ELN  Elan Corporation Plc

Exchange

NYSE

Sector

Consumer Durables

Industry

Major Pharmaceuticals

Market Cap.

9.293B

Vuru Grade

17.88/100

Current Price

$18.12
0.00 (0.00%)

Company Metrics

  • P/E 4.07
  • P/S 88.25
  • P/B 4.45
  • EPS 0
  • Cash ROIC -17.28%
  • Cash Ratio -
  • Dividend 0 / 0%
  • Avg. Vol. 360,607.00
  • Shares 512.86M
  • Market Cap. 9.293B

Company Description

Elan Corporation, plc operates as a neuroscience-based biotechnology company primarily in Ireland and the United States. It operates in two segments, BioNeurology and Elan Drug Technologies (EDT). The BioNeurology segment engages in the research, development, and commercial activities primarily in the areas of Alzheimer's disease, Parkinson's disease, multiple sclerosis (MS), and Crohn's disease. ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ELN to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ELN's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$18.12 Current Price

$-0.01 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$- NCA Price

Overvalued by 100.00%


Very Poor Cash Return on Invested Capital over the past 5 years

ELN has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ELN has lost $17.28 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -150.00M 43.20M -3.02M -6.20M -536,860.00
divided by
Invested Capital 1.21B 681.30M 10.19M 12.23M -
Cash ROIC -12.44% 6.34% -29.62% -50.68% -

Very Poor Return on Equity over the past 5 years

ELN has shown an inability to deliver results for shareholders. This could be due to poor management, ELN operating in a highly competitive industry, or having a weak business in general.

ELN has generated a $10.28 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 560.50M -137.40M -9.24M -5.08M -10.23M
divided by
Stockholders' Equity 801.80M 618.20M 14.21M 14.92M -
Return on Equity 69.91% -22.23% -65.07% -34.03% -

Poor Business Performance over the past 10 years

ELN's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

ELN has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -272.70M -196.10M -253.10M -129.80M 27.30M -150.00M 43.20M -3.02M -6.20M -536,860.00

Very Weak Balance Sheet

ELN is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of ELN's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 1.52B 700.40M 405.80M 843.60M 424.50M 272.00M 599.20M 4.02M 2.69M -
Current Assets 1.76B 916.40M 762.00M 1.16B 920.50M 518.00M 1.41B 13.13M 14.48M -
Total Assets 2.75B 1.78B 1.87B 2.35B 2.02B 1.75B 1.64B 17.68M 19.46M -
Current Liabilities 851.50M 210.80M 280.30M 250.50M 481.70M 276.30M 359.70M 3.48M 4.53M -
Total Liabilities 2.66B 2.02B 2.10B 1.85B 1.82B 952.00M 1.02B 3.48M 4.53M -
Stockholder' Equity 85.10M -234.70M -232.20M 494.20M 194.30M 801.80M 618.20M 14.21M 14.92M -
Current Ratio 2.06 4.35 2.72 4.63 1.91 1.87 3.92 3.77 3.19 -
TL-to-TA 0.97 1.13 1.12 0.79 0.90 0.54 0.62 0.20 0.23 -

Consistent Reinvestment of Profits over the past 10 years

ELN has consistently retained profits. This may put ELN in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, ELN can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -5.26B -5.67B -5.74B -5.92B -6.24B -5.68B 273.90M -9.24M -5.08M -
Retained Earnings Growth - -7.91% -1.25% -3.07% -5.49% 8.98% 104.82% -103.37% 45.07% 100.00%

Erratic Net Profit Margins over the past 10 years

ELN has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -267.30M -405.00M -71.00M -176.20M -324.70M 560.50M -137.40M -9.24M -5.08M -10.23M
divided by
Revenue 560.40M 759.40M 1.00B 1.11B 1.17B 1.25B 200,000.00 17.19M 18.43M -
Net Profit Margin -47.70% -53.33% -7.10% -15.83% -27.76% 44.98% -68,700.00% -53.76% -27.56% -

Varying Pricing Power over the past 10 years

ELN has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$43.13 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 349.20M 421.50M 506.80M 552.30M 586.40M 1.01B - 6.92M 7.64M -
divided by
Revenue 560.40M 759.40M 1.00B 1.11B 1.17B 1.25B 200,000.00 17.19M 18.43M -
Gross Margin 62.31% 55.50% 50.67% 49.62% 50.13% 81.34% - 40.23% 41.48% -

Low Capital Intensity over the past 10 years

ELN has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that ELN may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

5.32% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 34.00M 28.60M 58.80M 43.50M 40.90M 29.80M 12.10M 766,244.00 215,018.00 -
divided by
Net Income -267.30M -405.00M -71.00M -176.20M -324.70M 560.50M -137.40M -9.24M -5.08M -10.23M
Capital Expenditure Ratio -12.72% -7.06% -82.82% -24.69% -12.60% 5.32% -8.81% -8.29% -4.23% -

No Dividend History over the past 10 years

ELN has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 433.30M 468.30M 473.50M 506.80M 584.90M 593.50M 592.40M 58.41M 62.28M -
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 14.75 21.72 5.77 6.41 5.71 13.74 10.04 18.12 0.34 0.01
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

ELN has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 433.30M 468.30M 473.50M 506.80M 584.90M 593.50M 592.40M 58.41M 62.28M -
Stock Bought Back - -7.47% -1.10% -6.57% -13.35% -1.45% 0.19% 914.18% -6.21% -
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