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Elanco Animal Health (STU:5EA) Piotroski F-Score : 6 (As of Dec. 13, 2024)


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What is Elanco Animal Health Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Elanco Animal Health has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Elanco Animal Health's Piotroski F-Score or its related term are showing as below:

STU:5EA' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 6
Current: 6

During the past 9 years, the highest Piotroski F-Score of Elanco Animal Health was 6. The lowest was 2. And the median was 5.


Elanco Animal Health Piotroski F-Score Historical Data

The historical data trend for Elanco Animal Health's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Elanco Animal Health Piotroski F-Score Chart

Elanco Animal Health Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only 6.00 2.00 6.00 5.00 4.00

Elanco Animal Health Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 4.00 5.00 6.00

Competitive Comparison of Elanco Animal Health's Piotroski F-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Elanco Animal Health's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Elanco Animal Health's Piotroski F-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Elanco Animal Health's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Elanco Animal Health's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -129.297 + 29.44 + -46.45 + 327.964 = €182 Mil.
Cash Flow from Operations was 143.969 + 1.84 + 185.8 + 145.962 = €478 Mil.
Revenue was 949.095 + 1108.6 + 1099.936 + 928.03 = €4,086 Mil.
Gross Profit was 475.923 + 634.8 + 640.081 + 484.738 = €2,236 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(13440.328 + 13169.954 + 12897.48 + 12786.756 + 11967.983) / 5 = €12852.5002 Mil.
Total Assets at the begining of this year (Sep23) was €13,440 Mil.
Long-Term Debt & Capital Lease Obligation was €3,886 Mil.
Total Current Assets was €3,033 Mil.
Total Current Liabilities was €1,190 Mil.
Net Income was -50.976 + 96.202 + -89.531 + -1026.952 = €-1,071 Mil.

Revenue was 929.84 + 1174.038 + 975.611 + 1000.716 = €4,080 Mil.
Gross Profit was 506.928 + 712.642 + 575.029 + 544.397 = €2,339 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(15097.48 + 14623.504 + 14728.246 + 14579.708 + 13440.328) / 5 = €14493.8532 Mil.
Total Assets at the begining of last year (Sep22) was €15,097 Mil.
Long-Term Debt & Capital Lease Obligation was €5,500 Mil.
Total Current Assets was €3,340 Mil.
Total Current Liabilities was €1,185 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Elanco Animal Health's current Net Income (TTM) was 182. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Elanco Animal Health's current Cash Flow from Operations (TTM) was 478. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=181.657/13440.328
=0.01351582

ROA (Last Year)=Net Income/Total Assets (Sep22)
=-1071.257/15097.48
=-0.07095601

Elanco Animal Health's return on assets of this year was 0.01351582. Elanco Animal Health's return on assets of last year was -0.07095601. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Elanco Animal Health's current Net Income (TTM) was 182. Elanco Animal Health's current Cash Flow from Operations (TTM) was 478. ==> 478 > 182 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=3886.013/12852.5002
=0.30235463

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=5500.19/14493.8532
=0.37948432

Elanco Animal Health's gearing of this year was 0.30235463. Elanco Animal Health's gearing of last year was 0.37948432. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=3032.766/1190.221
=2.54806964

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=3340.405/1185.305
=2.81818182

Elanco Animal Health's current ratio of this year was 2.54806964. Elanco Animal Health's current ratio of last year was 2.81818182. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Elanco Animal Health's number of shares in issue this year was 497.7. Elanco Animal Health's number of shares in issue last year was 492.7. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2235.542/4085.661
=0.54716777

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2338.996/4080.205
=0.57325453

Elanco Animal Health's gross margin of this year was 0.54716777. Elanco Animal Health's gross margin of last year was 0.57325453. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=4085.661/13440.328
=0.30398522

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=4080.205/15097.48
=0.27025735

Elanco Animal Health's asset turnover of this year was 0.30398522. Elanco Animal Health's asset turnover of last year was 0.27025735. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+0+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Elanco Animal Health has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Elanco Animal Health  (STU:5EA) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Elanco Animal Health Piotroski F-Score Related Terms

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Elanco Animal Health Business Description

Traded in Other Exchanges
Address
2500 Innovation Way, Greenfield, IN, USA, 46140
Elanco Animal Health is an animal health company that is engaged in developing, manufacturing, and marketing pharma products for companion and food animals. It spun off from Eli Lilly in 2018 and acquired Janssen Animal Health in 2011, Novartis Animal Health in 2014, Boehringer Ingelheim Vetmedica in 2017, and Bayer Animal Health in 2020. The company's operations are conducted globally, and it sells its products in over 90 countries. It offers a range of food animal products used in cattle, sheep, goats, and swine production.

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