ELAN Stock Analysis: Elanco Animal Health | NYSE
Drug Manufacturers - Specialty & Generic | NYSE, USA | Market Cap: 11.767m USD | 12M Return: 37.3% | US28414H1032 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 176M
EPS Trend: 54.0%
Qual. Beats: 2
Rev. Trend: 86.3%
Qual. Beats: 6
Warnings
Tailwinds
Seasonality 7.9 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Elanco Animal Health Incorporated (NYSE: ELAN), founded in 1954 and headquartered in Indianapolis, Indiana, is a global animal health company that develops, manufactures, and markets products for both pets and farm animals. The business operates as a pure-play in the animal pharmaceuticals and health products industry, serving veterinarians, pet owners, and livestock producers through third-party distributors and direct sales channels.
The companys pet health portfolio includes parasiticides, vaccines, and therapeutics for dogs and cats sold under well-known brands such as Seresto, K-9 Advantage, Advantix, Advocate, Credelio, Interceptor Plus, Drontal, and Galliprant. The pet segment typically benefits from long-term tailwinds such as rising pet ownership and increasing willingness of owners to spend on preventive and therapeutic care.
Elancos farm animal segment provides medicated feed additives, injectable antibiotics, vaccines, insecticides, and enzymes for cattle, swine, and poultry under brands including Rumensin, Baytril, Experior, Maxiban, and Monteban, along with additional products under the AviPro, Denagard, Hemicell, and Pulmotil names. This livestock-focused side of the business is generally tied to global protein demand and producer economics, making it more cyclical than the companion animal side.
Elanco completed its IPO on September 20, 2018, and is classified within the Health Care sector under pharmaceuticals. Its distribution model relies on selling to third-party distributors, independent retailers, veterinarians, and directly to farm animal producers rather than to end consumers.
- Credelio and Seresto parasiticide sales drive companion animal revenue growth
- Livestock segment margins pressured by cattle and poultry commodity cycles
- Debt reduction from Bayer acquisition weighs on free cash flow conversion
- Competition from Zoetis pressures pricing across key therapeutic franchises
| Net Income: -199.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.21 > 1.0 |
| NWC/Revenue: 38.75% < 20% (prev 49.55%; Δ -10.81% < -1%) |
| CFO/TA 0.05 > 3% & CFO 617.0m > Net Income -199.0m |
| Net Debt (3.39b) to EBITDA (774.0m): 4.38 < 3 |
| Current Ratio: 2.05 > 1.5 & < 3 |
| Outstanding Shares: last quarter (505.9m) vs 12m ago 1.16% < -2% |
| Gross Margin: 52.59% > 18% (prev 42.98%; Δ 9.61% > 0.5%) |
| Asset Turnover: 36.77% > 50% (prev 32.63%; Δ 4.14% > 0%) |
| Interest Coverage Ratio: 0.31 > 6 (EBIT TTM 81.0m / Interest Expense TTM 259.0m) |
| A: 0.14 (Total Current Assets 3.80b - Total Current Liabilities 1.85b) / Total Assets 13.6b |
| B: -0.15 (Retained Earnings -2.07b / Total Assets 13.6b) |
| C: 0.01 (EBIT TTM 81.0m / Avg Total Assets 13.7b) |
| D: 0.94 (Book Value of Equity 6.59b / Total Liabilities 6.97b) |
| Altman-Z'' = 1.47 = BB |
| DSRI: 0.93 (Receivables 1.15b/1.10b, Revenue 5.02b/4.48b) |
| GMI: 0.82 (GM 42.98% / 52.59%) |
| AQI: 0.97 (AQ_t 0.62 / AQ_t-1 0.64) |
| SGI: 1.12 (Revenue 5.02b / 4.48b) |
| TATA: -0.06 (NI -199.0m - CFO 617.0m) / TA 13.6b) |
| Beneish M = -3.19 (Cap -4..+1) = AA |
As of August 25, 2026, the stock is trading at USD 24.42 with a total of 3,952,064 shares traded. Over the past week, the price has changed by +3.43%, over one month by -1.97%, over three months by +7.01% and over the past year by +37.27%.
