Logo image of ELAN

ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis

NYSE:ELAN - New York Stock Exchange, Inc. - US28414H1032 - Common Stock - Currency: USD

11.02  -0.11 (-0.99%)

After market: 11.05 +0.03 (+0.27%)

Fundamental Rating

4

ELAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 194 industry peers in the Pharmaceuticals industry. While ELAN is still in line with the averages on profitability rating, there are concerns on its financial health. ELAN is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

Quickly go to:

6

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500M -1B

1.2 Ratios

Looking at the Return On Assets, with a value of 1.54%, ELAN belongs to the top of the industry, outperforming 84.86% of the companies in the same industry.
The Return On Equity of ELAN (3.14%) is better than 85.41% of its industry peers.
The Return On Invested Capital of ELAN (1.67%) is better than 78.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ELAN is significantly below the industry average of 44.04%.
Industry RankSector Rank
ROA 1.54%
ROE 3.14%
ROIC 1.67%
ROA(3y)-4%
ROA(5y)-2.9%
ROE(3y)-9.09%
ROE(5y)-6.56%
ROIC(3y)1.93%
ROIC(5y)N/A
ELAN Yearly ROA, ROE, ROICELAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -5 -10 -15

1.3 Margins

ELAN has a Profit Margin of 4.60%. This is amongst the best in the industry. ELAN outperforms 85.41% of its industry peers.
With a decent Operating Margin value of 5.68%, ELAN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ELAN has declined.
ELAN's Gross Margin of 54.69% is fine compared to the rest of the industry. ELAN outperforms 63.78% of its industry peers.
ELAN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 5.68%
PM (TTM) 4.6%
GM 54.69%
OM growth 3YN/A
OM growth 5Y-6.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.7%
GM growth 5Y2.94%
ELAN Yearly Profit, Operating, Gross MarginsELAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

More info and screens

3

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
Compared to 1 year ago, ELAN has a worse debt to assets ratio.
ELAN Yearly Shares OutstandingELAN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 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 5B 10B 15B

2.2 Solvency

Based on the Altman-Z score of 0.87, we must say that ELAN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.87, ELAN is in line with its industry, outperforming 58.38% of the companies in the same industry.
ELAN has a debt to FCF ratio of 11.71. This is a negative value and a sign of low solvency as ELAN would need 11.71 years to pay back of all of its debts.
The Debt to FCF ratio of ELAN (11.71) is better than 81.08% of its industry peers.
ELAN has a Debt/Equity ratio of 0.66. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
ELAN has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: ELAN underperforms 68.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 11.71
Altman-Z 0.87
ROIC/WACC0.19
WACC8.94%
ELAN Yearly LT Debt VS Equity VS FCFELAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B

2.3 Liquidity

ELAN has a Current Ratio of 2.55. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
ELAN has a Current ratio (2.55) which is in line with its industry peers.
ELAN has a Quick Ratio of 1.31. 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 worse Quick ratio (1.31) than 72.97% of its industry peers.
Industry RankSector Rank
Current Ratio 2.55
Quick Ratio 1.31
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 1B 2B 3B

More info and screens

4

3. Growth

3.1 Past

The earnings per share for ELAN have decreased strongly by -15.00% in the last year.
The Earnings Per Share has been growing by 23.72% on average over the past years. This is a very strong growth
ELAN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.09%.
Measured over the past years, ELAN shows a small growth in Revenue. The Revenue has been growing by 7.57% on average per year.
EPS 1Y (TTM)-15%
EPS 3Y23.72%
EPS 5YN/A
EPS Q2Q%-27.78%
Revenue 1Y (TTM)2.09%
Revenue growth 3Y10.53%
Revenue growth 5Y7.57%
Sales Q2Q%-3.56%

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 10.65% on average per year.
Based on estimates for the next years, ELAN will show a small growth in Revenue. The Revenue will grow by 3.54% on average per year.
EPS Next Y5.06%
EPS Next 2Y1.66%
EPS Next 3Y6.37%
EPS Next 5Y10.65%
Revenue Next Year0.92%
Revenue Next 2Y1.7%
Revenue Next 3Y2.59%
Revenue Next 5Y3.54%

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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B 4B 5B
ELAN Yearly EPS VS EstimatesELAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0.5 1 1.5

