Virbac SA (VIRP) AI Stock Analysis

• Market Cap: €2.82B
• Dividend Yield: 0.43%
• Average Volume (3M): 4.26K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.56
• Revenue Growth: 12.07%
• EPS Growth: 20.48%
• Country: FR
• Employees: 6,365
• Sector: Healthcare
• Sector Strength: 50
• Industry: Drug Manufacturers - General
• EPS (TTM): 6.04
• Shares Outstanding: 8,390,660
• 10 Day Avg. Volume: 2,776
• 30 Day Avg. Volume: 4,264
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €377.00
• Price Target Upside: 10.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: €364.00 ▲(6.74% Upside)

Virbac SA's overall stock score reflects strong financial performance and a fair valuation. However, technical indicators suggest a cautious outlook with potential downward momentum. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Regional Growth

Europe and Latin America are posting solid growth rates of around +8%, indicating a strong start for Virbac.

Sales Performance

Virbac's 1Q25 sales figures came in at €375m, perfectly in line with expectations and mark an organic growth of +4.9%.

Negative Factors

Earnings Growth

A slowdown of earnings growth is likely to continue in H1-25 due to an unfavourable base effect.

Market Conditions

The Pacifique region, accounting for 8% of the group's sales, was primarily negatively impacted by Australia, where market conditions are unfavourable.

Virbac SA Business Overview & Revenue Model

Company Description

Virbac SA is a global animal health company headquartered in France, specializing in the development, production, and marketing of a wide range of veterinary products. Established in 1964, Virbac focuses primarily on companion animals, such as dogs and cats, as well as livestock, offering pharmaceuticals, vaccines, and diagnostic products. The company operates in various sectors including parasitology, dermatology, and nutrition, aiming to improve the health and well-being of animals worldwide.

How the Company Makes Money

Virbac generates revenue primarily through the sale of its veterinary products, which include pharmaceuticals, vaccines, and nutritional supplements for both companion animals and livestock. The company operates a diversified revenue model, with key revenue streams coming from prescription products, over-the-counter medicines, and specialized dietary products. Virbac's strategic partnerships with veterinary clinics, animal health distributors, and research institutions enhance its market reach and product development capabilities. Additionally, the company invests in research and development to innovate new treatments and expand its product portfolio, which contributes significantly to its earnings. Geographic expansion into emerging markets also plays a critical role in driving revenue growth.

Virbac SA Financial Statement Overview

Summary

Virbac SA demonstrates a strong financial profile with consistent revenue growth, robust profitability margins, and minimal leverage. The company effectively manages costs and utilizes shareholder equity efficiently, while maintaining solid cash flow generation.

Income Statement

Virbac SA demonstrates a strong income statement with consistent revenue growth over the years. Gross Profit Margin in 2024 is approximately 67.4%, reflecting efficient cost management. Net Profit Margin stands at about 10.4%, indicating a solid profitability level. EBIT Margin of 15.5% and EBITDA Margin of 20.4% showcase robust operational efficiency. Revenue grew by approximately 12.1% from 2023 to 2024, indicating a healthy upward trajectory. Overall, the company shows strong profitability and growth, with a continuous positive trend.

Balance Sheet

The balance sheet of Virbac SA is stable with a low Debt-to-Equity Ratio of 0.04, indicating minimal leverage and financial risk. Return on Equity (ROE) is approximately 13.9%, showcasing effective utilization of shareholder equity to generate profits. The Equity Ratio of 56.4% suggests a solid capital structure with a significant portion of assets financed by equity. These metrics indicate financial stability and a well-managed balance sheet with minimal debt risk.

Cash Flow

Virbac SA's cash flow statement shows solid cash generation capabilities with a Free Cash Flow Growth Rate of approximately 128.5% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is about 1.4, indicating good cash conversion. Free Cash Flow to Net Income Ratio stands at 0.93, reflecting efficient management of capital expenses. The company exhibits strong cash flow management, though a higher free cash flow conversion ratio would further enhance its cash flow position.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.25B	1.22B	1.06B	934.20M
Gross Profit	937.60M	422.67M	427.27M	378.38M	290.41M
EBITDA	284.85M	230.65M	215.55M	199.46M	231.67M
Net Income	145.29M	121.30M	121.97M	113.16M	136.04M
Balance Sheet
Total Assets	1.85B	1.46B	1.36B	1.22B	1.11B
Cash, Cash Equivalents and Short-Term Investments	149.63M	175.91M	177.38M	172.79M	181.89M
Total Debt	307.01M	120.11M	91.49M	95.37M	116.22M
Total Liabilities	805.12M	545.81M	521.17M	498.84M	454.28M
Stockholders Equity	1.04B	900.30M	839.33M	724.93M	620.97M
Cash Flow
Free Cash Flow	134.97M	59.06M	45.41M	79.13M	81.23M
Operating Cash Flow	204.22M	118.64M	98.98M	126.29M	110.22M
Investing Cash Flow	-428.69M	-121.87M	-54.83M	-106.22M	339.52M
Financing Cash Flow	138.59M	-2.56M	-34.76M	-33.07M	-341.19M

Virbac SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 341.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VIRP, the sentiment is Positive. The current price of 341 is above the 20-day moving average (MA) of 340.92, above the 50-day MA of 335.59, and above the 200-day MA of 318.11, indicating a bullish trend. The MACD of -1.64 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 93.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VIRP.

Virbac SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAN	79 Outperform	$105.45B	11.71	8.39%	4.49%	-9.82%	119.10%
VETO	72 Outperform	€898.79M	15.28	10.64%	1.18%	1.88%	5.79%
VIRP	70 Outperform	€2.82B	19.42	14.95%	0.43%	12.07%	20.48%
IPN	70 Outperform	€9.48B	21.16	10.82%	1.21%	9.57%	-34.30%
BOI	61 Neutral	€374.02M	32.70	2.94%	5.62%	-1.15%	-68.36%
Sector *	54 Neutral	€4.17B	12.59	-36.14%	2.46%	15.95%	-24.06%
MEDCL	53 Neutral	€588.82M	―		―	181.43%	28.76%