Elanco Animal Health Incorporated Common Stock (ELAN)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Elanco is an animal-health business with recognizable brands in parasiticides and vaccines for pets and farm animals. That can be a decent business; pets are family and farm productivity matters. But I want a durable moat, and the numbers show a company still repairing itself. In fiscal 2025 it reported revenue of $4.7B and a net loss of $232M, or diluted EPS of -$0.47. That followed fiscal 2024 revenue of $4.4B, net income of $338M, and EPS of $0.68, and fiscal 2023 revenue of $4.4B with a $1.2B net loss. The pattern is volatile, not a steady compounder. More recently, fiscal Q2 2026, quarter ended 2026-06-30, showed revenue of $1.4B and net income of $54M, or $0.11 per diluted share; fiscal Q1 2026 showed $57M net income and $0.11 EPS. So the turnaround is real, but it is early. FairStock calculates a negative P/E of -54.66 at the 2026-10-13 close, P/B of 1.70, ROE of -2.98%, ROCE of 1.56%, and EV/EBITDA of 18.82. Free cash flow is $379M, a 3.4% FCF yield—respectable but not enough to make the stock scream bargain. Debt-to-equity of 0.64 is manageable, yet Altman Z-score 1.05 and Piotroski 5/9 suggest fragility. FairStock's 48/100 score and Lynch TURNAROUND tag—loss in latest year after earlier profits—fit that picture. I would want consistent profits and lower leverage before paying up. Growth is present, but quality and predictability are not yet proven.

In plain English: Elanco makes and sells medicines and treatments for pets and farm animals, including flea and tick products, vaccines, and other animal-health items. It made money in the first half of 2026, but it lost money in fiscal 2025 and 2023, so the business still looks uneven rather than clearly strong. At $22.41 on 2026-10-13, the price does not look like an obvious bargain given thin profits and debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer