Quality Investor

Elanco Animal Health Incorporated

Rank #366Startup

ELAN · NYSE · Healthcare

Elanco Animal Health Incorporated (ELAN) — Rank #366 by gross profitability (GP/assets 0.19) · ROE -3.5% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001739104 · all metrics point-in-time as of the filing date.

About

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals worldwide.

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The company 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 Family, Interceptor Plus, Drontal family, and Drontal Plus; 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. It also provides farm animal products that help farmers improve animal health and wellbeing, and raise livestock, such as cattle, swine, and poultry. In addition, the company 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, it offers other pet health products for cats and dogs under the Atopica, Milbemax, Onsior, and Tru Family trademarks; and other farm animal products for poultry, cattle, and swine under the AviPro, Catosal, Denagard, Hemicell, Pulmotil, and Surmax tradmarks. The company 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 Indianapolis, Indiana.

Industry
Drug Manufacturers - Specialty & Generic
Sector
Healthcare
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
elanco.com

Price History

ELAN-32.2% · -7.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens for pre-profit companies.

Market Cap

$11.57B

P/E (annual)

P/S (annual)

2.5

P/B

1.8

P/OCF (annual)

20.7

Shareholder Yield

0.2%

Employees

9,400

Industry

Drug Manufacturers - Specialty & Generic

Exchange

NYSE

Signal Flags

3 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.19
Return on equity
-3.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.06
Current ratio
2.05×
Net cash
-$3.87B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.4%

Growth

2/2 pass
Revenue growth
6.2%
Piotroski F-Score
6 / 9
Share dilution
-0.2%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

4 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

17.3%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.2% — per-share value needs a total required return of 17.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.4%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

12.4%

r = 10% (base)

17.3%

r = 12%

21.5%

Net debt / market cap: 33.6%— material leverage inflates the implied growth read.

Base FCF: $284M3Y mean FCF: $269.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

2.8xFair
1.2xmed 2.9x4.5x

P / B

Price / book value per share

2.0xExpensive
0.8xmed 1.8x2.1x

P / GP

Price / gross profit per share

5.1xFair
2.2xmed 5.3x9.2x

P / FCF

Price / free cash flow per share

46.1xFair
13.5xmed 42.4x188.6x

Burn rate (cash flow) is the primary read at this stage — TAM and product-market fit aren't metrics this dashboard tracks.

Profitability

Gross profitability (GP / assets)

0.19

Primary signal (Novy-Marx).

9th of 9 SIC 2834 peers

Return on equity

-3.5%

Gross margin

55.0%

9th of 9 SIC 2834 peers

Revenue growth (YoY)

6.2%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

2.2%

Revenue CAGR (5Y)

7.6%

Earnings CAGR (3Y)

FCF CAGR (3Y)

-3.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.06

6th of 9 SIC 2834 peers (best = lowest)

Current ratio

2.05×

7th of 9 SIC 2834 peers

Quick ratio

0.87×

Net cash

-$3.87B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$284.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.22

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Startup
Hypergrowth
Decline
Value