The stock has a beta of 1.1. Institutional investors own 45.93% of shares outstanding. The short interest as a percent of float as of 11/30/11 was 1.44. ELN does not pay a dividend.
During the past 5 years, revenue has grown at 19% per year. It is trading at 6 times its sales and at 8.07 times its book value. The company has steadily diminished its debt since 2006, and current total debt from its last 10-K is at 1,270 million. ELN has a debt to capital ratio of 57.44%, which is fairly elevated and shows that the company is highly leveraged. The interest coverage ratio (EBIT/interest expense), however, is 17.52, signaling that the company can comfortably take on the debt.
Operating margin, at 65.32%, and net profit margin, at 49.01%, are among the highest for the Biotechnology and Drugs industry.
ELN's profitability is highly dependent on expanding its Tysabri sales. Tysabri is a multiple scleroris (MS) drug. However, analysts foresee increasing competition in the MS market which can negatively affect Tysabri sales and ELN's profits.
ELN is one of the top performing stocks of the last 52 weeks, up 117.95%. Expect it to fall back down to 12 and to then continue moving up. Keep an eye on ELN for a cup and handle pattern.
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| Monthly chart. Top trendline is resistance. |
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| Weekly chart. Strong channel up. White horizontal line is resistance, as price gapped down from this point before. |
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| Notice the strong run up and the cup pattern that has formed in the past 4-5 months. |
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| 1-year daily chart. ELN has been showing increasing strength compared to the market. |
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