ELANCO ANIMAL HEALTH INC (ELAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ELAN - US28414H1032 - Common Stock
22.76 USD
+0.11 (+0.49%)
22.6863 USD
-0.07 (-0.32%)
Taking everything into account, ELAN scores 4 out of 10 in our fundamental rating. ELAN was compared to 191 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of ELAN while its profitability can be described as average. ELAN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ELAN had positive earnings in the past year.
ELAN had a positive operating cash flow in the past year.
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 0.27% is fine compared to the rest of the industry. ELAN outperforms 78.53% of its industry peers.
ELAN has a better Return On Equity (0.53%) than 80.10% of its industry peers.
ELAN has a Return On Invested Capital of 1.38%. This is in the better half of the industry: ELAN outperforms 78.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ELAN is significantly below the industry average of 12.85%.
| 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
With a decent Profit Margin value of 0.78%, ELAN is doing good in the industry, outperforming 78.53% of the companies in the same industry.
In the last couple of years the Profit Margin of ELAN has grown nicely.
ELAN has a better Operating Margin (5.25%) than 79.06% of its industry peers.
ELAN's Operating Margin has declined in the last couple of years.
ELAN has a Gross Margin of 54.96%. This is in the better half of the industry: ELAN outperforms 66.49% of its industry peers.
ELAN's Gross Margin has been stable in the last couple of years.
| 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
ELAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ELAN has been increased compared to 1 year ago.
ELAN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ELAN has an improved debt to assets ratio.
2.2 Solvency
ELAN has an Altman-Z score of 1.38. This is a bad value and indicates that ELAN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, ELAN is in line with its industry, outperforming 54.45% of the companies in the same industry.
The Debt to FCF ratio of ELAN is 11.12, which is on the high side as it means it would take ELAN, 11.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 11.12, ELAN is doing good in the industry, outperforming 78.53% of the companies in the same industry.
ELAN has a Debt/Equity ratio of 0.59. This is a neutral value indicating ELAN is somewhat dependend on debt financing.
ELAN has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: ELAN underperforms 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.16
WACC8.6%
2.3 Liquidity
ELAN has a Current Ratio of 2.40. This indicates that ELAN is financially healthy and has no problem in meeting its short term obligations.
ELAN's Current ratio of 2.40 is in line compared to the rest of the industry. ELAN outperforms 43.98% of 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: 72.77% 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.
The Earnings Per Share has been decreasing by -3.01% on average over the past years.
ELAN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
The Revenue has been growing slightly by 7.65% on average over the past years.
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
Based on estimates for the next years, ELAN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.20% on average per year.
The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y5.08%
EPS Next 2Y7.64%
EPS Next 3Y9.24%
EPS Next 5Y10.2%
Revenue Next Year5.5%
Revenue Next 2Y5.61%
Revenue Next 3Y5.5%
Revenue Next 5Y4.74%
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
A Price/Earnings ratio of 23.71 indicates a rather expensive valuation of ELAN.
Compared to the rest of the industry, the Price/Earnings ratio of ELAN indicates a somewhat cheap valuation: ELAN is cheaper than 79.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.77, ELAN is valued at the same level.
The Price/Forward Earnings ratio is 21.59, which indicates a rather expensive current 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 23.35. ELAN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 21.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ELAN is valued cheaper than 80.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ELAN is valued cheaper than 80.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.24 | ||
| EV/EBITDA | 16.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.66
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
No dividends for ELAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.76
+0.11 (+0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners116.66%
Inst Owner Change5.99%
Ins Owners0.97%
Ins Owner Change4.61%
Market Cap11.31B
Revenue(TTM)4.59B
Net Income(TTM)36.00M
Analysts84.76
Price Target26.05 (14.46%)
Short Float %4.23%
Short Ratio3.7
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)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)6.41%
PT rev (3m)36.57%
EPS NQ rev (1m)-2.19%
EPS NQ rev (3m)-15.37%
EPS NY rev (1m)3.77%
EPS NY rev (3m)5.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 21.59 | ||
| P/S | 2.46 | ||
| P/FCF | 31.24 | ||
| P/OCF | 17.98 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.28 |
EPS(TTM)0.96
EY4.22%
EPS(NY)1.05
Fwd EY4.63%
FCF(TTM)0.73
FCFY3.2%
OCF(TTM)1.27
OCFY5.56%
SpS9.24
BVpS13.58
TBVpS-3.24
PEG (NY)4.66
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 | 1.38 |
F-Score6
WACC8.6%
ROIC/WACC0.16
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 Y5.08%
EPS Next 2Y7.64%
EPS Next 3Y9.24%
EPS Next 5Y10.2%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y-2.33%
Revenue growth 5Y7.65%
Sales Q2Q%10.39%
Revenue Next Year5.5%
Revenue Next 2Y5.61%
Revenue Next 3Y5.5%
Revenue Next 5Y4.74%
EBIT growth 1Y-4.74%
EBIT growth 3Y-6.19%
EBIT growth 5Y-7.47%
EBIT Next Year19.45%
EBIT Next 3Y12.64%
EBIT Next 5Y10.33%
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 5 / 10.
What is the financial health of ELANCO ANIMAL HEALTH INC (ELAN) stock?
The financial health rating of ELANCO ANIMAL HEALTH INC (ELAN) is 3 / 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 5.08% in the next year.