Current recommended Stop Loss: 23.20 (which is 5% or 1.2 ATR below the current price).
Elanco Animal Health has received a consensus analysts rating of 3.87. Therefore, it is recommended to buy ELAN.
- StrongBuy: 6
- Buy: 1
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 31.2 | 27.8% |
P/E Forward = 22.2717
P/S = 2.344
P/B = 1.858
P/EG = 4.0421
Revenue TTM = 5.02b USD
EBIT TTM = 81.0m USD
EBITDA TTM = 774.0m USD
Long Term Debt = 3.85b USD (from longTermDebt, last quarter)
Short Term Debt = 73.0m USD (from shortTermDebt, last quarter)
Debt = 3.92b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.39b USD (calculated: Debt 3.92b - CCE 530.0m)
Enterprise Value = 15.2b USD (11.8b + Debt 3.92b - CCE 530.0m)
Interest Coverage Ratio = 0.31 (Ebit TTM 81.0m / Interest Expense TTM 259.0m)
EV/FCF = 39.99x (Enterprise Value 15.2b / FCF TTM 379.0m)
FCF Yield = 2.50% (FCF TTM 379.0m / Enterprise Value 15.2b)
FCF Margin = 7.55% (FCF TTM 379.0m / Revenue TTM 5.02b)
Net Margin = -3.96% (Net Income TTM -199.0m / Revenue TTM 5.02b)
Gross Margin = 52.59% ((Revenue TTM 5.02b - Cost of Revenue TTM 2.38b) / Revenue TTM)
Gross Margin QoQ = 58.33% (prev 57.26%)
Tobins Q-Ratio = 1.12 (Enterprise Value 15.2b / Total Assets 13.6b)
Interest Expense / Debt = 6.61% (Interest Expense 259.0m / Debt 3.92b)
Taxrate = 3.57% (2.00m / 56.0m)
NOPAT = 78.1m (EBIT 81.0m * (1 - 3.57%))
Current Ratio = 2.05 (Total Current Assets 3.80b / Total Current Liabilities 1.85b)
Debt / Equity = 0.59 (Debt 3.92b / totalStockholderEquity, last quarter 6.59b)
Debt / EBITDA = 4.38 (Net Debt 3.39b / EBITDA 774.0m)
Debt / FCF = 8.94 (Net Debt 3.39b / FCF TTM 379.0m)
Total Stockholder Equity = 6.60b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.46% (Net Income -199.0m / Total Assets 13.6b)
RoE = -3.02% (Net Income TTM -199.0m / Total Stockholder Equity 6.60b)
RoCE = 0.78% (EBIT 81.0m / Capital Employed (Equity 6.60b + L.T.Debt 3.85b))
RoIC = 0.68% (NOPAT 78.1m / Invested Capital 11.5b)
WACC = 9.81% (E(11.8b)/V(15.7b) * Re(10.96%) + D(3.92b)/V(15.7b) * Rd(6.61%) * (1-Tc(0.04)))
Discount Rate = 10.96% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 76.28 | Cagr: 0.88%
[DCF] Terminal Value 71.45% ; FCFF base≈369.4m ; Y1≈391.7m ; Y5≈462.7m
[DCF] Fair Price = 4.60 (EV 5.68b - Net Debt 3.39b = Equity 2.30b / Shares 499.4m; r=9.81% [WACC]; 5y FCF grow 6.76% → 2.50% )
EPS Correlation: 54.05 | EPS CAGR: 4.89% | SUE: 2.33 | # QB: 2
Revenue Correlation: 86.35 | Revenue CAGR: 4.45% | SUE: 1.80 | # QB: 6
EPS current Quarter (2026-09-30): EPS=0.20 | Chg30d=+4.06% | Revisions=+42% | Analysts=13
EPS current Year (2026-12-31): EPS=1.13 | Chg30d=+5.78% | Revisions=+64% | GrowthEPS=+19.9% | GrowthRev=+8.6%
EPS next Year (2027-12-31): EPS=1.26 | Chg30d=+5.63% | Revisions=+77% | GrowthEPS=+12.1% | GrowthRev=+5.3%
[Analyst] Revisions Ratio: +73% (up=27, down=3)