(ELAN) Elanco Animal Health - Overview
Sector: Healthcare | Industry: Drug Manufacturers - Specialty & Generic | Exchange: NYSE (USA) | Market Cap: 11.912m USD | Total Return: 76.4% in 12m
Avg Turnover: 160M
EPS Trend: 9.2%
Qual. Beats: 1
Rev. Trend: 85.1%
Qual. Beats: 5
Warnings
Altman Z'' 0.29 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Elanco Animal Health (ELAN) is a global provider of health products for pets and livestock, operating in the animal health sector-an industry characterized by high barriers to entry due to stringent regulatory requirements and long R&D cycles. The company’s portfolio includes parasiticides, vaccines, and therapeutics marketed under brands such as Seresto, Credelio, and Galliprant. For the farm animal segment, Elanco produces medicated feed additives and antibiotics designed to improve livestock productivity and welfare.
The business model relies on a multi-channel distribution strategy, selling through third-party distributors, independent retailers, and directly to veterinarians and agricultural producers. Unlike human pharmaceuticals, animal health companies often benefit from lower generic competition and more direct-to-consumer brand loyalty in the pet segment. Investors can evaluate the company’s valuation metrics and growth trajectory further on ValueRay.
Headquartered in Indianapolis and founded in 1954, Elanco maintains a global footprint with diversified revenue streams across species and geographic regions. The company focuses on product innovation to address chronic conditions in pets and efficiency challenges in the global food supply chain.
- New blockbuster product launches drive high-margin revenue growth in pet therapeutics
- Innovation pipeline execution determines long-term competitiveness against established animal health peers
- Input cost fluctuations and manufacturing efficiencies impact consolidated EBITDA margins
- Global livestock demand and protein consumption patterns dictate farm animal segment performance
- High debt leverage and interest expense levels constrain free cash flow allocation options
| Net Income: -242.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -0.25 > 1.0 |
| NWC/Revenue: 39.28% < 20% (prev 49.04%; Δ -9.76% < -1%) |
| CFO/TA 0.04 > 3% & CFO 577.0m > Net Income -242.0m |
| Net Debt (3.56b) to EBITDA (1.13b): 3.16 < 3 |
| Current Ratio: 2.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (506.0m) vs 12m ago 1.38% < -2% |
| Gross Margin: 49.44% > 18% (prev 0.43%; Δ 4.90k% > 0.5%) |
| Asset Turnover: 37.40% > 50% (prev 34.21%; Δ 3.19% > 0%) |
| Interest Coverage Ratio: 1.62 > 6 (EBITDA TTM 1.13b / Interest Expense TTM 270.0m) |
| A: 0.15 (Total Current Assets 3.58b - Total Current Liabilities 1.66b) / Total Assets 13.2b |
| B: -0.16 (Retained Earnings -2.12b / Total Assets 13.2b) |
| C: 0.03 (EBIT TTM 438.0m / Avg Total Assets 13.1b) |
| D: -0.35 (Book Value of Equity -2.36b / Total Liabilities 6.72b) |
| Altman-Z'' = 0.29 = B |
| DSRI: 0.98 (Receivables 1.15b/1.06b, Revenue 4.89b/4.43b) |
| GMI: 0.87 (GM 49.44% / 43.10%) |
| AQI: 0.95 (AQ_t 0.62 / AQ_t-1 0.65) |
| SGI: 1.11 (Revenue 4.89b / 4.43b) |
| TATA: -0.06 (NI -242.0m - CFO 577.0m) / TA 13.2b) |
| Beneish M = -3.17 (Cap -4..+1) = AA |
As of June 02, 2026, the stock is trading at USD 23.67 with a total of 4,453,264 shares traded.
Over the past week, the price has changed by +8.93%,
over one month by +5.15%,
over three months by -9.28% and
over the past year by +76.38%.
