Elanco Animal Health Inc (ELAN) Stock Analysis
Verdict: HOLD
Innovation-led growth and recent screwworm EUA create a fundamental floor, but high debt leverage remains the primary valuation ceiling.
Investment score: 64/100
Analysis as of
Is Elanco Animal Health Inc stock worth reviewing? The TradeMates thesis
Elanco is at a fundamental turning point with a 10% organic revenue growth rate and a string of regulatory wins (Zenrelia, Credelio Quattro, CLiK Extra). While the current net margin is -3.96%, forward estimates suggest a swing to profitability ($1.23 EPS by 2027), making the recent sell-off on high volume a potential overreaction.
7-factor investment score
- Valuation: 60/100 (weight 20%)
- Financial Health: 50/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 75/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Elanco Animal Health Inc opportunities and risks
What speaks for ELAN
- Product Innovation Blockbusters
What speaks against ELAN
- High Debt-to-Equity Leverage
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ELAN | n/a | 2.2x | 18.7x | 52.6% | -4.0% | 3.1% |
| ZTS | 12.0x | 3.2x | 7.5x | 70.9% | 27.5% | 8.7% |
| VTRS | n/a | 1.3x | 12.0x | 34.8% | -2.8% | 11.6% |
| CORT | 213.0x | 14.4x | 412.4x | 98.3% | 6.6% | 0.9% |
| AXSM | n/a | 14.1x | n/a | 93.2% | -24.7% | -0.6% |
| CRNX | n/a | 211.4x | n/a | 99.2% | -1189.9% | -4.8% |
| Peer median | n/a | 14.1x | 7.5x | 93.2% | -2.8% | 0.9% |
Frequently asked questions about Elanco Animal Health Inc (ELAN)
Is ELAN stock a good investment?
The TradeMates model rates Elanco Animal Health Inc as HOLD with an investment score of 64/100. Elanco is at a fundamental turning point with a 10% organic revenue growth rate and a string of regulatory wins (Zenrelia, Credelio Quattro, CLiK Extra). While the current net margin is -3.96%, forward estimates suggest a swing to profitability ($1.23 EPS by 2027), making the recent sell-off on high volume a potential overreaction. This is algorithmic model output, not personal investment advice.
Is ELAN stock a buy?
The TradeMates model verdict for ELAN is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.