ELANCO ANIMAL HEALTH INC (ELAN) Fundamental Analysis & Valuation
NYSE:ELAN • US28414H1032
Current stock price
22.15 USD
+0.06 (+0.27%)
At close:
22.15 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.
- 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.
1.2 Ratios
- ELAN has a better Return On Assets (-1.74%) than 75.92% of its industry peers.
- Looking at the Return On Equity, with a value of -3.54%, ELAN is in the better half of the industry, outperforming 78.53% of the companies in the same industry.
- 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.
- The Average Return On Invested Capital over the past 3 years for ELAN is significantly below the industry average of 13.10%.
| 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
- With an excellent Operating Margin value of 5.34%, ELAN belongs to the best 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.
- 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
- 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 1.33. 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 1.33. This is comparable to the rest of the industry: ELAN outperforms 52.88% 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.
- ELAN's Debt to FCF ratio of 14.14 is fine compared to the rest of the industry. ELAN outperforms 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 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.14 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.17
WACC8.92%
2.3 Liquidity
- A Current Ratio of 2.17 indicates that ELAN has no problem at all paying its short term obligations.
- ELAN's Current ratio of 2.17 is on the low side compared to the rest of the industry. ELAN is outperformed by 61.26% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.08 |
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.
- The Revenue has been growing slightly by 6.22% in the past year.
- 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.
- 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
- With a Price/Earnings ratio of 23.32, ELAN is valued on the expensive side.
- 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 26.91.
- A Price/Forward Earnings ratio of 21.05 indicates a rather expensive valuation of ELAN.
- ELAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 78.53% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 21.99. ELAN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 21.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaper than 81.68% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 79.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.95 | ||
| EV/EBITDA | 15.56 |
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.
- A more expensive valuation may be justified as ELAN's earnings are expected to grow with 12.56% in the coming years.
PEG (NY)2.17
PEG (5Y)1.54
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
22.15
+0.06 (+0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-24 2026-02-24/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners110.27%
Inst Owner Change0.16%
Ins Owners1.08%
Ins Owner Change12.54%
Market Cap11.06B
Revenue(TTM)4.71B
Net Income(TTM)-232.00M
Analysts85.45
Price Target30.18 (36.25%)
Short Float %4.98%
Short Ratio4.86
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)-0.39%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 21.05 | ||
| P/S | 2.35 | ||
| P/FCF | 38.95 | ||
| P/OCF | 19.75 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.56 |
EPS(TTM)0.95
EY4.29%
EPS(NY)1.05
Fwd EY4.75%
FCF(TTM)0.57
FCFY2.57%
OCF(TTM)1.12
OCFY5.06%
SpS9.44
BVpS13.11
TBVpS-3.28
PEG (NY)2.17
PEG (5Y)1.54
Graham Number16.7401 (-24.42%)
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 | 1.33 |
F-Score5
WACC8.92%
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 5Y10.36%
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 23.32 and the Price/Book (PB) ratio is 1.69.
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.