Elanco Animal Health Inc

Health Care
Biotechnology: Pharmaceutical Preparations
www.elanco.com

Earnings Score
Moat Score
Safety Score

Market Cap $6.41B
PE 31
Debt $4.40B
Cash $490.00M
EV $10.32B
FCF $380.00M

Earnings

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Sales & Net Margins

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Earnings	$205.00M
EBIT	$412.00M
ROE	3%
ROA	3%
FCF	$380.00M
Equity	$6.52B
Growth Stability	1
PE	31.26
PB	0.98
P/FCF	16.86
P/S	1.44
Price/Cash	0.08
Debt/Equity	0.67
Debt/FCF	11.58
Net Margins	10%
Gross Margins	55%
Op. Margins	9%
Earnings CAGR	1%
Sales Growth YoY	-4%
Sales Growth QoQ	-13%
Sales CAGR	8%
FCF CAGR	6%
Equity CAGR	0%
Earnings Stability	-0.22
Earnings Growth YoY	-133%
Earnings Growth QoQ	-828%

Sales CAGR 5Y	9%
FCF CAGR 5Y	16%
Equity CAGR 5Y	-3%
Earnings CAGR 3Y	-3%
Sales CAGR 3Y	-3%
FCF CAGR 3Y	-6%
Equity CAGR 3Y	-8%
Market Cap	$6.41B
Revenue	$4.45B
Assets	$13.28B
Total Debt	$4.40B
Cash	$490.00M
Shares Outstanding	493.9M
EV	10.32B
Earnings Score	6%
Moat Score	50%
Safety Score	76%
Final Score	44%
Working Capital	2.05B
Current Ratio	2.55
Gross Profit	$2.44B
Shares Growth 3y	2%
Equity Growth QoQ	10%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Elanco Animal Health Inc is an animal health company that is engaged in innovating, developing, manufacturing, and marketing products for companion and food animals. Geographically, the company's operations are conducted globally and sell its products in over 90 countries. It offers a range of food animal products used in cattle, sheep, goats, and swine production.

SEC Filings

Direct access to Elanco Animal Health Inc (ELAN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Elanco Animal Health Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Elanco Animal Health Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability -22%

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Elanco Animal Health Inc Discounted Cash Flow

Fully customizable DCF calculator online for Elanco Animal Health Inc.

Years

Calculation mode

= $5.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$380M	$401M	$424M	$448M	$473M	$500M	$528M	$558M	$590M	$623M	$658M	$6.6B
DCF		$365M	$350M	$337M	$323M	$310M	$298M	$286M	$275M	$264M	$254M	$2.5B
Value	$5.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-2%	-11%	3%	2%	-17%	-10%	-2%	-28%	10%
ROA	-	-3%	1%	1%	-4%	-3%	-0%	-8%	3%
ROE	-	-4%	2%	1%	-7%	-6%	-1%	-20%	3%

Good Net Margins (10.12%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0	7.09	28.43	-38.6	18.75	19.96	44.75	11.58
Debt over Equity	-	0	0.48	0.43	0.8	0.89	0.86	0.94	0.67
Growth Stability	-	-	-	-	-	-	-	-	1

Bad Debt/FCF ratio (11.58)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.67)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-1%	6%	0%	7%	46%	-7%	0%	9%
Earnings YoY growth	-	549%	-128%	-22%	-925%	-16%	-83%	1K%	-
Equity YoY growth	-	11%	-33%	7%	53%	-11%	-3%	-15%	-3%
FCF YoY growth	-	65%	369%	-76%	-310%	-303%	-12%	-58%	16%