ELAN (Elanco Animal Health) 3-Year RORE % : -89.21% (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ELAN Elanco Animal Health Inc ELAN
66 GF Score
Price $26.19
GF Value $15.60
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Elanco Animal Health 3-Year RORE %?

Elanco Animal Health ELAN +0.92% 66 3-Year RORE % is -89.21 as of Mar. 2026. 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 940 Drug Manufacturers companies, Elanco Animal Health ranks worse than 89.36% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Elanco Animal Health's 3-Year RORE % for the quarter that ended in Mar. 2026 was -89.21%.

The industry rank for Elanco Animal Health's 3-Year RORE % or its related term are showing as below:

ELAN's 3-Year RORE % is ranked worse than
89.36% of 940 companies
in the Drug Manufacturers industry
Industry Median: 3.075 vs ELAN: -89.21

Elanco Animal Health  (NYSE:ELAN) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Elanco Animal Health 3-Year RORE % Related Terms


Elanco Animal Health 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Elanco Animal Health's 3-Year RORE % 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 3-Year RORE % Chart

Elanco Animal Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.38 -44.83 42.54 -41.71 -87.45

Elanco Animal Health Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year RORE % 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 -40.31 -56.77 -127.96 -87.45 -89.21

ELAN vs ALKS, HIMS, NBIX: 3-Year RORE % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Elanco Animal Health's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Elanco Animal Health's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Elanco Animal Health's 3-Year RORE % falls into.


ELAN
66GF Score
Elanco Animal Health Inc ELAN
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Elanco Animal Health 3-Year RORE % Calculation

Elanco Animal Health's 3-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( -0.5--2.65 )/( -2.41-0 )
=2.15/-2.41
=-89.21 %

* 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of -89.21 mean?
Elanco Animal Health (ELAN) has a 3-Year RORE % of -89.21 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Elanco Animal Health and its competitors. According to the industry distribution chart, Elanco Animal Health ranks #840 out of 940 companies in the Drug Manufacturers industry, placing it in the top 89.4%.
Is Elanco Animal Health's 3-Year RORE % too high?
Elanco Animal Health's current 3-Year RORE % is -89.21. Based on the distribution chart, Elanco Animal Health ranks #840 out of 940 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 3-Year RORE % compare to ALKS and HIMS?
According to the Drug Manufacturers industry distribution chart, Elanco Animal Health ranks #840 out of 940 companies for 3-Year RORE %. This places Elanco Animal Health in the lower half of its industry. The industry median 3-Year RORE % is 3.08. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Drug Manufacturers company?
The median 3-Year RORE % among Drug Manufacturers companies is 3.08, based on 940 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Elanco Animal Health and its competitors. For the Drug Manufacturers industry, the median 3-Year RORE % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elanco Animal Health's current 3-Year RORE % is -89.21. 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 $26.19 — trading 67.9% above its estimated fair value. The current 3-Year RORE % is -89.21. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Elanco Animal Health (ELAN), the current 3-Year RORE % is -89.21 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 $26.19 is trading 67.9% above its estimated GF Value™ of $15.60. GuruFocus considers Elanco Animal Health to be Significantly Overvalued.

Key valuation signals for ELAN:

  • 3-Year RORE %: -89.21
  • GF Value™: $15.60 vs. price of $26.19 (67.9% above fair value)
  • GF Score™: 66/100 with 5 warning signs

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 Business Description

Other Exchanges 5EA:Germany
Address 450 ELANCO CIRCLE, INDIANAPOLIS, IN, USA, 46221
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

3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$26.19
Price
$15.60
GF Value