ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - NYSE:ELAN - US28414H1032 - Common Stock
22.04 USD
-0.01 (-0.05%)
We assign a fundamental rating of 4 out of 10 to ELAN. ELAN was compared to 191 industry peers in the Pharmaceuticals industry. ELAN has only an average score on both its financial health and profitability. ELAN has a correct valuation and a medium growth rate.
1. Profitability
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.
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 80.10% of its industry peers.
ELAN's Return On Equity of 0.53% is amongst the best of the industry. ELAN outperforms 81.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.38%, ELAN is in the better half of the industry, outperforming 79.06% of the companies in the same industry.
ELAN had an Average Return On Invested Capital over the past 3 years of 1.73%. This is significantly below the industry average of 15.35%.
| 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
The Profit Margin of ELAN (0.78%) is better than 80.10% of its industry peers.
In the last couple of years the Profit Margin of ELAN has grown nicely.
The Operating Margin of ELAN (5.25%) is better than 80.10% of its industry peers.
In the last couple of years the Operating Margin of ELAN has declined.
ELAN has a better Gross Margin (54.96%) than 65.44% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ELAN is destroying value.
ELAN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ELAN has more shares outstanding
ELAN has a better debt/assets ratio than last year.
2.2 Solvency
ELAN has an Altman-Z score of 1.35. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
ELAN has a better Altman-Z score (1.35) than 60.73% of its industry peers.
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.
With a decent Debt to FCF ratio value of 11.12, ELAN is doing good in the industry, outperforming 77.49% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that 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 65.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.17
WACC8.24%
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 (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.
With a Quick ratio value of 1.23, ELAN is not doing good in the industry: 70.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.94% over the past year.
ELAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.01% yearly.
ELAN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
Measured over the past years, ELAN shows a small growth in Revenue. The Revenue has been growing by 7.65% on average per year.
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
ELAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.53% yearly.
Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.53%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.26%
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
The Price/Earnings ratio is 22.96, which indicates a rather expensive current valuation of ELAN.
79.06% of the companies in the same industry are more expensive than ELAN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ELAN to the average of the S&P500 Index (26.34), we can say ELAN is valued inline with the index average.
A Price/Forward Earnings ratio of 21.53 indicates a rather expensive valuation of ELAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 75.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. ELAN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 21.53 |
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 80.63% of the companies listed in the same industry.
79.58% of the companies in the same industry are more expensive than ELAN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.25 | ||
| EV/EBITDA | 15.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ELAN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)18.17
PEG (5Y)N/A
EPS Next 2Y6.06%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
ELAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ELAN (11/13/2025, 3:38:10 PM)
22.04
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners109.76%
Inst Owner Change1.38%
Ins Owners0.95%
Ins Owner Change2.26%
Market Cap10.95B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts81.9
Price Target22.35 (1.41%)
Short Float %5.05%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)14.11%
PT rev (3m)34.41%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-3.24%
EPS NY rev (1m)1.82%
EPS NY rev (3m)7.57%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 21.53 | ||
| P/S | 2.39 | ||
| P/FCF | 30.25 | ||
| P/OCF | 17.41 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.89 |
EPS(TTM)0.96
EY4.36%
EPS(NY)1.02
Fwd EY4.64%
FCF(TTM)0.73
FCFY3.31%
OCF(TTM)1.27
OCFY5.74%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)18.17
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 | 1.35 |
F-Score6
WACC8.24%
ROIC/WACC0.17
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 Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.53%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.26%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year16.94%
EBIT Next 3Y11.82%
EBIT Next 5Y10.06%
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 6 / 10.
What is the financial health of ELANCO ANIMAL HEALTH INC (ELAN) stock?
The financial health rating of ELANCO ANIMAL HEALTH INC (ELAN) is 4 / 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 1.26% in the next year.