ELANCO ANIMAL HEALTH INC (ELAN) Fundamental Analysis & Valuation
NYSE:ELAN • US28414H1032
Current stock price
22.75 USD
+0.36 (+1.61%)
At close:
22.75 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.
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.
- In the past 5 years ELAN reported 4 times negative net income.
- ELAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ELAN (-1.74%) is better than 75.92% of its industry peers.
- The Return On Equity of ELAN (-3.54%) is better than 78.53% of its industry peers.
- With a decent Return On Invested Capital value of 1.48%, ELAN is doing good in the industry, outperforming 79.06% 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 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
- The Operating Margin of ELAN (5.34%) is better than 80.10% of its industry peers.
- ELAN's Operating Margin has declined in the last couple of years.
- ELAN has a better Gross Margin (54.99%) than 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
- 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.
- ELAN has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ELAN has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.34, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
- ELAN's Altman-Z score of 1.34 is in line compared to the rest of the industry. ELAN outperforms 54.45% of its industry peers.
- ELAN has a debt to FCF ratio of 14.14. This is a negative value and a sign of low solvency as ELAN would need 14.14 years to pay back of 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.
- ELAN has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: ELAN underperforms 69.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.14 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.17
WACC8.87%
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.
- ELAN has a Current ratio of 2.17. This is in the lower half of the industry: ELAN underperforms 60.73% of its industry peers.
- ELAN has a Quick Ratio of 1.08. This is a normal value and indicates that ELAN is financially healthy and should not expect problems in meeting 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 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.
- Looking at the last year, ELAN shows a small growth in Revenue. The Revenue has grown by 6.22% in the last year.
- The Revenue has been growing slightly by 7.59% on average over the past years.
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
- Based on estimates for the next years, ELAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.15% on average per year.
- The Revenue is expected to grow by 4.86% on average over the next years.
EPS Next Y10.75%
EPS Next 2Y12.11%
EPS Next 3Y12.56%
EPS Next 5Y10.15%
Revenue Next Year7.16%
Revenue Next 2Y6.23%
Revenue Next 3Y5.77%
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
- ELAN is valuated rather expensively with a Price/Earnings ratio of 23.95.
- 81.15% of the companies in the same industry are more expensive than ELAN, based on the Price/Earnings ratio.
- ELAN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.42.
- ELAN is valuated rather expensively with a Price/Forward Earnings ratio of 21.62.
- 78.53% 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 (22.24), we can say ELAN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.95 | ||
| Fwd PE | 21.62 |
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.
- ELAN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 78.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40 | ||
| EV/EBITDA | 15.72 |
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)2.23
PEG (5Y)1.58
EPS Next 2Y12.11%
EPS Next 3Y12.56%
5. ELAN Dividend Analysis
5.1 Amount
- ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ELAN Fundamentals: All Metrics, Ratios and Statistics
22.75
+0.36 (+1.61%)
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 Cap11.36B
Revenue(TTM)4.71B
Net Income(TTM)-232.00M
Analysts85.45
Price Target30.18 (32.66%)
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)-0.32%
EPS NQ rev (3m)-1.68%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.95 | ||
| Fwd PE | 21.62 | ||
| P/S | 2.41 | ||
| P/FCF | 40 | ||
| P/OCF | 20.29 | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)0.95
EY4.18%
EPS(NY)1.05
Fwd EY4.62%
FCF(TTM)0.57
FCFY2.5%
OCF(TTM)1.12
OCFY4.93%
SpS9.44
BVpS13.11
TBVpS-3.28
PEG (NY)2.23
PEG (5Y)1.58
Graham Number16.7401 (-26.42%)
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 | 1.34 |
F-Score5
WACC8.87%
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 2Y6.23%
Revenue Next 3Y5.77%
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 23.95 and the Price/Book (PB) ratio is 1.74.
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.