Elanco Animal HealthELAN +0.81%66 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates ELAN with a GF Score™ of 66/100 and a GF Value™ of $15.59 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 901 Drug Manufacturers companies, Elanco Animal Health ranks worse than 110987.68% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Elanco Animal Health's annualized net income for the quarter that ended in Mar. 2026 was $228 Mil. Elanco Animal Health's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-1,544 Mil. Therefore, Elanco Animal Health's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Elanco Animal Health's Return-on-Tangible-Equity or its related term are showing as below:
During the past 11 years, Elanco Animal Health's highest Return-on-Tangible-Equity was 9.24%. The lowest was -15.66%. And the median was -2.62%.
ELAN's Return-on-Tangible-Equity is not ranked *
in the Drug Manufacturers industry.
Industry Median: 7.9 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Elanco Animal Health (NYSE:ELAN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Elanco Animal Health Return-on-Tangible-Equity Related Terms
Elanco Animal Health Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Elanco Animal Health's Return-on-Tangible-Equity 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.
Elanco Animal Health Return-on-Tangible-Equity Chart
ELAN vs ALKS, HIMS, NBIX: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Elanco Animal Health's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elanco Animal Health's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Elanco Animal Health's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Elanco Animal Health (ELAN) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Elanco Animal Health and its competitors. According to the industry distribution chart, Elanco Animal Health ranks #999999 out of 901 companies in the Drug Manufacturers industry.
Is Elanco Animal Health's Return-on-Tangible-Equity too high?
Elanco Animal Health's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Elanco Animal Health ranks #999999 out of 901 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. 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 Return-on-Tangible-Equity compare to ALKS and HIMS?
According to the Drug Manufacturers industry distribution chart, Elanco Animal Health ranks #999999 out of 901 companies for Return-on-Tangible-Equity. This places Elanco Animal Health in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.90. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.90, based on 901 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Elanco Animal Health and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elanco Animal Health's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 $15.59, compared to a current price of $24.82 — trading 59.2% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Elanco Animal Health's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Elanco Animal Health (ELAN), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 $24.82 is trading 59.2% above its estimated GF Value™ of $15.59.
GuruFocus considers Elanco Animal Health to be Significantly Overvalued.
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
Get the complete analysis for ELAN
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ELAN has been successfully added to your 
