ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - NYSE:ELAN - US28414H1032 - Common Stock
21.6 USD
-0.9 (-4%)
21.72 USD
+0.12 (+0.56%)
We assign a fundamental rating of 4 out of 10 to ELAN. ELAN was compared to 192 industry peers in the Pharmaceuticals industry. ELAN has only an average score on both its financial health and profitability. ELAN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ELAN was profitable.
In the past year ELAN had a positive cash flow from operations.
ELAN had negative earnings in 4 of the past 5 years.
Of the past 5 years ELAN 4 years had a positive operating cash flow.
1.2 Ratios
ELAN's Return On Assets of 3.16% is amongst the best of the industry. ELAN outperforms 85.94% of its industry peers.
The Return On Equity of ELAN (6.41%) is better than 86.46% of its industry peers.
ELAN has a Return On Invested Capital of 1.17%. This is in the better half of the industry: ELAN outperforms 78.65% of its industry peers.
ELAN had an Average Return On Invested Capital over the past 3 years of 1.73%. This is significantly below the industry average of 15.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.41% | ||
| ROIC | 1.17% |
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
ELAN's Profit Margin of 9.68% is amongst the best of the industry. ELAN outperforms 84.90% of its industry peers.
ELAN's Profit Margin has improved in the last couple of years.
ELAN has a Operating Margin of 4.66%. This is amongst the best in the industry. ELAN outperforms 80.21% of its industry peers.
In the last couple of years the Operating Margin of ELAN has declined.
With a decent Gross Margin value of 54.73%, ELAN is doing good in the industry, outperforming 65.63% of the companies in the same industry.
ELAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.66% | ||
| PM (TTM) | 9.68% | ||
| GM | 54.73% |
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
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
ELAN has more shares outstanding than it did 5 years ago.
ELAN has a better debt/assets ratio than last year.
2.2 Solvency
ELAN has an Altman-Z score of 1.34. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
ELAN's Altman-Z score of 1.34 is fine compared to the rest of the industry. ELAN outperforms 60.94% of its industry peers.
ELAN has a debt to FCF ratio of 12.13. This is a negative value and a sign of low solvency as ELAN would need 12.13 years to pay back of all of its debts.
ELAN has a Debt to FCF ratio of 12.13. This is in the better half of the industry: ELAN outperforms 77.60% of its industry peers.
ELAN has a Debt/Equity ratio of 0.61. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, ELAN is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 12.13 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.14
WACC8.16%
2.3 Liquidity
ELAN has a Current Ratio of 2.60. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
ELAN has a Current ratio (2.60) which is in line with its industry peers.
ELAN has a Quick Ratio of 1.40. This is a normal value and indicates that ELAN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.40, ELAN is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
The Earnings Per Share has been decreasing by -3.01% on average over the past years.
Looking at the last year, ELAN shows a decrease in Revenue. The Revenue has decreased by -0.18% in the last year.
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)0%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%-13.33%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%4.81%
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 9.06% on average per year.
ELAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
EPS Next Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.06%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.00, which indicates a rather expensive current valuation of ELAN.
80.73% 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 26.13.
With a Price/Forward Earnings ratio of 21.10, ELAN is valued on the expensive side.
ELAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ELAN is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, ELAN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 21.1 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than ELAN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ELAN is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.93 | ||
| EV/EBITDA | 17.01 |
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)18.99
PEG (5Y)N/A
EPS Next 2Y6.06%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.6
-0.9 (-4%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners109.76%
Inst Owner Change-0.23%
Ins Owners0.95%
Ins Owner Change2.26%
Market Cap10.73B
Revenue(TTM)4.48B
Net Income(TTM)434.00M
Analysts80.95
Price Target22.35 (3.47%)
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)23.75%
Min EPS beat(2)17.01%
Max EPS beat(2)30.48%
EPS beat(4)3
Avg EPS beat(4)11.68%
Min EPS beat(4)-8.7%
Max EPS beat(4)30.48%
EPS beat(8)6
Avg EPS beat(8)14.72%
EPS beat(12)10
Avg EPS beat(12)42.39%
EPS beat(16)13
Avg EPS beat(16)36.28%
Revenue beat(2)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)0.08%
Max Revenue beat(2)2.48%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-2.37%
Max Revenue beat(4)2.48%
Revenue beat(8)6
Avg Revenue beat(8)0.34%
Revenue beat(12)8
Avg Revenue beat(12)0.23%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)17.16%
PT rev (3m)42.73%
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 | 24 | ||
| Fwd PE | 21.1 | ||
| P/S | 2.39 | ||
| P/FCF | 30.93 | ||
| P/OCF | 18.76 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.01 |
EPS(TTM)0.9
EY4.17%
EPS(NY)1.02
Fwd EY4.74%
FCF(TTM)0.7
FCFY3.23%
OCF(TTM)1.15
OCFY5.33%
SpS9.03
BVpS13.64
TBVpS-3.4
PEG (NY)18.99
PEG (5Y)N/A
Graham Number16.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.41% | ||
| ROCE | 1.69% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.23% | ||
| ROICexgc | 4.32% | ||
| OM | 4.66% | ||
| PM (TTM) | 9.68% | ||
| GM | 54.73% | ||
| FCFM | 7.74% |
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-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 12.13 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 33.89% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.52% | ||
| Profit Quality | 79.95% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.34 |
F-Score5
WACC8.16%
ROIC/WACC0.14
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)0%
EPS 3Y-4.66%
EPS 5Y-3.01%
EPS Q2Q%-13.33%
EPS Next Y1.26%
EPS Next 2Y6.06%
EPS Next 3Y8.62%
EPS Next 5Y9.06%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%4.81%
Revenue Next Year4.03%
Revenue Next 2Y4.5%
Revenue Next 3Y4.49%
Revenue Next 5Y4.17%
EBIT growth 1Y-30.33%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year16.94%
EBIT Next 3Y11.82%
EBIT Next 5Y9.69%
FCF growth 1Y498.85%
FCF growth 3Y9.94%
FCF growth 5Y70.08%
OCF growth 1Y384.75%
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.