NYSE:ELAN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.

Risks

  • Elanco Animal Health has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-10.0%

NYSE:ELAN

-1.4%

US Pharmaceuticals

-1.6%

US Market


1 Year Return

n/a

NYSE:ELAN

-8.4%

US Pharmaceuticals

-3.0%

US Market

No trading data on ELAN.

No trading data on ELAN.


Share holder returns

ELANIndustryMarket
7 Day-10.0%-1.4%-1.6%
30 Day-20.4%-4.4%-5.7%
90 Day-17.7%-5.7%0.2%
1 Yearn/a-6.2%-8.4%-0.8%-3.0%
3 Yearn/a8.3%0.9%38.1%29.1%
5 Yearn/a20.1%7.5%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Elanco Animal Health's share price is below the future cash flow value, and at a moderate discount (> 20%).

Elanco Animal Health's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Elanco Animal Health is overvalued based on earnings compared to the US Pharmaceuticals industry average.

Elanco Animal Health is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Elanco Animal Health is poor value based on expected growth next year.


Price Based on Value of Assets

Elanco Animal Health is good value based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is Elanco Animal Health expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

33.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Elanco Animal Health's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Elanco Animal Health's earnings are expected to grow significantly at over 20% yearly.

Elanco Animal Health's revenue growth is positive but not above the United States of America market average.

Elanco Animal Health's earnings growth is expected to exceed the United States of America market average.

Elanco Animal Health's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Elanco Animal Health is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

56.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Elanco Animal Health has delivered over 20% year on year earnings growth in the past 5 years.

Elanco Animal Health has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Elanco Animal Health has become profitable in the last year making it difficult to compare the US Pharmaceuticals industry average.


Return on Equity

Elanco Animal Health has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Elanco Animal Health used its assets less efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Elanco Animal Health improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Elanco Animal Health's financial position?


Financial Position Analysis

Elanco Animal Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Elanco Animal Health's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Elanco Animal Health's level of debt (45.8%) compared to net worth is high (greater than 40%).

Unable to establish if Elanco Animal Health's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (15%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

0.60%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Elanco Animal Health's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Elanco Animal Health's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Elanco Animal Health has not reported any payouts.

Unable to verify if Elanco Animal Health's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Elanco Animal Health has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Elanco Animal Health's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Elanco Animal Health's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Jeff Simmons (52yo)

0.0yrs

Tenure

US$5,379,245

Compensation

Mr. Jeffrey N. Simmons, also known as Jeff, serves as President, Chief Executive Officer and Director at Elanco Animal Health Incorporated. Mr. Simmons has served as the Senior Vice President at Eli Lilly ...


CEO Compensation Analysis

Jeff's remuneration is lower than average for companies of similar size in United States of America.

Jeff's compensation has increased in line with Elanco Animal Health recently becoming profitable.


Management Age and Tenure

0.9yrs

Average Tenure

49yo

Average Age

The average tenure for the Elanco Animal Health management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.4yrs

Average Tenure

60.5yo

Average Age

The average tenure for the Elanco Animal Health board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$251,02315 May 19
John Bilbrey
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,750
Max PriceUS$32.39
BuyUS$628,58614 Mar 19
Roy Hoover
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares20,000
Max PriceUS$31.43
BuyUS$5,40026 Sep 18
James Meer
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares225
Max PriceUS$24.00
BuyUS$480,00026 Sep 18
Sarena Lin
EntityIndividual
Role
Senior Key Executive
Executive VP of Elanco USA
Shares20,000
Max PriceUS$24.00
BuyUS$60,00026 Sep 18
David Kinard
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Human Resources
Shares2,500
Max PriceUS$24.00
BuyUS$528,00026 Sep 18
Jeffrey Simmons
EntityIndividual
Role
Chief Executive Officer
President
Shares22,000
Max PriceUS$24.00
BuyUS$12,00026 Sep 18
David Urbanek
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Manufacturing & Quality
Shares500
Max PriceUS$24.00
BuyUS$240,00026 Sep 18
Roy Hoover
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$24.00
BuyUS$28,80026 Sep 18
Kapila Anand
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,200
Max PriceUS$24.00
BuyUS$240,00026 Sep 18
Lawrence Kurzius
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$24.00
BuyUS$120,00026 Sep 18
Michael-Bryant Hicks
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares5,000
Max PriceUS$24.00
BuyUS$9,60026 Sep 18
Aaron Schacht
EntityIndividual
Shares400
Max PriceUS$24.00
BuyUS$24,00026 Sep 18
Ramiro Cabral
EntityIndividual
Shares1,000
Max PriceUS$24.00

Ownership Breakdown


Management Team

  • Jeff Simmons (52yo)

    President

    • Tenure: 0.0yrs
    • Compensation: US$5.38m
  • Sarena Lin (48yo)

    Executive VP of Elanco USA

    • Tenure: 0.6yrs
    • Compensation: US$2.86m
  • Todd Young (47yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
    • Compensation: US$680.65k
  • Michael-Bryant Hicks (44yo)

    Executive VP

    • Tenure: 1.1yrs
  • Jim Meer (49yo)

    VP & Chief Accounting Officer

    • Tenure: 0.9yrs
  • Julie Lawless

    Senior Vice President of Corporate Affairs & Administration

    • Tenure: 0.0yrs
  • Dave Kinard (52yo)

    Executive Vice President of Human Resources

    • Tenure: 0.0yrs
    • Compensation: US$1.55m
  • Dave Urbanek (53yo)

    Executive Vice President of Manufacturing & Quality

    • Tenure: 1.1yrs
    • Compensation: US$1.88m
  • Jim Greffet

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Chris Keeley

    Senior VP & Chief Information Officer

    • Tenure: 0.0yrs

Board Members

  • Dave Hoover (73yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$122.00k
  • Lawrence Kurzius (61yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$88.67k
  • Art Garcia (57yo)

    Director

    • Tenure: 0.3yrs
  • Denise Scots-Knight (60yo)

    Director

    • Tenure: 0.4yrs
  • J.P. Bilbrey (62yo)

    Director

    • Tenure: 0.4yrs
  • Jeff Simmons (52yo)

    President

    • Tenure: 0.0yrs
    • Compensation: US$5.38m
  • Deborah Kochevar (62yo)

    Director

    • Tenure: 0.4yrs
  • Kirk McDonald (52yo)

    Director

    • Tenure: 0.4yrs
  • Mike Harrington (56yo)

    Director

    • Tenure: 0.9yrs
  • Kapila Anand (65yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$89.34k

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$9.851b
  • Shares outstanding: 373.00m
  • 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, develops, manufactures, and markets products for companion and food animals. The company offers companion animal disease prevention products, su ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 01:03
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.