ELANElanco Animal Health demonstrates solid fundamental strengths with consistent revenue and improving profitability. The company operates in a stable sector, but current technical indicators suggest a period of consolidation. Thematic tailwinds are moderate, making it a sound 'Buy' for investors seeking stability and gradual growth.
Elanco operates in the animal health sector, which benefits from consistent demand and increasing pet ownership trends. While not as disruptive as tech, the focus on preventative care and sustainable farming practices provides steady thematic support.
Elanco exhibits strong revenue growth and has demonstrated improved profitability and net margins in the latest reporting periods. The company's balance sheet is robust, though debt levels have been managed down. Free cash flow generation is improving, supporting financial flexibility.
Elanco's stock is trading within its 52-week range, showing recent performance gains. However, several technical indicators suggest a potential for near-term consolidation or a slight pullback. Trading remains below key resistance levels.
| Factor | Score |
|---|---|
| Pet Care Trends | 80 |
| Food Security & Sustainability | 70 |
| Veterinary Innovation | 65 |
| Competitive Landscape | 75 |
| Regulatory Environment | 50 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 75 |
| Growth | 55 |
| Balance Sheet Health | 70 |
| Cash Flow | 75 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 60 |
| Volume Confirmation | 75 |
| Support & Resistance | 70 |
| Short-term Indicators | 50 |
Positive EPS Surprises
Elanco Animal Health Incorporated (ELAN) has shown a consistent trend of beating earnings per share (EPS) estimates. In the last four reported quarters, the company exceeded expectations by 19.35%, 10.08%, 24.69%, and 28.93% respectively, indicating strong operational execution and efficient cost management.
Improving Debt Position
The company has reduced its total debt from $5.77 billion in Q4 2023 to $4.32 billion in Q4 2024. Coupled with an increase in cash equivalents from $352 million to $468 million over the same period, this demonstrates a deleveraging trend and improved financial stability.
High Price-to-Sales Ratio
The Price-to-Sales (P/S) ratio for 2024 is 1.4, which is lower than the TTM P/S of 2.2. However, the P/S ratio has been declining from 3.0 in 2021 to 1.4 in 2024, indicating that the market is valuing each dollar of revenue less over time, potentially due to growth concerns or increased competition.
Inconsistent EPS Growth
While Elanco has beaten EPS estimates recently, the actual EPS figures show volatility. For instance, EPS was $0.14 in Q1 2025 (missing estimate by -6.87%) and -$0.08 in Q1 2024 (missing estimate by -24.53%). This inconsistency raises questions about the predictability of earnings.
August 2025
7
Next Earnings Date
H: $0.22
A: $0.20
L: $0.18
H: 1.20B
A: 1.19B
L: 1.18B
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals worldwide. It offers pet health products, such as parasiticides, vaccines, and therapeutics that protect pets from fleas, ticks, and internal parasites under the Seresto, K-9 Advantage, Advantix, and Advocate trademarks; prescription parasiticide products, an over-the-counter treatments for the prevention and elimination of fleas and ticks under the Credelio, Credelio Cat, Credelio Plus, Interceptor Plus, Doncit, Drontal, Drontal Plus, and Trifexis trademarks; vaccines portfolio that provides differentiated prevention coverage for a number of important pet health risks; and therapeutics portfolio for the treatment of pain, otitis, cardiovascular, and dermatology indications, as well as osteoarthritis for dogs and cats under the Galliprant trademark. The company also provides farm animal products that help farmers improve animal health and wellbeing, and raise livestock, such as cattle, swine, and poultry. In addition, it offers medicated feed additives, injectable antibiotics, vaccines, insecticides and enzymes, and others under the Rumensin, Baytril, and Experior trademarks for cattle; and under the Maxiban and Monteban trademarks for the control and prevention of intestinal disease in poultry. Further, the company offers other pet health products for cats and dogs under the Atopica, Milbemax, Onsior, and TruCan trademarks; and other farm animal products for poultry, cattle, and swine under the AviPro, Catosal, Denagard, Hemicell, Pulmotil, and Surmax tradmarks. It sells its products to third-party distributors and independent retailers; and directly to farm animal producers and veterinarians. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.
15.55 USD
The 39 analysts offering 1 year price forecasts for ELAN have a max estimate of 18.00 and a min estimate of 10.00.