Is Elanco Animal Stock a Good Investment?
Elanco Animal Investment Advice | ELAN |
- Examine Elanco Animal's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Elanco Animal's leadership team and their track record. Good management can help Elanco Animal navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Elanco Animal's business and its evolving consumer preferences.
- Compare Elanco Animal's performance and market position to its competitors. Analyze how Elanco Animal is positioned in terms of product offerings, innovation, and market share.
- Check if Elanco Animal pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Elanco Animal's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Elanco Animal Health stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Elanco Animal Health is a good investment.
Sell | Buy |
Hold
Market Performance | Insignificant | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Elanco Animal Stock
Researching Elanco Animal's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.22. Some equities with similar Price to Book (P/B) outperform the market in the long run. Elanco Animal Health has Price/Earnings To Growth (PEG) ratio of 1.84. The entity recorded a loss per share of 2.55. The firm had not issued any dividends in recent years.
To determine if Elanco Animal is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Elanco Animal's research are outlined below:
| The company reported the previous year's revenue of 4.42 B. Net Loss for the year was (1.23 B) with profit before overhead, payroll, taxes, and interest of 2.5 B. | |
| Elanco Animal Health has a strong financial position based on the latest SEC filings | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from accesswire.com: Investors Are Invited To Join The Schall Law Firm In An Inquiry Into Elanco Animal Health Incorporated For Possible Securities Fraud |
Elanco Animal Quarterly Liabilities And Stockholders Equity |
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Elanco Animal uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Elanco Animal Health. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Elanco Animal's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Elanco Animal's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Elanco Animal's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-11-05 | 2021-09-30 | 0.17 | 0.19 | 0.02 | 11 | ||
2024-02-26 | 2023-12-31 | 0.11 | 0.08 | -0.03 | 27 | ||
2021-02-24 | 2020-12-31 | 0.09 | 0.12 | 0.03 | 33 | ||
2020-07-30 | 2020-06-30 | 0.06 | 0.09 | 0.03 | 50 | ||
2022-11-08 | 2022-09-30 | 0.16 | 0.2 | 0.04 | 25 | ||
2022-02-24 | 2021-12-31 | 0.17 | 0.21 | 0.04 | 23 | ||
2019-11-06 | 2019-09-30 | 0.26 | 0.3 | 0.04 | 15 | ||
2018-11-06 | 2018-09-30 | 0.25 | 0.29 | 0.04 | 16 |
Elanco Animal Target Price Consensus
We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Elanco target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Elanco Animal's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 14 | Buy |
Most Elanco analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Elanco stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Elanco Animal Health, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationElanco Animal Target Price Projection
Elanco Animal's current and average target prices are 14.66 and 13.81, respectively. The current price of Elanco Animal is the price at which Elanco Animal Health is currently trading. On the other hand, Elanco Animal's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Elanco Animal Market Quote on 5th of October 2024
Target Price
Analyst Consensus On Elanco Animal Target Price
Elanco Animal Analyst Ratings
Elanco Animal's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Elanco Animal stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Elanco Animal's financials, market performance, and future outlook by experienced professionals. Elanco Animal's historical ratings below, therefore, can serve as a valuable tool for investors.Know Elanco Animal's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Elanco Animal is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Elanco Animal Health backward and forwards among themselves. Elanco Animal's institutional investor refers to the entity that pools money to purchase Elanco Animal's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Shapiro Capital Management Co Inc | 2024-06-30 | 9.6 M | Millennium Management Llc | 2024-06-30 | 9.4 M | Magnetar Financial Llc | 2024-06-30 | 8.3 M | Geode Capital Management, Llc | 2024-06-30 | 7.8 M | Manufacturers Life Insurance Co | 2024-06-30 | 6 M | Jpmorgan Chase & Co | 2024-06-30 | 5.7 M | Balyasny Asset Management Llc | 2024-06-30 | 5.4 M | Charles Schwab Investment Management Inc | 2024-06-30 | 4.7 M | Norges Bank | 2024-06-30 | 3.9 M | Dodge & Cox | 2024-06-30 | 83.6 M | Primecap Management Company | 2024-06-30 | 52.8 M |
Elanco Animal's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 7.25 B.Market Cap |
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Elanco Animal's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.26) | (0.24) | |
| Return On Capital Employed | 0.02 | 0.03 | |
| Return On Assets | (0.09) | (0.08) | |
| Return On Equity | (0.20) | (0.19) |
Determining Elanco Animal's profitability involves analyzing its financial statements and using various financial metrics to determine if Elanco Animal is a good buy. For example, gross profit margin measures Elanco Animal's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Elanco Animal's profitability and make more informed investment decisions.
