NYSE:ELAN

Stock Analysis Report

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Executive Summary

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


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

ELANIndustryMarket
7 Day0.2%2.8%4.0%
30 Day-5.9%-2.1%1.3%
90 Day5.1%9.0%29.5%
1 Year-38.0%-38.0%3.6%0.9%7.2%4.9%
3 Yearn/a23.8%14.7%36.1%27.2%
5 Yearn/a27.8%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

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

NamePositionTenureCompensationOwnership
Jeffrey Simmons
Presidentno dataUS$15.80m0.062% $5.2m
Todd Young
Executive VP & CFO1.67yrsUS$2.27m0.0039% $329.1k
David Kinard
Executive Vice President of Human Resources1.5yrsUS$2.85m0.0083% $701.4k
Aaron Schacht
Executive Vice President of Innovation2yrsUS$2.83m0.0041% $344.3k
David Urbanek
Executive Vice President of Manufacturing & Quality2yrsUS$2.84m0.0047% $396.0k
James Meer
VP & Chief Accounting Officer1.83yrsno data0.00049% $41.5k
Chris Keeley
Senior VP & Chief Information Officerno datano datano data
Julie Lawless
Senior Vice President of Corporate Affairs & Administrationno datano datano data
Jim Greffet
Head of Investor Relationsno datano datano data
Michael-Bryant Hicks
Executive VP2yrsno data0.0038% $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

NamePositionTenureCompensationOwnership
Jeffrey Simmons
Presidentno dataUS$15.80m0.062% $5.2m
Roy Hoover
Independent Chairman of the Board2.17yrsUS$456.01k0.017% $1.4m
Lawrence Kurzius
Independent Director1.83yrsUS$356.01k0.0025% $212.4k
Art Garcia
Independent Director1.17yrsUS$254.06kno data
Denise Scots-Knight
Independent Director1.33yrsUS$293.34kno data
John Bilbrey
Independent Director1.33yrsUS$306.68k0.0037% $310.5k
Deborah Kochevar
Independent Director1.33yrsUS$293.34k0.00025% $21.2k
Kirk McDonald
Independent Director1.33yrsUS$293.34kno data
Michael Harrington
Director1.83yrsUS$328.34k0.0019% $159.1k
Kapila Anand
Independent Director1.83yrsUS$358.00k0.00055% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELANNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2018
5EADB (Deutsche Boerse AG)YesCommon StockDEEURSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:51
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.