A Business at a Glance
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Elanco Animal Health Inc
ELAN
$12.3B
Mkt Cap
$24.91
+0.52%
Elanco Animal Health Inc (ELAN) has a 5-year average return on invested capital (ROIC) of -0.4%. This is below average and may indicate limited pricing power.
Elanco Animal Health Inc (ELAN) has a market capitalization of $12.4B. It is classified as a large-cap stock.
Elanco Animal Health Inc (ELAN) does not currently pay a regular dividend.
Elanco Animal Health Inc (ELAN) operates in the Pharmaceutical Preparations industry, within the Healthcare sector.
Elanco Animal Health Inc (ELAN) reported annual revenue of $4.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Elanco Animal Health Inc (ELAN) has a net profit margin of -4.9%. The company is currently unprofitable.
Elanco Animal Health Inc (ELAN) generated $284 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Elanco Animal Health is a global leader in animal health with a diverse portfolio of products marketed under approximately 200 brands, serving animals across pet health (dogs and cats) and farm animal species (cattle, poultry, swine, and sheep) in more than 90 countries. The company operates as a single segment with a comprehensive product portfolio spanning parasiticides, dermatology, vaccines, and pain therapeutics for pets, alongside health and productivity solutions for livestock producers. Elanco's business model combines prescription and over-the-counter products distributed through veterinarians, retailers, and direct-to-consumer channels, with the U.S. representing 47% of total revenue and Brazil, the United Kingdom, and China serving as major international markets. The company's competitive positioning is built on a diverse, durable product portfolio with established customer relationships, deep market access, and a focus on innovation-driven growth supported by its three-pronged strategy of Innovation, Portfolio, and Productivity. Unit economics reflect a mix of transactional and recurring revenue streams, with the company investing significantly in launches of new products while pursuing geographic and channel expansion to reach more of the world's animals.
【Innovation-driven growth acceleration】 Management expects continued momentum from its Big Six innovation products, which are projected to double in revenue from 2025 to 2028 on top of a stabilizing base, with five to six blockbuster potential approvals expected through 2031. The company anticipates meaningful gross margin expansion beginning in 2026 through the Elanco Ascend productivity initiative, which targets general and administrative cost savings and manufacturing efficiencies, while simultaneously investing in global launches of innovation products. Pricing is expected to accelerate in 2026 from 2025 levels, reflecting the enhanced value of the company's latest innovation and comprehensive portfolio, with management implementing its largest price increase in five years to U.S. veterinary clinics. The company remains focused on deleveraging toward a long-term target of 2x–2.5x net leverage, with a path to sub-3x leverage expected in 2027, while maintaining a balanced capital allocation strategy prioritizing debt paydown and disciplined bolt-on M&A.
| Metric | Target | Period |
|---|---|---|
| Organic constant currency revenue growth | 5%-7% | FY2026 |
| Adjusted EBITDA | $975 million-$1.005 billion | FY2026 |
| Adjusted EPS | $1.03-$1.09 | FY2026 |
| Innovation revenue | $1.2 billion | FY2026 |
| Net leverage | 3.0x-3.2x | Year-end 2026 |
| Reported revenue | $5.01 billion-$5.085 billion | FY2026 |
Organic constant currency revenue growth (FY2026): “For the full year, we now expect organic constant currency growth of 5%-7%.”
Adjusted EBITDA (FY2026): “Adjusted EBITDA of $975 million-$1.005 billion, representing 10% at the midpoint”
Adjusted EPS (FY2026): “adjusted EPS of $1.03-$1.09, representing 13% growth at the midpoint”
Innovation revenue (FY2026): “we are raising our full-year innovation target to $1.2 billion”
Net leverage (Year-end 2026): “We are improving our net leverage target for year-end to 3.0x-3.2x from the previous guidance of 3.1x-3.3x.”
