ELANElanco Animal Health Inc

Pharmaceutical Preparations

Revenue: $4.7B; 6.2% YoY
Operating margin: —
EBITDA: —
Market cap: $11.5B
Employees: 1,000; $5M revenue each
Net debt / EBITDA: —; $3.3B net debt
AI in 10-K: 2.1; mentions per 10K words

Takeover score 1 of 13

Fixable underperformance 1 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$14M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
36% of assets
Over 40% of assets
Shareholder dissentNo
82% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$5M · 98th pct
Bottom quartile of its SIC industry
Quiet on AINo
2.1 per 10K words · 56th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedNo
$11.5B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
$3M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$4.8B	$4.4B	$4.4B	$4.4B	$4.7B	6.2%
Net income	−$483M	−$78M	−$1.2B	$338M	−$232M	169%
Operating cash flow	$483M	$452M	$271M	$541M	$560M	3.5%
Capex	$159M	$171M	$140M	$147M	$276M	88%
Stock-based comp	$66M	$59M	$46M	$55M	$68M	24%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Dec 22, 2022	Sachem Head Capital Management LP	SC 13D/A	2.0%	Passive
Sep 9, 2022	Sachem Head Capital Management LP	SC 13D/A	6.0%	Passive
Dec 15, 2020	Sachem Head Capital Management LP	SC 13D/A	5.9%	Active
Nov 12, 2020	Sachem Head Capital Management LP	SC 13D/A	5.9%	Active
Oct 7, 2020	Sachem Head Capital Management LP	SC 13D	5.9%	Active

Insider trading

Open-market buys, 12 mo: $3M · 11
Open-market sells, 12 mo: $100K · 1
Net: $3M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$15M	$38M	74	188
FY2024	$15M	$9M	39	148
FY2023	$14M	$17M	49	137
FY2022	$13M	−$2M	40	136
FY2021	$12M	$17M	93	126