Elanco Animal HealthELAN +0.82%66 Gross Margin % is 57.26% as of Mar. 2026, which is 7% above its 10-year median of 53.51. GuruFocus rates ELAN with a GF Score™ of 66/100 and a GF Value™ of $15.57 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 935 Drug Manufacturers companies, Elanco Animal Health ranks better than 60.96% on this metric.
The historical rank and industry rank for Elanco Animal Health's Gross Margin % or its related term are showing as below:
ELAN'
s Gross Margin % Range Over the Past 10 Years
Min: 48.29 Med: 53.51 Max: 56.63
Current: 55.06
During the past 11 years, the highestGross Margin % of Elanco Animal Health was 56.63%. The lowest was 48.29%. And the median was 53.51%.
ELAN's Gross Margin % is ranked better than 60.96% of 935
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs ELAN: 55.06
Elanco Animal Health had a gross margin of 57.26% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Elanco Animal Health was 1.60% per year.
Elanco Animal Health (NYSE:ELAN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Elanco Animal Health had a gross margin of 57.26% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Elanco Animal Health Gross Margin % Related Terms
Elanco Animal Health Gross Margin % Historical Data
* Premium members only.
The historical data trend for Elanco Animal Health's Gross Margin % 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.
ELAN vs ALKS, HIMS, NBIX: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Elanco Animal Health's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elanco Animal Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Elanco Animal Health's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Elanco Animal Health (ELAN) has a Gross Margin % of 57.26% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Elanco Animal Health and its competitors. This is near median its historical median of 53.51. Over the past decade, Elanco Animal Health's Gross Margin % has ranged from 48.29 to 56.63. According to the industry distribution chart, Elanco Animal Health ranks #365 out of 935 companies in the Drug Manufacturers industry, placing it in the top 39%.
Is Elanco Animal Health's Gross Margin % too high?
Elanco Animal Health's current Gross Margin % of 57.26% is near median its 10-year median of 53.51. Over the past 10 years, this metric has ranged from a low of 48.29 to a high of 56.63. The Drug Manufacturers industry median Gross Margin % is 48.54. Elanco Animal Health's value of 57.26% is 18% above this industry median. Based on the distribution chart, Elanco Animal Health ranks #365 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Elanco Animal Health has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elanco Animal Health's Gross Margin % compare to ALKS and HIMS?
According to the Drug Manufacturers industry distribution chart, Elanco Animal Health ranks #365 out of 935 companies for Gross Margin %. This puts Elanco Animal Health in the upper half of its industry. The industry median Gross Margin % is 48.54. Elanco Animal Health's value of 57.26% is 18% above this benchmark. Historically, Elanco Animal Health's own Gross Margin % has ranged from 48.29 to 56.63 over the past decade. While the company's 10-year median is 53.51 vs. the industry median of 48.54, Elanco Animal Health has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Elanco Animal Health's current Gross Margin % of 57.26% is 18% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Elanco Animal Health and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elanco Animal Health's current Gross Margin % is 57.26%, which is near median its own 10-year median of 53.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elanco Animal Health stock overvalued right now?
Based on GuruFocus' analysis, Elanco Animal Health (ELAN) is currently considered Significantly Overvalued. The stock's GF Value™ is $15.57, compared to a current price of $24.57 — trading 57.8% above its estimated fair value. The current Gross Margin % is 57.26%, which is near median its 10-year median of 53.51 and 18% above the Drug Manufacturers industry median of 48.54. Elanco Animal Health's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Elanco Animal Health (ELAN), the current Gross Margin % is 57.26% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Elanco Animal Health (ELAN) Overvalued in 2026?
Based on GuruFocus' analysis, Elanco Animal Health stock appears to be overvalued.
The current stock price of $24.57 is trading 57.8% above its estimated GF Value™ of $15.57.
GuruFocus considers Elanco Animal Health to be Significantly Overvalued.
Key valuation signals for ELAN:
Gross Margin %: 57.26% (near median its 10-year median of 53.51)
GF Value™: $15.57 vs. price of $24.57 (57.8% above fair value)
Industry Position: 18% above the Drug Manufacturers median (#365 of 935)
No single metric tells the full story. See the ELAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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, poultry, and swine production.
66GF Score
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