Elanco Animal's Earnings Breakdown by Geography
Evaluate Elanco Animal's management efficiency
Elanco Animal Health has return on total asset (ROA) of 0.013 % which means that it generated a profit of $0.013 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1879) %, meaning that it created substantial loss on money invested by shareholders. Elanco Animal's management efficiency ratios could be used to measure how well Elanco Animal manages its routine affairs as well as how well it operates its assets and liabilities. As of the 5th of October 2024, Return On Capital Employed is likely to grow to 0.03, though Return On Tangible Assets are likely to grow to (0.24). As of the 5th of October 2024, Asset Turnover is likely to grow to 0.33, while Total Assets are likely to drop about 13.6 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.64 | 18.62 | |
| Tangible Book Value Per Share | (6.84) | (6.49) | |
| Enterprise Value Over EBITDA | 13.50 | 23.56 | |
| Price Book Value Ratio | 1.18 | 1.76 | |
| Enterprise Value Multiple | 13.50 | 23.56 | |
| Price Fair Value | 1.18 | 1.76 |
The analysis of Elanco Animal's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Elanco Animal's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Elanco Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta 1.402 |
Basic technical analysis of Elanco Stock
As of the 5th of October, Elanco Animal shows the Mean Deviation of 1.82, semi deviation of 2.22, and Downside Deviation of 2.34. Elanco Animal Health technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Elanco Animal's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Elanco Animal insiders, such as employees or executives, is commonly permitted as long as it does not rely on Elanco Animal's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Elanco Animal insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Elanco Animal's Outstanding Corporate Bonds
Elanco Animal issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Elanco Animal Health uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Elanco bonds can be classified according to their maturity, which is the date when Elanco Animal Health has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Elanco Animal Health Corp BondUS28414HAG83 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| US28415LAA17 Corp BondUS28415LAA17 | View |
Understand Elanco Animal's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Elanco Animal's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.035 | |||
| Market Risk Adjusted Performance | 0.0693 | |||
| Mean Deviation | 1.82 | |||
| Semi Deviation | 2.22 | |||
| Downside Deviation | 2.34 | |||
| Coefficient Of Variation | 2869.56 | |||
| Standard Deviation | 2.44 | |||
| Variance | 5.96 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.24) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0593 | |||
| Maximum Drawdown | 13.13 | |||
| Value At Risk | (3.88) | |||
| Potential Upside | 4.93 | |||
| Downside Variance | 5.48 | |||
| Semi Variance | 4.91 | |||
| Expected Short fall | (2.03) | |||
| Skewness | 0.1594 | |||
| Kurtosis | 0.7452 |
| Risk Adjusted Performance | 0.035 | |||
| Market Risk Adjusted Performance | 0.0693 | |||
| Mean Deviation | 1.82 | |||
| Semi Deviation | 2.22 | |||
| Downside Deviation | 2.34 | |||
| Coefficient Of Variation | 2869.56 | |||
| Standard Deviation | 2.44 | |||
| Variance | 5.96 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.24) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0593 | |||
| Maximum Drawdown | 13.13 | |||
| Value At Risk | (3.88) | |||
| Potential Upside | 4.93 | |||
| Downside Variance | 5.48 | |||
| Semi Variance | 4.91 | |||
| Expected Short fall | (2.03) | |||
| Skewness | 0.1594 | |||
| Kurtosis | 0.7452 |
Consider Elanco Animal's intraday indicators
Elanco Animal intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Elanco Animal stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Elanco Animal Corporate Filings
F4 | 2nd of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 8th of August 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 8th of July 2024 An amended filing to the original Schedule 13G | ViewVerify |
| 28th of May 2024 Other Reports | ViewVerify |
Elanco Stock media impact
Far too much social signal, news, headlines, and media speculation about Elanco Animal that are available to investors today. That information is available publicly through Elanco media outlets and privately through word of mouth or via Elanco internal channels. However, regardless of the origin, that massive amount of Elanco data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Elanco Animal news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Elanco Animal relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Elanco Animal's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Elanco Animal alpha.
Elanco Animal Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Elanco Animal can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Elanco Animal Health Historical Investor Sentiment
Investor biases related to Elanco Animal's public news can be used to forecast risks associated with an investment in Elanco. The trend in average sentiment can be used to explain how an investor holding Elanco can time the market purely based on public headlines and social activities around Elanco Animal Health. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Elanco Animal's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Elanco Animal and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Elanco Animal news discussions. The higher the estimate score, the more favorable the investor's outlook on Elanco Animal.
Elanco Animal Corporate Directors
| Joshua Smiley | Independent Director | Profile | |
| Carl McMillian | Independent Director | Profile | |
| Denise ScotsKnight | Independent Director | Profile | |
| Kirk McDonald | Independent Director | Profile |
Additional Information and Resources on Investing in Elanco Stock
When determining whether Elanco Animal Health offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Elanco Animal's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Elanco Animal Health Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Elanco Animal Health Stock:Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Elanco Animal Health. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Elanco Animal. If investors know Elanco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Elanco Animal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.71) | Earnings Share (2.55) | Revenue Per Share 9.107 | Quarterly Revenue Growth 0.12 | Return On Assets 0.013 |
The market value of Elanco Animal Health is measured differently than its book value, which is the value of Elanco that is recorded on the company's balance sheet. Investors also form their own opinion of Elanco Animal's value that differs from its market value or its book value, called intrinsic value, which is Elanco Animal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Elanco Animal's market value can be influenced by many factors that don't directly affect Elanco Animal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Elanco Animal's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Elanco Animal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Elanco Animal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.