ELAN Investors, You Need to Know These Facts Today.

Now trading at a price of $12.72, Elanco Animal Health has moved 0.1% so far today.

Over the last year, Elanco Animal Health logged a -2.8% change, with its stock price reaching a high of $14.69 and a low of $7.88. Over the same period, the stock underperformed the S&P 500 index by -17.8%. As of April 2023, the company's 50-day average price was $10.58. Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. Based in Greenfield, IN, the mid-cap Health Care company has 9,000 full time employees. Elanco Animal Health has not offered a dividend during the last year.

Increasing Revenues but Narrowing Margins:

2018 2019 2020 2021 2022 2023
Revenue (MM) $3,067 $3,071 $3,271 $4,764 $4,411 $4,411
Revenue Growth n/a 0.14% 6.51% 45.64% -7.41% 0.0%
Operating Margins 4% 3% -21% -12% -2% -26%
Net Margins 3% 2% -18% -10% -2% -26%
Net Income (MM) $86 $68 -$574 -$483 -$78 -$1,144
Net Interest Expense (MM) $30 $79 $178 $236 $241 $272
Depreciation & Amort. (MM) $296 $314 $517 $716 $682 $691
Earnings Per Share $0.28 $0.18 -$1.3 -$0.99 -$0.16 -$2.3200000000000003
Free Cash Flow (MM) $353 $84 -$160 $357 $315 -$11
Capital Expenditures (MM) $134 $140 $119 $126 $137 $138
Current Ratio 2.58 2.9 1.65 1.99 1.93 2.82
Total Debt (MM) $2,608 $2,355 $6,127 $6,319 $5,836 $5,909

Elanco Animal Health has consistently negative margins with a negative growth trend, declining EPS growth, and irregular cash flows. On the other hand, the company has growing revenues and a flat capital expenditure trend working in its favor. Furthermore, Elanco Animal Health has an average amount of debt.

Elanco Animal Health does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $0.89, the company has a forward P/E ratio of 11.9. In comparison, the average P/E ratio for the Health Care sector is 30.21. On the other hand, the market is undervaluing Elanco Animal Health in terms of its equity because its P/B ratio is 1.02. In comparison, the sector average is 4.08.

There's an Analyst Consensus of Some Upside Potential for Elanco Animal Health:

The 8 analysts following Elanco Animal Health have set target prices ranging from $10.0 to $18.0 per share, for an average of $13.75 with a hold rating. As of April 2023, the company is trading -23.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Elanco Animal Health has an average amount of shares sold short because 3.6% of the company's shares are sold short. Institutions own 101.4% of the company's shares, and the insider ownership rate stands at 0.57%, suggesting a small amount of insider investors. The largest shareholder is Dodge & Cox Inc, whose 17% stake in the company is worth $1,071,487,024.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.