ELANCO ANIMAL HEALTH INC (ELAN) Fundamental Analysis & Valuation

NYSE:ELAN • US28414H1032

Current stock price

24.955 USD
-0.55 (-2.14%)
Last:

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

4

1. ELAN Profitability Analysis

1.1 Basic Checks

  • In the past year ELAN was profitable.
  • ELAN had a positive operating cash flow in the past year.
  • 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

  • The Return On Assets of ELAN (-1.74%) is better than 76.68% of its industry peers.
  • ELAN has a Return On Equity of -3.54%. This is in the better half of the industry: ELAN outperforms 78.76% of its industry peers.
  • ELAN has a better Return On Invested Capital (1.48%) than 78.76% of its industry peers.
  • ELAN had an Average Return On Invested Capital over the past 3 years of 1.58%. This is significantly below the industry average of 13.06%.
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

  • The Operating Margin of ELAN (5.34%) is better than 79.79% of its industry peers.
  • ELAN's Operating Margin has declined in the last couple of years.
  • ELAN has a Gross Margin of 54.99%. This is in the better half of the industry: ELAN outperforms 67.88% 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.
  • ELAN has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ELAN has more shares outstanding
  • Compared to 1 year ago, ELAN has an improved debt to assets ratio.
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

  • Based on the Altman-Z score of 1.47, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
  • ELAN's Altman-Z score of 1.47 is in line compared to the rest of the industry. ELAN outperforms 58.55% 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 77.72% of its industry peers.
  • A Debt/Equity ratio of 0.60 indicates that ELAN is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.60, ELAN is not doing good in the industry: 64.77% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 14.14
Altman-Z 1.47
ROIC/WACC0.17
WACC8.83%
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

  • 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.
  • With a Current ratio value of 2.17, ELAN perfoms like the industry average, outperforming 42.49% of the companies in the same industry.
  • 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.
  • ELAN has a Quick ratio of 1.08. This is in the lower half of the industry: ELAN underperforms 75.65% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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%.
  • Measured over the past years, ELAN shows a small growth in Revenue. The Revenue has been growing by 7.59% on average per year.
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

  • The Earnings Per Share is expected to grow by 10.15% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 4.86% on average over the next years.
EPS Next Y10.73%
EPS Next 2Y11.57%
EPS Next 3Y12.11%
EPS Next 5Y10.15%
Revenue Next Year7.56%
Revenue Next 2Y6.22%
Revenue Next 3Y5.76%
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.
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

  • ELAN is valuated quite expensively with a Price/Earnings ratio of 26.27.
  • Compared to the rest of the industry, the Price/Earnings ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 79.79% of the companies listed in the same industry.
  • ELAN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • ELAN is valuated rather expensively with a Price/Forward Earnings ratio of 23.72.
  • Based on the Price/Forward Earnings ratio, ELAN is valued a bit cheaper than 76.17% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ELAN to the average of the S&P500 Index (22.79), we can say ELAN is valued inline with the index average.
Industry RankSector Rank
PE 26.27
Fwd PE 23.72
ELAN Price Earnings VS Forward Price EarningsELAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaply inside the industry as 81.87% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 78.24% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 43.69
EV/EBITDA 17.33
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 12.11% in the coming years.
PEG (NY)2.45
PEG (5Y)1.74
EPS Next 2Y11.57%
EPS Next 3Y12.11%

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

0

5. ELAN Dividend Analysis

5.1 Amount

  • No dividends for ELAN!.
Industry RankSector Rank
Dividend Yield 0%

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ELAN Fundamentals: All Metrics, Ratios and Statistics

ELANCO ANIMAL HEALTH INC

NYSE:ELAN (3/26/2026, 2:21:08 PM)

24.955

-0.55 (-2.14%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-24
Earnings (Next)05-05
Inst Owners109.64%
Inst Owner Change-10.47%
Ins Owners0.98%
Ins Owner Change14.28%
Market Cap12.41B
Revenue(TTM)4.71B
Net Income(TTM)-232.00M
Analysts85.45
Price Target27.2 (9%)
Short Float %3.07%
Short Ratio3.32
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)0.78%
PT rev (3m)8.11%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)2.2%
Valuation
Industry RankSector Rank
PE 26.27
Fwd PE 23.72
P/S 2.63
P/FCF 43.69
P/OCF 22.16
P/B 1.9
P/tB N/A
EV/EBITDA 17.33
EPS(TTM)0.95
EY3.81%
EPS(NY)1.05
Fwd EY4.22%
FCF(TTM)0.57
FCFY2.29%
OCF(TTM)1.13
OCFY4.51%
SpS9.48
BVpS13.17
TBVpS-3.3
PEG (NY)2.45
PEG (5Y)1.74
Graham Number16.78
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 1.47
F-Score5
WACC8.83%
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 Y10.73%
EPS Next 2Y11.57%
EPS Next 3Y12.11%
EPS Next 5Y10.15%
Revenue 1Y (TTM)6.22%
Revenue growth 3Y2.25%
Revenue growth 5Y7.59%
Sales Q2Q%12.16%
Revenue Next Year7.56%
Revenue Next 2Y6.22%
Revenue Next 3Y5.76%
Revenue Next 5Y4.86%
EBIT growth 1Y0.4%
EBIT growth 3Y-13.1%
EBIT growth 5YN/A
EBIT Next Year40.58%
EBIT Next 3Y18.81%
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 3 / 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 4 / 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 10.73% in the next year.