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⚠️ Not investment advice. Past performance does not guarantee future results.
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Elanco Animal Health ELAN

United StatesHealthcare · Drug Manufacturers - Specialty & GenericUSD
4.9AI score
Rank 1,739 of 2,130
better than 17% of companies
22.36USD
▲ 13.2% in one year
ELAN MSCI World +22.1%
Average analyst target
31.00 USD (+38.6%)
13 analysts
52-wk low 19.40High 27.98
📈 Chart on TradingView ↗(affiliate link)Analysis of 08/10/2026

What does it do?

Elanco Animal Health is a veterinary pharmaceutical company that develops and markets medicines, vaccines, and health solutions for companion and production animals, with a business model based on innovation and sales through veterinarians and distributors.

Key points

from its scores
  • ✓Strong growth8.4
  • ✕Little or no dividend1.5
  • ✕Unfavourable risk and backdrop2.4
  • ✕Little competitive advantage4.7

AI analysis

bottom line, main risk, context and news
Bottom line

The earnings improvement is notable, but high leverage and low profitability warrant caution.

Elanco shows revenue growth of 10.2% and a spectacular improvement in earnings (440.5%), but its financial health is fragile (net debt/EBITDA of 3.68) and its return on equity is negative (ROE -2.98%), which limits its appeal despite a reasonable valuation (forward P/E 17.4).

⚠ Main risk

High indebtedness (net debt/EBITDA of 3.68) and weak return on equity (ROE -2.98%) are the main risks, along with exposure to FDA regulation and potential litigation.

Context and risks

Elanco operates in the veterinary pharmaceutical sector, subject to FDA regulation and potential product litigation. Its domicile in the U.S. carries a moderate regulatory risk, reflected in the governance reference. There are no recent news items that alter this profile.

Is Elanco Animal Health stock cheap or expensive?

at the analysis date
In line with its sector

On EV / EBITDA, it trades in line with the Healthcare median (within 15%).

MultipleCompanySectorDifference
EV / EBITDA14.814.5+2%
Price / book1.74.1−59%
Price / sales2.23.4−35%

Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.

Valuation score: 5.0 out of 10 (median for Healthcare: 4.7).

Average analyst target: 31.00 USD, +38.6% versus the price.

Indicative fair value · USD
Cash flow (DCF)29.14▲ +30% vs price
Price22.36at the analysis date

Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.

Work out its fair value yourself →How much would you have made investing every month? →

Comparing it with its sector does not say whether it is a good buy: this is not investment advice.

🛒 Where to buy ELANCheapest · US (NYSE/Nasdaq) · sample 200.00 € orderCheapest · US (NYSE/Nasdaq) · sample 200.00 € orderAvailable in your country · US (NYSE/Nasdaq) · sample 200.00 € order
By the cost of that order: commission and FX, taxes excluded (public fee schedules). Brokers marked «affiliate» may pay Meridian a commission at no cost to you. This is not investment advice. · Compare all 22 brokers by real cost →

Score by category

0 to 10 · hover overtap each one to see what it measures
Financial healthiFair5.1Healthcare median: 6.5
Quality / MoatiWeak4.7Healthcare median: 5.5
ValuationiFair5.0Healthcare median: 4.7
GrowthiGood8.4Healthcare median: 6.6
DividendiPoor1.5Healthcare median: 1.5
MomentumiFair6.4Healthcare median: 6.2
Risk & ContextiPoor2.4Healthcare median: 7.1
Healthcare median7 or more 5 to 7 under 5

Key metrics

at the analysis date · compared with the Healthcare median
EV / EBITDAi
14.8
Healthcare: 14.5in line
ROEi
−3.0%
Healthcare: 10.8%below
Operating margini
8.6%
Healthcare: 15.2%below
Net debt / EBITDAi
3.68
Healthcare: 1.53above
Revenue growthi
+10.2%
Healthcare: +8.8%above
Dividend yieldi
0.0%
Healthcare: 0.0%below

Valuation

Forward P/E
17.4
EV / EBITDA
14.8
Price / book
1.7
Price / sales
2.2
PEG
4.04
Market cap
11.2B USD
Enterprise value
14.9B USD

Profitability

ROE
−3.0%
ROA
1.6%
ROIC (approx.)
4.0%
Gross margin
55.4%
Operating margin
8.6%
Net margin
−4.0%
Free cash flow
826.9M USD
FCF yield
7.4%
Cash conversion
82%

Solvency

Total debt
4.2B USD
Net debt
3.7B USD
Cash
530.0M USD
EBITDA
1.0B USD
Net debt / EBITDA
3.68
Debt / equity
64.25
Current ratio
2.05
Quick ratio
0.91

Growth

Revenue growth
+10.2%
Earnings growth
+440.5%
EPS (TTM)
−0.41 USD
EPS (forward)
1.28 USD

Dividend

Dividend yield
0.0%
Payout
0.0%

Risk and market

Beta
1.71
Analyst consensus
Strong buy (13)
Target price
31.00 USD
52-week range
19.40 – 27.98

Compare it with its sector

All 217 in Healthcare →
See the full ranking with filters →

Keep browsing the ranking

sorted by score, highest first

Frequently asked questions about Elanco Animal Health

Is Elanco Animal Health stock cheap or expensive?

On EV / EBITDA, it trades in line with the Healthcare median (within 15%). Valuation score: 5.0 out of 10 (median for Healthcare: 4.7). Average analyst target: 31.00 USD, +38.6% versus the price. This is not investment advice.

What score does Elanco Animal Health get on MeridIAn Screener?

It scores 4.9 out of 10, rank 1,739 of 2,130 (better than 17% of the companies analysed). Its strongest category is Growth (8.4) and its weakest, Dividend (1.5). Analysis of 08/10/2026.

How much is Elanco Animal Health worth on the stock market?

Its market capitalisation is 11.2B USD and its enterprise value, debt included, is 14.9B USD.

How much debt does Elanco Animal Health have?

Its net debt (debt minus cash) is 3.7B USD. That is 3.68 times its EBITDA; the Healthcare median is 1.53.

Does Elanco Animal Health pay a dividend?

It pays no dividend, or almost none.

How has Elanco Animal Health stock performed over the last year?

It has risen 13.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 19.40 and 27.98 USD. Past performance does not guarantee future results.

What do analysts think of Elanco Animal Health?

13 analysts cover it; their average recommendation is “Strong buy” and their average target is 31.00 USD (+38.6% versus the price). It is an estimate, not market data.