Intrinsiqq
Elanco Animal Health Incorporated logoElanco Animal Health IncorporatedELAN
$23.55+0.04%
Elanco Animal Health Incorporated logo

Elanco Animal Health Incorporated

ELAN

$23.55

+$0.01 (+0.04%)

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ProfitabilitySolid marginsGrowthSteady growthCash FlowHealthy conversionValuationN/A
What stands out

16.86% operating margin is respectable but not wide. ROIC at 7.39%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.

What's changing

Revenue grew 6.2%, steady but not accelerating. Free cash flow declined 28% despite revenue growth, conversion is weakening.

What deserves caution

Free cash flow declined 28% versus the prior year, cash generation momentum has weakened. Net debt of $3.67B represents 12.9x FCF, leverage limits flexibility.

Price History

+14.8%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$11.77B
EPS-$0.40
P/E-58.87
P/FCF31.05
EV/EBITDA9.62
FCF Yield3.2%
Div. Yield—
Net Debt/FCF9.1x
52-Week Range
$19.80$26.84

Profitability & Returns

Revenue (TTM)

$5.02B

▲ +6.2% YoY

Net Income (TTM)

-$199M

▼ -168.6% YoY

Op. Margin

17.71%

▲ +5.9pp YoY

ROIC

8.01%

▲ +4.4pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$379M

▼ -27.9% YoY

Op. Cash Flow (TTM)

$617M

▲ +3.5% YoY

Net Debt

$3.46B

Cash & Equiv.

$530M

5Y CAGR: +7.6%

Continue Research

SourceComputed from the 10-Q filed 3 Aug 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 19 Sept 2026. How this is calculated.

Price from market data, last close as of 16 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Elanco Animal Health (ELAN) overvalued?

Elanco Animal Health (ELAN) trades above a two-stage DCF intrinsic value of about $7.12 per share, so at $23.55 the stock looks overvalued (69.8% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Elanco Animal Health scores 46/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Elanco Animal Health's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $7.12 per share for ELAN, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $5.34. At today's $23.55, that puts the stock about 69.8% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Elanco Animal Health a high-quality business?+

Elanco Animal Health scores 46 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 17.7% operating margin and a 8.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is Elanco Animal Health a good stock to buy right now?+

That depends on valuation and quality together, not either alone. ELAN currently trades above its estimated intrinsic value and scores 46/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Pharmaceutical Preparations

Spot a number that looks wrong?

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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