Elanco Animal Health Incorporated
Elanco Animal Health Incorporated Fundamental Analysis
Elanco Animal Health Incorporated (ELAN) shows moderate financial fundamentals with a PE ratio of -48.85, profit margin of -4.92%, and ROE of -3.51%. The company generates $4.7B in annual revenue with moderate year-over-year growth of 6.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ELAN's fundamental strength across five key dimensions:
Efficiency Score
WeakELAN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentELAN trades at attractive valuation levels.
Growth Score
ModerateELAN shows steady but slowing expansion.
Financial Health Score
ExcellentELAN maintains a strong and stable balance sheet.
Profitability Score
WeakELAN struggles to sustain strong margins.
Key Financial Metrics
Is ELAN Expensive or Cheap?
P/E Ratio
ELAN trades at -48.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ELAN's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Elanco Animal Health Incorporated at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.90 times EBITDA. This signals the market has high growth expectations.
How Well Does ELAN Make Money?
Net Profit Margin
For every $100 in sales, Elanco Animal Health Incorporated keeps $-4.92 as profit after all expenses.
Operating Margin
Core operations generate 5.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.51 in profit for every $100 of shareholder equity.
ROA
Elanco Animal Health Incorporated generates $-1.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Elanco Animal Health Incorporated produces operating cash flow of $560.30M, showing steady but balanced cash generation.
Free Cash Flow
Elanco Animal Health Incorporated produces free cash flow of $284.15M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.57 in free cash annually.
FCF Yield
ELAN converts 2.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-48.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ELAN Stacks Against Its Sector Peers
| Metric | ELAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -48.85 | 28.25 | Better (Cheaper) |
| ROE | -3.51% | 780.00% | Weak |
| Net Margin | -4.92% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.61 | 0.30 | Weak (High Leverage) |
| Current Ratio | 2.17 | 4.66 | Strong Liquidity |
| ROA | -1.74% | -14687.00% (disorted) | Weak |
ELAN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Elanco Animal Health Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.08%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
63.17%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
1314.52%
Industry Style: Defensive, Growth, Innovation
High Growth