TBVpS-3.28
PEG (NY)2.13
PEG (5Y)1.52
Graham Number16.7401 (-23.21%)
Profitability
Industry RankSector 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 RankSector 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 1.31
F-Score5
WACC9%
ROIC/WACC0.16
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 5Y10.36%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y2.25%
Revenue growth 5Y7.59%
Sales Q2Q%12.16%
Revenue Next Year7.16%
Revenue Next 2Y6.23%
Revenue Next 3Y5.77%
Revenue Next 5Y5.15%
EBIT growth 1Y0.4%
EBIT growth 3Y-13.1%
EBIT growth 5YN/A
EBIT Next Year39.52%
EBIT Next 3Y18.84%
EBIT Next 5Y13.07%
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 22.95 and the Price/Book (PB) ratio is 1.66.


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.