Skip to content

ELAN

NYSE
Weak · 25/100

Elanco Animal Health Inc

Health Care
Pharmaceuticals

$24.82

0.7%

Updated Today 12:11 PM ET

Report Card

ELAN at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Weak · 25/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 69.8% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$12.49B

P/E

Forward P/E (est.)

ROE

-3.6%

Revenue Growth

10.5%

EPS Growth

Profit Margin

-5.0%

FCF Yield

-3.7%

Debt / Equity

0.61x

ROIC

Interest Coverage

Current Ratio

2.16x

Dividend Yield

Implied Growth (rev. DCF)

6.6%

Rating Score

25/100

Business Overview
Research

Elanco Animal Health Inc (ELAN) is a large-cap company in the Pharmaceuticals industry, part of the Health Care sector of the S&P 500, with a market value around $12.49B.

In its latest reported year it generated about $4.71B in revenue and posted a net loss of $232.00M.

Our model rates ELAN Weak (25/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ELAN's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ELAN trades near $24.82, above its 50-day average ($23.17) and 200-day average ($22.91). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 56 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. ELAN's is $0.90 (~3.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month ELAN found buyers near $22.76 (support) and sellers near $25.29 (resistance); its 52-week range is $13.39–$27.72. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

-0.3%

2/2 checks passedRevenue growingRevenue growth beats sector midpoint

Revenue moved from $2.91B in 2016 to $4.71B in 2025, a 5.5% compound annual growth rate. The most recent year grew a steady 10.5% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
0/3 checks passedProfitableNet margin above sector midpointROE above 12%

Gross Margin

55.0%

Operating Margin

-3.7%

Net Margin

-4.9%

ROE

-3.6%

Elanco Animal Health Inc keeps about -5.0% of each sales dollar as net profit, with a 55.0% gross margin and -3.7% operating margin. Return on equity is -3.6%. The company is currently unprofitable on a net basis.

Debt Analysis
Research
3/3 checks passedDebt under 1× equityDebt under 2× equityShort-term bills covered

Total Debt

$3.74B

Net Debt

$3.31B

Net Debt / EBITDA

Debt / Equity

0.61x

Leverage: debt-to-equity is 0.6x, with a current ratio of 2.2x. That is a moderate, manageable debt load for most businesses. It carries roughly $3.74B of total debt against $428.00M of cash.

Cash Flow Analysis
Research
1/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$560.00M

Free Cash Flow

$284.00M

FCF Margin

6.0%

In the latest year Elanco Animal Health Inc produced about $560.00M of operating cash flow and $284.00M of free cash flow after capital spending. That is a free-cash-flow yield of about -3.7% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
0/1 checks passedTrading below DCF fair value

P/E

P/S

2.65x

P/B

1.72x

EV / EBITDA

ELAN trades at n/a trailing earnings, 2.6x sales, and 1.7x book value. Reverse-engineering today's price implies the market expects roughly 6.6% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$14.07

Current price

$24.82

-43% · Above fair-value estimate

Starting FCF (latest 10-K)

$284.00M

Growth, years 1–5

10.5%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$2.91B
PV of terminal value$4.12B
Estimated equity value$7.03B
Shares outstanding499M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where ELAN sits versus its Health Care sector peers in the S&P 500.

TTM P/E
Forward P/E
P/S ratio
2.6xFair
Revenue growth
10.5%Average
EPS growth
Gross margin
55.0%Average
Net margin
-5.0%Weak
ROE
-3.6%Weak

Bands show the middle half (25th–75th percentile) of the 53 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How ELAN stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.

In the Health Care sector (198 S&P 500 companies), ELAN ranks #51 of 198 by our overall rating.

P/E vs sector

median 25.5x

ROE vs sector

-3.6%

median 14.5%

Growth vs sector

10.5%

median 7.6%

Sector rank

#51

of 198 by rating

CompanyP/ERev Gr.Rating
ELANThis stock10.5%Weak· 25
HLN19x-1.8%Neutral· 48
GSK13.8x4.0%Favorable· 66
BMY19.9x1.8%Favorable· 60
AZN29x9.9%Favorable· 62
MRK35.7x2.9%Weak· 40
JNJ30.1x7.9%Neutral· 56
LLY45.5x47.4%Favorable· 69
Health Care median25.5x7.6%0/100

Valuation vs. quality map

sector medianHLNGSKBMYAZNMRKJNJLLYP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 198 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $24.82 today · expected CAGR -25%-17%

Metric20262027202820292030
Revenue$5.23B$5.81B$6.45B$7.16B$7.95B
Net income$157.01M$174.28M$193.45M$214.73M$238.35M
EPS$0.31$0.35$0.39$0.43$0.48
Share price (low)$3.77$4.19$4.65$5.16$5.73
Share price (high)$6.29$6.98$7.75$8.60$9.54
CAGR (low–high)-85% / -75%-59% / -47%-43% / -32%-32% / -23%-25% / -17%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for ELAN:

  • Revenue is growing 10.5% a year, a sign of real demand.
  • As an established S&P 500 member in Health Care, it brings scale and a long operating history.
Bear Case

The case against ELAN:

  • Thin net margins (-5.0%) leave little room for error.
  • Limited free cash flow at today's price.
  • Our model's overall read is Weak (25/100).
Key Risks
Research

Margin risk — thin profitability (-5.0%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: Elanco Animal Health Inc is a large-cap health care business still growing nicely, with modest profitability, and a sound balance sheet. It trades at n/a earnings, which our model scores Weak (25/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

ELAN — frequently asked questions

Is ELAN a good stock to buy?

We don't give buy or sell advice. Our model rates Elanco Animal Health Inc Weak (25/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is ELAN's rating on The Stocks School?

Elanco Animal Health Inc currently scores 25/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does ELAN's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Elanco Animal Health Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for ELAN calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this ELAN analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ELAN. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.