Elanco Animal Health
Market Cap
US$8.5b
Last Updated
2020/07/04 23:51 UTC
Data Sources
Company Financials +
Executive Summary
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for companion and food animals.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and fair value.
Similar Companies
Share Price & News
How has Elanco Animal Health's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ELAN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.2%
ELAN
2.8%
US Pharmaceuticals
4.0%
US Market
1 Year Return
-38.0%
ELAN
0.9%
US Pharmaceuticals
4.9%
US Market
Return vs Industry: ELAN underperformed the US Pharmaceuticals industry which returned 0.9% over the past year.
Return vs Market: ELAN underperformed the US Market which returned 5% over the past year.
Shareholder returns
| ELAN | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 2.8% | 4.0% |
| 30 Day | -5.9% | -2.1% | 1.3% |
| 90 Day | 5.1% | 9.0% | 29.5% |
| 1 Year | -38.0%-38.0% | 3.6%0.9% | 7.2%4.9% |
| 3 Year | n/a | 23.8%14.7% | 36.1%27.2% |
| 5 Year | n/a | 27.8%13.0% | 65.3%46.9% |
Price Volatility Vs. Market
How volatile is Elanco Animal Health's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Are Elanco Animal Health's (NYSE:ELAN) Statutory Earnings A Good Reflection Of Its Earnings Potential?2 months ago | Simply Wall St
Elanco Animal Health Incorporated's (NYSE:ELAN) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?3 months ago | Simply Wall St
Is There An Opportunity With Elanco Animal Health Incorporated's (NYSE:ELAN) 48% Undervaluation?Valuation
Is Elanco Animal Health undervalued compared to its fair value and its price relative to the market?
39.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ELAN ($21.21) is trading below our estimate of fair value ($34.91)
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 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 (1.3x) compared to the US Pharmaceuticals industry average (3.3x).
Next Steps
Future Growth
How is Elanco Animal Health forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
53.7%
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 (2.2%).
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 (4% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: ELAN's revenue (4% 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 (6.9%).
Next Steps
Past Performance
How has Elanco Animal Health performed over the past 5 years?
62.6%
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, but has reduced losses over the past 5 years at a rate of 62.6% 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 (16.1%).
Return on Equity
High ROE: ELAN has a negative Return on Equity (-0.19%), as it is currently unprofitable.
Next Steps
Financial Health
How is Elanco Animal Health's financial position?
Financial Position Analysis
Short Term Liabilities: ELAN's short term assets ($3.1B) exceed its short term liabilities ($707.5M).
Long Term Liabilities: ELAN's short term assets ($3.1B) exceed its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: ELAN's debt to equity ratio (30.4%) is considered satisfactory.
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: Whilst unprofitable ELAN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: ELAN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 14.7% per year.
Next Steps
Dividend
What is Elanco Animal Health current dividend yield, its reliability and sustainability?
0.31%
Forecast Dividend Yield
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?
1.9yrs
Average management tenure
CEO
Jeff Simmons (53yo)
no data
Tenure
US$15,801,769
Compensation
Mr. Jeffrey N. Simmons, also known as Jeff, serves as President and Chief Executive Officer at Elanco Animal Health Incorporated and has been its Director since 2018. Mr. Simmons has served as the Senior ...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD15.80M) is above average for companies of similar size in the US market ($USD7.33M).
Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | US$15.80m | 0.062% $5.2m | |
| Executive VP & CFO | 1.67yrs | US$2.27m | 0.0039% $329.1k | |
| Executive Vice President of Human Resources | 1.5yrs | US$2.85m | 0.0083% $701.4k | |
| Executive Vice President of Innovation | 2yrs | US$2.83m | 0.0041% $344.3k | |
| Executive Vice President of Manufacturing & Quality | 2yrs | US$2.84m | 0.0047% $396.0k | |
| VP & Chief Accounting Officer | 1.83yrs | no data | 0.00049% $41.5k | |
| Senior VP & Chief Information Officer | no data | no data | no data | |
| Senior Vice President of Corporate Affairs & Administration | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Executive VP | 2yrs | no data | 0.0038% $323.2k |
1.9yrs
Average Tenure
52yo
Average Age
Experienced Management: ELAN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | US$15.80m | 0.062% $5.2m | |
| Independent Chairman of the Board | 2.17yrs | US$456.01k | 0.017% $1.4m | |
| Independent Director | 1.83yrs | US$356.01k | 0.0025% $212.4k | |
| Independent Director | 1.17yrs | US$254.06k | no data | |
| Independent Director | 1.33yrs | US$293.34k | no data | |
| Independent Director | 1.33yrs | US$306.68k | 0.0037% $310.5k | |
| Independent Director | 1.33yrs | US$293.34k | 0.00025% $21.2k | |
| Independent Director | 1.33yrs | US$293.34k | no data | |
| Director | 1.83yrs | US$328.34k | 0.0019% $159.1k | |
| Independent Director | 1.83yrs | US$358.00k | 0.00055% $46.5k |
1.6yrs
Average Tenure
61.5yo
Average Age
Experienced Board: ELAN's board of directors are not considered experienced ( 1.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.1%.
Top Shareholders
Company Information
Elanco Animal Health Incorporated's company bio, 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$8.461b
- Shares outstanding: 398.89m
- Website: https://www.elanco.com
Number of Employees
Location
- Elanco Animal Health Incorporated
- 2500 Innovation Way
- Greenfield
- Indiana
- 46140
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ELAN | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 2018 |
| 5EA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2018 |
Biography
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for companion and food animals. It offers companion animal disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks; companion animal therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines; 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. The company sells its products to third-party distributors; veterinarians; and food 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. The company has a research and development collaboration with AgBiome, Inc. to develop nutritional health products for swine; and strategic alliance with the Purdue University and Purdue Research Foundation. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 23:51 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.