Reported revenue (FY2026): “We are increasing our expected reported revenue range to be between $5.01 billion and $5.085 billion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.9B | 4.7B | 4.4B | 4.4B | 4.4B | 4.8B |
| Net Income | -242M | -232M | 338M | -1.2B | -78M | -483M |
| EPS | $-0.49 | $-0.47 | $0.68 | $-2.50 | $-0.16 | $-0.99 |
| Free Cash Flow | 315M | 284M | 394M | 131M | 281M | 324M |
| ROIC | -0.1% | -0.2% | 3.0% | -0.6% | -0.6% | -3.5% |
| Gross Margin | 55.1% | 55.0% | 54.9% | 56.3% | 56.6% | 55.2% |
| Debt/Equity | 0.61 | 0.63 | 0.73 | 0.95 | 0.82 | 0.86 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -16M | -19M | -18M | -75M | -32M | -335M |
| Operating Margin | -0.3% | -0.4% | -0.4% | -1.7% | -0.7% | -7.0% |
| ROE | -3.7% | -3.7% | 5.5% | -18.2% | -1.1% | -6.1% |
| Shares Outstanding | 499M | 494M | 497M | 492M | 488M | 488M |
| Metric | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||
| Revenue | 2.9B | 2.9B | 3.1B | 3.1B | 3.3B | 4.8B | 4.4B | 4.4B | 4.4B | 4.7B | 4.9B |
| Gross Margin | 51.6% | 48.3% | 48.7% | 52.1% | 49.1% | 55.2% | 56.6% | 56.3% | 54.9% | 55.0% | 55.1% |
| R&D | 266M | 252M | 247M | 270M | 329M | 369M | 321M | 327M | 344M | 368M | 371M |
| SG&A | 785M | 780M | 735M | 760M | 997M | 1.4B | 1.3B | 1.3B | 1.3B | 1.4B | 1.5B |
| EBIT | -22M | -233M | 144M | 157M | -527M | -335M | -32M | -75M | -18M | -19M | -16M |
| Op. Margin | -0.8% | -8.1% | 4.7% | 5.1% | -16.1% | -7.0% | -0.7% | -1.7% | -0.4% | -0.4% | -0.3% |
| Net Income | -48M | -311M | 87M | 68M | -574M | -483M | -78M | -1.2B | 338M | -232M | -242M |
| Net Margin | -1.6% | -10.8% | 2.8% | 2.2% | -17.5% | -10.1% | -1.8% | -27.9% | 7.6% | -4.9% | -4.9% |
| Non-Recurring | 308M | 213M | 28M | 19M | 161M | 110M | 7.0M | 1.0B | 684M | 156M | 154M |
| Returns on Capital | |||||||||||
| ROIC | -1.3% | -4.2% | 1.5% | 1.8% | -5.2% | -3.5% | -0.6% | -0.6% | 3.0% | -0.2% | -0.1% |
| ROE | -1.3% | -4.2% | 1.3% | 1.3% | -8.2% | -6.1% | -1.1% | -18.2% | 5.5% | -3.7% | -3.7% |
| ROA | -28.1% | -6.8% | 1.0% | 0.8% | -4.3% | -2.8% | -0.5% | -8.2% | 2.5% | -1.8% | -1.8% |
| Cash Flow | |||||||||||
| Op. Cash Flow | 156M | 174M | 487M | 224M | -41M | 483M | 452M | 271M | 541M | 560M | 577M |
| Free Cash Flow | 46M | 75M | 353M | 84M | -176M | 324M | 281M | 131M | 394M | 284M | 315M |
| Owner Earnings | -119M | -170M | 165M | -139M | -605M | -299M | -289M | -469M | -176M | -188M | -188M |
| CapEx | 110M | 99M | 135M | 140M | 135M | 159M | 171M | 140M | 147M | 276M | 262M |
| Maint. CapEx | 254M | 318M | 296M | 314M | 517M | 716M | 682M | 694M | 662M | 680M | 691M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 254M | 318M | 296M | 314M | 517M | 716M | 682M | 694M | 662M | 680M | 691M |
| CapEx/OCF | N/A | N/A | 27.6% | 62.7% | N/A | 26.1% | 37.8% | 51.7% | 27.2% | 49.3% | 45.4% |
| Capital Allocation | |||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 20M | 25M | 26M | 49M | 47M | 66M | 59M | 46M | 55M | 68M | 74M |
| Debt Repayment | 0 | 0 | 25M | 0 | 102M | 2.0M | 2.0M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||
| Net Debt | -259M | -323M | 2.0B | 2.1B | 5.8B | 5.8B | 5.6B | 5.6B | 4.0B | 3.6B | 3.6B |
| Cash & Equiv. | 259M | 323M | 475M | 334M | 495M | 638M | 345M | 352M | 468M | 545M | 428M |
| Long-Term Debt | 0 | 0 | 2.4B | 2.3B | 5.6B | 6.0B | 5.4B | 5.7B | 4.3B | 3.9B | 3.9B |
| Debt/Equity | 0.00 | 0.00 | 0.48 | 0.44 | 0.75 | 0.86 | 0.82 | 0.95 | 0.73 | 0.63 | 0.61 |
| Interest Coverage | N/A | N/A | 4.9 | 2.0 | -3.5 | -1.4 | -0.1 | -0.3 | -0.1 | -0.1 | -0.1 |
| Equity | 134M | 7.8B | 5.2B | 5.5B | 8.5B | 7.5B | 7.3B | 6.2B | 6.1B | 6.5B | 6.5B |
| Total Assets | 171M | 8.9B | 9.0B | 9.0B | 17.7B | 16.5B | 15.5B | 14.4B | 12.6B | 13.4B | 13.2B |
| Total Liabilities | 37M | 1.2B | 3.8B | 3.4B | 9.2B | 9.0B | 8.2B | 8.1B | 6.5B | 6.8B | 6.7B |
| Intangibles | N/A | 2.7B | 2.5B | 2.5B | 6.4B | 5.6B | 4.8B | 4.5B | 3.7B | 3.4B | 3.2B |
| Retained Earnings | N/A | 0 | 16M | 84M | -477M | -979M | -1.1B | -2.3B | -1.9B | -2.2B | -2.1B |
