| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
ELAN Stock Overview
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals.
Rewards
Risk Analysis
No risks detected for ELAN from our risk checks.
Elanco Animal Health Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$30.22 |
| 52 Week High | US$37.49 |
| 52 Week Low | US$27.33 |
| Beta | 0.82 |
| 1 Month Change | -9.28% |
| 3 Month Change | -9.28% |
| 1 Year Change | -3.51% |
| 3 Year Change | -9.55% |
| 5 Year Change | n/a |
| Change since IPO | -16.06% |
Recent News & Updates
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...
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
| ELAN | US Pharmaceuticals | US 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
| ELAN volatility | |
|---|---|
| ELAN Average Weekly Movement | 3.1% |
| Pharmaceuticals Industry Average Movement | 9.3% |
| Market Average Movement | 5.9% |
| 10% most volatile stocks in US Market | 15.1% |
| 10% least volatile stocks in US Market | 2.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1954 | 10,200 | Jeff Simmons | https://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
| ELAN fundamental statistics | |
|---|---|
| Market Cap | US$14.30b |
| Earnings (TTM) | -US$698.10m |
| Revenue (TTM) | US$4.79b |
3.0x
P/S Ratio-20.5x
P/E RatioIs ELAN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ELAN income statement (TTM) | |
|---|---|
| Revenue | US$4.79b |
| Cost of Revenue | US$2.10b |
| Gross Profit | US$2.69b |
| Expenses | US$3.39b |
| Earnings | -US$698.10m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.48 |
| Gross Margin | 56.24% |
| Net Profit Margin | -14.57% |
| Debt/Equity Ratio | 82.8% |
How did ELAN perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/11/26 23:07 |
| End of Day Share Price | 2021/11/26 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.