📊 AI Stock Rating — Summary

Elanco reported quarterly revenue of $1.137 billion, a net loss of $34 million, and an EPS of -$0.07 for the quarter ending September 30, 2025. Despite the loss, the company generated $127 million in free cash flow, reflecting strong cash management. Year-over-year revenue shows signs of stability, with operating cash flow of $219 million confirming ongoing business operations support. However, profitability remains a concern due to persistent net losses. The balance sheet carries net debt of $3.519 billion, hinting at moderate leverage relative to total equity. The absence of dividends or stock repurchases suggests a focus on internal reinvestment or debt management over direct shareholder returns. Analyst price targets are up to $32, indicating potential upside from the current price context. Despite a challenging profit picture, cash flow health and balanced liabilities may present long-term stabilization prospects.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue of $1.137 billion indicates stability though not notable growth. The main driver is consistent market engagement, but further uptake or diversification appears necessary for robust growth.

Profitability — Score: 3/10

Persisting net losses result in negative EPS, highlighting challenges in operating efficiency. Improved cost management and strategic initiatives are crucial to achieving profitability.

Cash Flow Quality — Score: 7/10

Free cash flow of $127 million from robust operating cash flow underscores a strong liquidity position. No dividends or buybacks, but cash reserves remain healthy.

Leverage & Balance Sheet — Score: 5/10

With $6.802 billion in liabilities against $13.551 billion in assets, the company shows moderate leverage. Net debt stands at $3.519 billion, indicating a need for careful debt servicing.

Shareholder Returns — Score: 4/10

Without dividends or buybacks, direct returns are absent. The evaluation should consider recent or upcoming trading performance context as a potential return component.

Analyst Sentiment & Valuation — Score: 5/10

Analyst price targets range from $14 to $32, with a median of $25, suggesting room for potential price appreciation. Current valuations appear tentative, lacking definitive metrics.

⚠ AI-generated — informational only, not financial advice.