Elanco Animal Health

5EA.DE

Drug Manufacturers - Specialty & Generic · Healthcare

Price

€20.64

+0.51 (+2.53%)

Market Cap

€10.26B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count rising — dilution

+1.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 487.2M (2021) → 496.4M (2025)

Winston Score History

The full picture

Elanco Animal Health makes medicines and health products for animals. Their products include vaccines, parasite treatments, and other drugs sold to pet owners through vets, as well as to farmers who raise livestock like cattle, pigs, and poultry. The company is one of the largest animal health businesses in the world, competing directly with Zoetis and Merck Animal Health.

Elanco earns money by selling its products to veterinary clinics, farm supply distributors, and retailers across more than 90 countries. It is a mid-sized pharmaceutical company with a gross margin above 55%, meaning it keeps a solid portion of each dollar it earns after production costs. The company carries a significant debt load from its 2019 acquisition of Bayer's animal health business, and reducing that debt while growing its companion animal portfolio — products for pets like dogs and cats — is the central challenge and opportunity facing the business today.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+485.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$368M/ year

↓ Declining (-8% vs prior year)

7.8% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$543M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Elanco Animal Health is a rare growth stock that's already generating positive cash flow while growing at 10%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

48.2%

Healthy — 48.2% gross margin

Profit after running costs

Operating Margin

8.6%

Modest — 8.6% operating margin

Return on the money invested

ROCE

3.2%

Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+11.8%

Steady sales growth (+11.8% YoY)

Profit growth

EPS YoY

-145.8%

Earnings shrinking (-145.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

7.6%

Modest free cash flow (7.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.59

Conservative — low debt load (0.59)

Covers its interest

Interest Cover

1.13x

Dangerous — barely covers interest (1.1x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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