| Working Capital | N/A | 1.5B | 1.5B | 1.6B | 1.3B | 1.6B | 1.6B | 2.2B | 1.9B | 1.9B | 1.9B |
| Current Assets | 827M | 2.1B | 2.5B | 2.4B | 3.4B | 3.3B | 3.3B | 3.4B | 3.2B | 3.5B | 3.6B |
| Current Liabilities | N/A | 643M | 971M | 819M | 2.1B | 1.6B | 1.7B | 1.2B | 1.3B | 1.6B | 1.7B |
| Per Share Data | |||||||||||
| EPS | -0.16 | -1.06 | 0.28 | 0.18 | -1.30 | -0.99 | -0.16 | -2.50 | 0.68 | -0.47 | -0.49 |
| Owner EPS | -0.40 | -0.58 | 0.54 | -0.37 | -1.37 | -0.61 | -0.59 | -0.95 | -0.35 | -0.38 | -0.38 |
| Book Value | 0.45 | 26.54 | 16.82 | 14.67 | 19.15 | 15.39 | 14.95 | 12.64 | 12.26 | 13.26 | 13.02 |
| Cash Flow/Share | 0.52 | 0.59 | 1.58 | 0.59 | -0.09 | 0.99 | 0.93 | 0.55 | 1.09 | 1.13 | 0.90 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 299.4M | 293.1M | 308.9M | 377.8M | 441.5M | 487.9M | 487.5M | 492.4M | 497.1M | 493.6M | 499.4M |
| Valuation | |||||||||||
| P/E Ratio | N/A | N/A | 111.9 | 163.0 | N/A | N/A | N/A | N/A | 17.7 | N/A | -51.1 |
| P/FCF | N/A | N/A | 27.4 | 132.0 | N/A | 43.5 | 20.1 | 56.2 | 15.2 | 39.3 | 39.5 |
| EV/EBIT | N/A | N/A | N/A | N/A | 107.9 | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | N/A | 1.9 | 2.0 | 1.6 | 1.9 | 0.8 | 1.2 | 1.0 | 1.7 | 1.9 |
| Price/Sales | N/A | N/A | 3.3 | 3.7 | 3.5 | 3.3 | 2.2 | 1.2 | 1.6 | 1.6 | 2.5 |
| FCF Yield | N/A | N/A | 3.6% | 0.8% | -1.3% | 2.3% | 5.0% | 1.8% | 6.6% | 2.5% | 2.5% |
| Market Cap | 0 | N/A | 9.7B | 11.1B | 13.5B | 14.1B | 5.6B | 7.4B | 6.0B | 11.2B | 12.4B |
| Avg. Price | 0.00 | N/A | 33.00 | 30.10 | 26.32 | 32.13 | 20.21 | 11.00 | 14.66 | 15.36 | 24.91 |
| Year-End Price | 0.00 | N/A | 31.32 | 29.34 | 30.66 | 28.88 | 11.57 | 14.94 | 12.06 | 22.60 | 24.91 |
Elanco Animal Health Inc passes 2 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 43.6x vs a median of 33.4x. The company's 5-year average gross margin is 55.6%. At current prices, the estimated annualized return to fair value is +7.0%.
Elanco Animal Health Inc (ELAN) has a debt-to-equity ratio of 0.63. This indicates moderate leverage.
Elanco Animal Health Inc (ELAN) reported earnings per share (EPS) of $-0.47 in its most recent fiscal year.
Elanco Animal Health Inc (ELAN) has a return on equity (ROE) of -3.7%. A negative ROE may indicate losses or negative equity.
Elanco Animal Health Inc (ELAN) has a 5-year average gross margin of 55.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 10 years of financial data for Elanco Animal Health Inc (ELAN), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Elanco Animal Health Inc (ELAN) has a book value per share of $13.26, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued momentum from its Big Six innovation products, which are projected to double in revenue from 2025 to 2028 on top of a stabilizing base, with five to six blockbuster potential approvals expected through 2031. The company anticipates meaningful gross margin expansion beginning in 2026 through the Elanco Ascend productivity initiative, which targets general and administrative cost savings and manufacturing efficiencies, while simultaneously investing in global launches of innovation products. Pricing is expected to accelerate in 2026 from 2025 levels, reflecting the enhanced value of the company's latest innovation and comprehensive portfolio, with management implementing its largest price increase in five years to U.S. veterinary clinics. The company remains focused on deleveraging toward a long-term target of 2x–2.5x net leverage, with a path to sub-3x leverage expected in 2027, while maintaining a balanced capital allocation strategy prioritizing debt paydown and disciplined bolt-on M&A.
Based on recent SEC filings and earnings calls, Elanco Animal Health Inc (ELAN) has provided the following forward guidance: Organic constant currency revenue growth: 5%-7% (FY2026); Adjusted EBITDA: $975 million-$1.005 billion (FY2026); Adjusted EPS: $1.03-$1.09 (FY2026); Innovation revenue: $1.2 billion (FY2026); Net leverage: 3.0x-3.2x (Year-end 2026), plus 1 additional metric.