Quality Investor

Elanco Animal Health Incorporated

Rank #349StartupWatchlistCompare with other stocks

ELAN · NYSE · Healthcare

Elanco Animal Health Incorporated (ELAN) — Rank #349 by gross profitability (GP/assets 0.19) · ROE -3.5% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

9,400

Industry

Drug Manufacturers - Specialty & Generic

Exchange

NYSE

10/11

Flags passed

ELAN passes 10/11 quality flags

1 caution to review

  • CAUTION
    Disclosure regression

    A previously-disclosed line item is no longer reported — worth checking the filing for why

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing · Sequential beat (rev + EPS)

No data Operating margin — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

No warning flags · GP/assets 0.19

Gross profitability (GP / assets)

0.19

Primary signal (Novy-Marx).

12th of 12 SIC 2834 peers

Return on equity

-3.5%

Gross margin

55.0%

12th of 12 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 222% above net income

Free cash flow

$284.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

222.4%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.4%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $3.87B, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.06

9th of 12 SIC 2834 peers (best = lowest)

Current ratio

2.05×

10th of 12 SIC 2834 peers

Quick ratio

0.87×

Net cash

-$3.87B

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend(net buybacks)
-0.2%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
0.0%3/5 Good

Lifecycle Phase History

20202025
Startup
Hypergrowth
Decline
Value

Price History

ELAN-32.6% · -7.6% CAGRSPY+82.9% · +12.8% CAGR