More info and screens

7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.96, which indicates a correct valuation of ELAN.
90.27% 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 rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 11.98 indicates a reasonable valuation of ELAN.
Based on the Price/Forward Earnings ratio, ELAN is valued cheaper than 85.95% of the companies in the same industry.
ELAN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 12.96
Fwd PE 11.98
ELAN Price Earnings VS Forward Price EarningsELAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaper than 85.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaper than 89.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.64
EV/EBITDA 10.16
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 ELAN does not grow enough to justify the current Price/Earnings ratio.
ELAN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y1.66%
EPS Next 3Y6.37%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for ELAN!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

ELANCO ANIMAL HEALTH INC

NYSE:ELAN (2/21/2025, 8:15:33 PM)

After market: 11.05 +0.03 (+0.27%)

11.02

-0.11 (-0.99%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-25 2025-02-25/bmo
Inst Owners100.87%
Inst Owner Change1.6%
Ins Owners0.72%
Ins Owner Change0.08%
Market Cap5.45B
Analysts77.27
Price Target18.04 (63.7%)
Short Float %3.38%
Short Ratio3.5
Dividend
Industry RankSector 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)15.08%
Min EPS beat(2)7.92%
Max EPS beat(2)22.24%
EPS beat(4)3
Avg EPS beat(4)7.64%
Min EPS beat(4)-26.01%
Max EPS beat(4)26.41%
EPS beat(8)7
Avg EPS beat(8)55.82%
EPS beat(12)10
Avg EPS beat(12)44.09%
EPS beat(16)14
Avg EPS beat(16)40.05%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)0.85%
Revenue beat(4)3
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-2.37%
Max Revenue beat(4)1.27%
Revenue beat(8)6
Avg Revenue beat(8)0.47%
Revenue beat(12)6
Avg Revenue beat(12)-0.33%
Revenue beat(16)10
Avg Revenue beat(16)0.61%
PT rev (1m)-2.74%
PT rev (3m)-7.08%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-6.92%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.02%
Valuation
Industry RankSector Rank
PE 12.96
Fwd PE 11.98
P/S 1.22
P/FCF 14.64
P/OCF 10.46
P/B 0.84
P/tB N/A
EV/EBITDA 10.16
EPS(TTM)0.85
EY7.71%
EPS(NY)0.92
Fwd EY8.35%
FCF(TTM)0.75
FCFY6.83%
OCF(TTM)1.05
OCFY9.56%
SpS9.01
BVpS13.2
TBVpS-4.27
PEG (NY)2.56
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.54%
ROE 3.14%
ROCE 2.12%
ROIC 1.67%
ROICexc 1.74%
ROICexgc 7.05%
OM 5.68%
PM (TTM) 4.6%
GM 54.69%
FCFM 8.35%
ROA(3y)-4%
ROA(5y)-2.9%
ROE(3y)-9.09%
ROE(5y)-6.56%
ROIC(3y)1.93%
ROIC(5y)N/A
ROICexc(3y)1.99%
ROICexc(5y)N/A
ROICexgc(3y)9.85%
ROICexgc(5y)N/A
ROCE(3y)2.44%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.26%
ROICexc growth 3YN/A
ROICexc growth 5Y-9.38%
OM growth 3YN/A
OM growth 5Y-6.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.7%
GM growth 5Y2.94%
F-Score6
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 11.71
Debt/EBITDA 4.68
Cap/Depr 22.27%
Cap/Sales 3.35%
Interest Coverage 250
Cash Conversion 56.51%
Profit Quality 181.46%
Current Ratio 2.55
Quick Ratio 1.31
Altman-Z 0.87
F-Score6
WACC8.94%
ROIC/WACC0.19
Cap/Depr(3y)25.56%
Cap/Depr(5y)39.92%
Cap/Sales(3y)3.93%
Cap/Sales(5y)5.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15%
EPS 3Y23.72%
EPS 5YN/A
EPS Q2Q%-27.78%
EPS Next Y5.06%
EPS Next 2Y1.66%
EPS Next 3Y6.37%
EPS Next 5Y10.65%
Revenue 1Y (TTM)2.09%
Revenue growth 3Y10.53%
Revenue growth 5Y7.57%
Sales Q2Q%-3.56%
Revenue Next Year0.92%
Revenue Next 2Y1.7%
Revenue Next 3Y2.59%
Revenue Next 5Y3.54%
EBIT growth 1Y-24.48%
EBIT growth 3YN/A
EBIT growth 5Y0.77%
EBIT Next Year26.85%
EBIT Next 3Y11.67%
EBIT Next 5Y11.35%
FCF growth 1Y-20.17%
FCF growth 3YN/A
FCF growth 5Y-19.81%
OCF growth 1Y-21.3%
OCF growth 3YN/A
OCF growth 5Y-11.07%