Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

Key Information for Elanco Animal Health Investors

Today we're going to take a closer look at Mid-Cap Health Care company Elanco Animal Health, whose shares are currently trading at $16.44. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

a Lower P/B Ratio Than Its Sector Average but Its Shares Are Expensive:

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals worldwide. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 22.94 and an average price to book (P/B) ratio of 3.19. In contrast, Elanco Animal Health has a trailing 12 month P/E ratio of 18.7 and a P/B ratio of 1.28.

Elanco Animal Health has moved 26.4% over the last year compared to 18.6% for the S&P 500 — a difference of 7.7%. Elanco Animal Health has a 52 week high of $16.7 and a 52 week low of $8.02.

The Firm Has a Highly Leveraged Balance Sheet:

2019 2020 2021 2022 2023 2024
Revenue (M) $3,071 $3,271 $4,764 $4,411 $4,417 $4,439
Operating Margins 3% -21% -12% -2% -27% 11%
Net Margins 2% -18% -10% -2% -28% 8%
Net Income (M) $68 -$574 -$483 -$78 -$1,231 $338
Net Interest Expense (M) $79 $150 $236 $241 $277 $296
Depreciation & Amort. (M) $314 $517 $716 $682 $694 $73
Diluted Shares (M) 370 441 487 488 492 497
Earnings Per Share $0.18 -$1.3 -$0.99 -$0.16 -$2.5 $0.68
EPS Growth n/a -822.22% 23.85% 83.84% -1462.5% 127.2%
Avg. Price $30.08 $26.34 $32.11 $24.97 $14.9 $16.48
P/E Ratio 167.11 -20.26 -32.43 -156.06 -5.96 24.24
Free Cash Flow (M) $84 -$160 $324 $281 $131 $394
CAPEX (M) $140 $119 $159 $171 $140 $147
EV / EBITDA 33.28 -104.27 145.77 29.01 -25.52 21.43
Total Debt (M) $2,380 $6,682 $6,613 $6,224 $5,812 $4,365
Net Debt / EBITDA 5.22 -38.67 41.21 9.64 -10.9 6.95
Current Ratio 2.9 1.65 1.99 1.93 2.75 2.44

Elanco Animal Health has generally positive cash flows and an excellent current ratio of 2.44. Additionally, the company's financial statements display growing revenues and a flat capital expenditure trend and a strong EPS growth trend. However, the firm has a highly leveraged balance sheet. Finally, we note that Elanco Animal Health has weak operating margins with a positive growth rate.

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.

IN FOCUS