Elanco Animal Health Incorporated [NYSE: ELAN] dipped by -0.73% on the last trading session, reaching $32.60 price per share at the time. Elanco Animal Health Incorporated represents 365.70M in outstanding shares, while the company has a total market value of $12.01B with the latest information.

The Elanco Animal Health Incorporated traded at the price of $32.60 with 699247 shares were bought and sold during the latest trading session. Over the period of the last 3 months, the average trading volume of ELAN shares recorded 3.08M.

Elanco Animal Health Incorporated [NYSE:ELAN]: Analyst Rating and Earnings

Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Elanco Animal Health Incorporated [ELAN], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give ELAN an Outperform rating. Its stock price has been found in the range of 28.00 to 37.61. This is compared to its latest closing price of $32.84.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Elanco Animal Health Incorporated [ELAN] is sitting at 2.43. This is compared to 1 month ago, when its average rating was 2.43.

For the quarter ending in Mar-19 Elanco Animal Health Incorporated [ELAN] generated $0.73 billion in sales. That’s 1.67% lower than the average estimate of $0.74 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.

Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 8 Aug (In 20 Days).

Fundamental Analysis of Elanco Animal Health Incorporated [ELAN]

Now let’s turn to look at profitability: with a current Operating Margin for Elanco Animal Health Incorporated [ELAN] sitting at +10.23 and its Gross Margin at +42.25.

This company’s Return on Total Capital is 4.06, and its Return on Invested Capital has reached 2.00%. Its Return on Equity is 1.33, and its Return on Assets is 0.97. These metrics suggest that this Elanco Animal Health Incorporated does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Elanco Animal Health Incorporated [ELAN] has generated a Total Debt to Total Equity ratio of 47.57. Similarly, its Total Debt to Total Capital is 32.23, while its Total Debt to Total Assets stands at 27.60. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 47.01, and its Long-Term Debt to Total Capital is 31.86. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 22.92 and its Total Debt to EBITDA Value is 4.05. The Enterprise Value to Sales for this firm is now 4.56, and its Total Debt to Enterprise Value stands at 0.21. Elanco Animal Health Incorporated [ELAN] has a Price to Book Ratio of 2.22, a Price to Cash Flow Ratio of 20.30.

Shifting the focus to workforce efficiency, Elanco Animal Health Incorporated [ELAN] earns $530,588 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.68 and its Total Asset Turnover is 0.34. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.55 and its Current Ratio is 2.58. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Elanco Animal Health Incorporated [ELAN] has 365.70M shares outstanding, amounting to a total market cap of $12.01B. Its stock price has been found in the range of 28.00 to 37.61. At its current price, it has moved down by -13.32% from its 52-week high, and it has moved up 16.43% from its 52-week low.

This stock’s Relative Strength Index (RSI) is at 44.06. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Elanco Animal Health Incorporated [ELAN] a Reliable Buy?

Elanco Animal Health Incorporated [ELAN] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.