company background image
ELAN

Elanco Animal HealthNYSE:ELAN Stock Report

Market Cap

US$14.3b

7D

-5.9%

1Y

-3.5%

Updated

26 Nov, 2021

Data

Company Financials +
ELAN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends0/6

ELAN Stock Overview

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals.

Rewards

Trading at 64.1% below our estimate of its fair value

Earnings are forecast to grow 57.85% per year

Risk Analysis

No risks detected for ELAN from our risk checks.

Elanco Animal Health Competitors

Merck

NYSE:MRK

US$200.0b

Zoetis

NYSE:ZTS

US$103.8b

Phibro Animal Health

NasdaqGM:PAHC

US$845.7m

Novartis

SWX:NOVN

CHF167.2b

Price History & Performance

Summary of all time highs, changes and price drops for Elanco Animal Health
Historical stock prices
Current Share PriceUS$30.22
52 Week HighUS$37.49
52 Week LowUS$27.33
Beta0.82
1 Month Change-9.28%
3 Month Change-9.28%
1 Year Change-3.51%
3 Year Change-9.55%
5 Year Changen/a
Change since IPO-16.06%

Recent News & Updates

Sep 09
An Intrinsic Calculation For Elanco Animal Health Incorporated (NYSE:ELAN) Suggests It's 29% Undervalued

An Intrinsic Calculation For Elanco Animal Health Incorporated (NYSE:ELAN) Suggests It's 29% Undervalued

In this article we are going to estimate the intrinsic value of Elanco Animal Health Incorporated ( NYSE:ELAN ) by...

Aug 21

Elanco's Tangible Equity Units: Low-Risk Option With A 5% Yield

Elanco’s worldwide business, pharmaceuticals, and food additives for pets and farm animals is recession-resistant - and growing rapidly. Since the 2018/2019 spin-off from Eli Lilly, Elanco has struggled to gain its operational and financial footing more than the comparable Zoetis. Recent acquisitions, i.e., Bayer Animal Health and Kindred Biosciences, are substantial and significant positive developments, but it will take time for consolidation, cost-cutting, synergies, etc. to impact the bottom line. Buying ELAT (a Tangible Equity Unit) offers the investor a low-risk option on Elanco’s future with an above-average current yield.

Shareholder Returns

ELANUS PharmaceuticalsUS Market
7D-5.9%-0.5%-2.7%
1Y-3.5%17.7%21.3%

Return vs Industry: ELAN underperformed the US Pharmaceuticals industry which returned 17.7% over the past year.

Return vs Market: ELAN underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is ELAN's price volatile compared to industry and market?
ELAN volatility
ELAN Average Weekly Movement3.1%
Pharmaceuticals Industry Average Movement9.3%
Market Average Movement5.9%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

Stable Share Price: ELAN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ELAN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195410,200Jeff Simmonshttps://www.elanco.com

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as functional nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations in approximately 90 countries in North America, Europe, the Middle East, Africa, Latin America, and the Asia-Pacific.

Elanco Animal Health Fundamentals Summary

How do Elanco Animal Health's earnings and revenue compare to its market cap?
ELAN fundamental statistics
Market CapUS$14.30b
Earnings (TTM)-US$698.10m
Revenue (TTM)US$4.79b

3.0x

P/S Ratio

-20.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ELAN income statement (TTM)
RevenueUS$4.79b
Cost of RevenueUS$2.10b
Gross ProfitUS$2.69b
ExpensesUS$3.39b
Earnings-US$698.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.48
Gross Margin56.24%
Net Profit Margin-14.57%
Debt/Equity Ratio82.8%

How did ELAN perform over the long term?

See historical performance and comparison

Valuation

Is Elanco Animal Health undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELAN ($30.22) is trading below our estimate of fair value ($84.09)

Significantly Below Fair Value: ELAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ELAN is unprofitable, so we can't compare its PE Ratio to the US Pharmaceuticals industry average.

PE vs Market: ELAN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ELAN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ELAN is good value based on its PB Ratio (1.9x) compared to the US Pharmaceuticals industry average (2.7x).


Future Growth

How is Elanco Animal Health forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

57.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELAN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: ELAN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ELAN's is expected to become profitable in the next 3 years.

Revenue vs Market: ELAN's revenue (3.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ELAN's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELAN's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Elanco Animal Health performed over the past 5 years?

-50.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELAN is currently unprofitable.

Growing Profit Margin: ELAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ELAN is unprofitable, and losses have increased over the past 5 years at a rate of 50.3% per year.

Accelerating Growth: Unable to compare ELAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ELAN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (12.2%).


Return on Equity

High ROE: ELAN has a negative Return on Equity (-9.09%), as it is currently unprofitable.


Financial Health

How is Elanco Animal Health's financial position?


Financial Position Analysis

Short Term Liabilities: ELAN's short term assets ($3.2B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: ELAN's short term assets ($3.2B) do not cover its long term liabilities ($7.5B).


Debt to Equity History and Analysis

Debt Level: ELAN's net debt to equity ratio (76.9%) is considered high.

Reducing Debt: Insufficient data to determine if ELAN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ELAN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ELAN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Elanco Animal Health current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ELAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ELAN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ELAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ELAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ELAN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jeff Simmons (54 yo)

no data

Tenure

US$8,958,820

Compensation

Mr. Jeffrey N. Simmons, also known as Jeff, serves as President and Chief Executive Officer at Elanco Animal Health Incorporated and has been its Director since 2018. Mr. Simmons has served as the Senior...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD8.96M) is about average for companies of similar size in the US market ($USD11.11M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ELAN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ELAN's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ELAN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Elanco Animal Health Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: Elanco Animal Health Incorporated
  • Ticker: ELAN
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$14.297b
  • Shares outstanding: 473.10m
  • Website: https://www.elanco.com

Number of Employees


Location

  • Elanco Animal Health Incorporated
  • 2500 Innovation Way
  • Greenfield
  • Indiana
  • 46140
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:07
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.