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Elanco Animal HealthELAN -2.67%66 3-Year ROIIC % is 5.71 as of Dec. 2025, which is 501% above its 10-year median of 0.95. GuruFocus rates ELAN with a GF Score™ of 66/100 and a GF Value™ of $15.60 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 946 Drug Manufacturers companies, Elanco Animal Health ranks better than 52.96% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Elanco Animal Health's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 5.71%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Elanco Animal Health's 3-Year ROIIC % or its related term are showing as below:
ELAN's 3-Year ROIIC % is ranked better than 52.96% of 946
companies
in the Drug Manufacturers industry
Industry Median: 3.635
vs ELAN: 5.71
Elanco Animal Health (NYSE:ELAN) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Elanco Animal Health 3-Year ROIIC % Related Terms
Elanco Animal Health 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Elanco Animal Health's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Elanco Animal Health's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elanco Animal Health's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Elanco Animal Health's 3-Year ROIIC % falls into.
Elanco Animal Health's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 252 (Dec. 2025) - 384 (Dec. 2022) )
/
( 12445 (Dec. 2025) - 14756 (Dec. 2022) )
=
-132
/
-2311
=
5.71%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Elanco Animal Health (ELAN) has a 3-Year ROIIC % of 5.71 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Elanco Animal Health and its competitors. This is 501% above median its historical median of 0.95. According to the industry distribution chart, Elanco Animal Health ranks #445 out of 946 companies in the Drug Manufacturers industry, placing it in the top 47%.
Is Elanco Animal Health's 3-Year ROIIC % too high?
Elanco Animal Health's current 3-Year ROIIC % of 5.71 is 501% above median its 10-year median of 0.95. The Drug Manufacturers industry median 3-Year ROIIC % is 3.64. Elanco Animal Health's value of 5.71 is 57.1% above this industry median. Based on the distribution chart, Elanco Animal Health ranks #445 out of 946 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 3-Year ROIIC % compare to ALKS and HIMS?
According to the Drug Manufacturers industry distribution chart, Elanco Animal Health ranks #445 out of 946 companies for 3-Year ROIIC %. This puts Elanco Animal Health in the upper half of its industry. The industry median 3-Year ROIIC % is 3.64. Elanco Animal Health's value of 5.71 is 57.1% above this benchmark. While the company's 10-year median is 0.95 vs. the industry median of 3.64, 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 3-Year ROIIC % for a Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.64, based on 946 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Elanco Animal Health's current 3-Year ROIIC % of 5.71 is 57.1% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Elanco Animal Health and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elanco Animal Health's current 3-Year ROIIC % is 5.71, which is 501% above median its own 10-year median of 0.95. 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 $15.60, compared to a current price of $25.14 — trading 61.2% above its estimated fair value. The current 3-Year ROIIC % is 5.71, which is 501% above median its 10-year median of 0.95 and 57.1% above the Drug Manufacturers industry median of 3.64. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Elanco Animal Health (ELAN), the current 3-Year ROIIC % is 5.71 as of Dec. 2025. 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 $25.14 is trading 61.2% above its estimated GF Value™ of $15.60.
GuruFocus considers Elanco Animal Health to be Significantly Overvalued.
Key valuation signals for ELAN:
3-Year ROIIC %: 5.71 (501% above median its 10-year median of 0.95)
GF Value™: $15.60 vs. price of $25.14 (61.2% above fair value)
Industry Position: 57.1% above the Drug Manufacturers median (#445 of 946)
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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