WallStSmart

Elanco Animal Health (ELAN) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target

Elanco Animal Health stock (ELAN) is currently trading at $25.50. Elanco Animal Health PS ratio (Price-to-Sales) is 2.63. Analyst consensus price target for ELAN is $28.77. WallStSmart rates ELAN as Underperform.

  • ELAN PE ratio analysis and historical PE chart
  • ELAN PS ratio (Price-to-Sales) history and trend
  • ELAN intrinsic value — DCF, Graham Number, EPV models
  • ELAN stock price prediction 2025 2026 2027 2028 2029 2030
  • ELAN fair value vs current price
  • ELAN insider transactions and insider buying
  • Is ELAN undervalued or overvalued?
  • Elanco Animal Health financial analysis — revenue, earnings, cash flow
  • ELAN Piotroski F-Score and Altman Z-Score
  • ELAN analyst price target and Smart Rating
ELAN

Elanco Animal Health

NYSEHEALTHCARE
$25.50
$0.60 (2.41%)
52W$8.02
$27.72
Target$28.77+12.8%

📊 No data available

Try selecting a different time range

WallStSmart

Smart Analysis

Elanco Animal Health (ELAN) · 10 metrics scored

Smart Score

51
out of 100
Grade: C-
Buy
Investment Rating

Category Performance

WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.

Investment Thesis

Strong fundamentals in market cap, price/book, eps growth. Concerns around peg ratio and return on equity. Fundamentals are solid but monitor weak areas for improvement.

Elanco Animal Health (ELAN) Key Strengths (4)

Avg Score: 9.3/10
EPS GrowthGrowth
116.70%10/10

Earnings per share surging 116.70% year-over-year

Institutional Own.Quality
109.79%10/10

109.79% of shares held by major funds and institutions

Market CapQuality
$12.38B9/10

Large-cap company with substantial market presence

Price/BookValuation
1.868/10

Trading at 1.86x book value, attractively priced

Supporting Valuation Data

ELAN Target Price
$28.77
17% Upside

Elanco Animal Health (ELAN) Areas to Watch (6)

Avg Score: 2.5/10
Return on EquityProfitability
-3.67%0/10

Company is destroying shareholder value

Profit MarginProfitability
-4.92%0/10

Company is losing money with a negative profit margin

Operating MarginProfitability
2.27%1/10

Near-zero operating margins, business under pressure

PEG RatioValuation
4.112/10

Very expensive relative to growth, significant premium

Price/SalesValuation
2.636/10

Revenue is fairly priced at 2.63x sales

Revenue GrowthGrowth
12.20%6/10

Solid revenue growth at 12.20% per year

Elanco Animal Health (ELAN) Detailed Analysis Report

Overall Assessment

This company scores 51/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.3/10) while 6 fall into concern territory (avg 2.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.

The Bull Case

The strongest argument centers on EPS Growth, Institutional Own., Market Cap. Valuation metrics including Price/Book (1.86) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 116.70%.

The Bear Case

The primary concerns are Return on Equity, Profit Margin, Operating Margin. Some valuation metrics including PEG Ratio (4.11), Price/Sales (2.63) suggest expensive pricing. Growth concerns include Revenue Growth at 12.20%, which may limit upside. Profitability pressure is visible in Return on Equity at -3.67%, Operating Margin at 2.27%, Profit Margin at -4.92%.

Key Dynamics to Monitor

Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -3.67% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 12.20% needing to reaccelerate.

Risk Considerations

Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.

Bottom Line

Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Return on Equity, Profit Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.

Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.

ELAN Price-to-Sales(PS) Ratio Chart

Historical valuation based on market cap ÷ trailing 12-month revenue

ELAN's Price-to-Sales ratio of 2.63x sits near its historical average of 3.03x (51th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 56% below its historical high of 6x set in Sep 2018, and 179% above its historical low of 0.94x in May 2023. Over the past 12 months, the PS ratio has expanded from ~1.2x, reflecting growing market expectations outpacing revenue growth.

Compare ELAN with Competitors

Top DRUG MANUFACTURERS - SPECIALTY & GENERIC stocks by market cap

Compare any two stocks →

WallStSmart Analysis Synopsis

Data-driven financial summary for Elanco Animal Health (ELAN) · HEALTHCAREDRUG MANUFACTURERS - SPECIALTY & GENERIC

The Big Picture

Elanco Animal Health is in a turnaround phase, with management focused on restoring profitability. Revenue reached 4.7B with 12% growth year-over-year. The company is currently unprofitable, posting a -4.9% profit margin.

Key Findings

Cash Flow Positive

Generating 46M in free cash flow and 108M in operating cash flow. Earnings are translating into actual cash generation.

Operating at a Loss

The company is unprofitable with a -4.9% profit margin. The path to breakeven will be the key catalyst.

What to Watch Next

Volatility is elevated with a beta of 1.89, so expect amplified moves relative to the broader market.

Sector dynamics: monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive moves, and regulatory changes that could impact Elanco Animal Health.

Bottom Line

Elanco Animal Health is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.

This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Insider Transactions(71 last 3 months)

Total Buys
51
Total Sells
20
Dec 31, 2025(1 transaction)
ANAND, KAPILA K
Director
Buy
Shares
+381.131

Data sourced from SEC Form 4 filings

Last updated: 10:09:45 AM

About Elanco Animal Health(ELAN)

Exchange

NYSE

Sector

HEALTHCARE

Industry

DRUG MANUFACTURERS - SPECIALTY...

Country

USA

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.