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 | 29.8 | 25.9% |
P/E Forward = 19.084
P/S = 2.4345
P/B = 1.8326
P/EG = 4.0421
Revenue TTM = 4.89b USD
EBIT TTM = 438.0m USD
EBITDA TTM = 1.13b USD
Long Term Debt = 3.92b USD (from longTermDebt, last quarter)
Short Term Debt = 73.0m USD (from shortTermDebt, last quarter)
Debt = 3.99b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.56b USD (calculated: Debt 3.99b - CCE 428.0m)
Enterprise Value = 15.5b USD (11.9b + Debt 3.99b - CCE 428.0m)
Interest Coverage Ratio = 1.62 (Ebit TTM 438.0m / Interest Expense TTM 270.0m)
EV/FCF = 49.13x (Enterprise Value 15.5b / FCF TTM 315.0m)
FCF Yield = 2.04% (FCF TTM 315.0m / Enterprise Value 15.5b)
FCF Margin = 6.44% (FCF TTM 315.0m / Revenue TTM 4.89b)
Net Margin = -4.95% (Net Income TTM -242.0m / Revenue TTM 4.89b)
Gross Margin = 49.44% ((Revenue TTM 4.89b - Cost of Revenue TTM 2.47b) / Revenue TTM)
Gross Margin QoQ = 57.26% (prev 39.34%)
Tobins Q-Ratio = 1.17 (Enterprise Value 15.5b / Total Assets 13.2b)
Interest Expense / Debt = 6.77% (Interest Expense 270.0m / Debt 3.99b)
Taxrate = 34.48% (30.0m / 87.0m)
NOPAT = 287.0m (EBIT 438.0m * (1 - 34.48%))
Current Ratio = 2.16 (Total Current Assets 3.58b / Total Current Liabilities 1.66b)
Debt / Equity = 0.61 (Debt 3.99b / totalStockholderEquity, last quarter 6.50b)
Debt / EBITDA = 3.16 (Net Debt 3.56b / EBITDA 1.13b)
Debt / FCF = 11.31 (Net Debt 3.56b / FCF TTM 315.0m)
Total Stockholder Equity = 6.64b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.85% (Net Income -242.0m / Total Assets 13.2b)
RoE = -2.76% (Net Income TTM -242.0m / Total Stockholder Equity 8.77b)
RoCE = 3.45% (EBIT 438.0m / Capital Employed (Equity 8.77b + L.T.Debt 3.92b))
RoIC = 2.47% (NOPAT 287.0m / Invested Capital 11.6b)
WACC = 9.60% (E(11.9b)/V(15.9b) * Re(11.33%) + D(3.99b)/V(15.9b) * Rd(6.77%) * (1-Tc(0.34)))
Discount Rate = 11.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 60.0 | Cagr: 1.18%
[DCF] Terminal Value 69.95% ; FCFF base≈325.4m ; Y1≈305.8m ; Y5≈283.9m
[DCF] Fair Price = 0.29 (EV 3.71b - Net Debt 3.56b = Equity 142.4m / Shares 499.4m; r=9.60% [WACC]; 5y FCF grow -7.62% → 2.50% )
EPS Correlation: 9.22 | EPS CAGR: 0.76% | SUE: 1.93 | # QB: 1
Revenue Correlation: 85.11 | Revenue CAGR: 3.40% | SUE: 4.0 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.27 | Chg30d=-7.54% | Revisions=-57% | Analysts=12
EPS next Quarter (2026-09-30): EPS=0.19 | Chg30d=-0.87% | Revisions=-20% | Analysts=11
EPS current Year (2026-12-31): EPS=1.08 | Chg30d=+4.88% | Revisions=+65% | GrowthEPS=+15.3% | GrowthRev=+7.1%
EPS next Year (2027-12-31): EPS=1.21 | Chg30d=+3.98% | Revisions=+57% | GrowthEPS=+11.9% | GrowthRev=+5.3%
[Analyst] Revisions Ratio: +65%