Virbac SA (VIRP) AI Stock Analysis

• Market Cap: €3.04B
• Dividend Yield: 0.4%
• Average Volume (3M): 5.22K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.58
• Revenue Growth: 12.07%
• EPS Growth: 20.48%
• Country: FR
• Employees: 6,365
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - General
• EPS (TTM): 6.04
• Shares Outstanding: 8,390,660
• 10 Day Avg. Volume: 5,879
• 30 Day Avg. Volume: 5,220
• PEG Ratio: 2.03
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.42
• 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: €390.00
• Price Target Upside: 7.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: €390.00 ▲(7.44%Upside)

Virbac SA's strong financial performance is the primary driver of its overall stock score, supported by stable cash flows and low leverage. Although the technical analysis indicates potential overbought conditions, the general momentum remains positive. The fair valuation further bolsters the company's attractiveness, especially for growth-focused investors.

Positive Factors

Regional Performance

Europe and Latin America are demonstrating solid growth rates of around 8%, contributing positively to Virbac's overall performance.

Sales Growth

Virbac's first-quarter sales figures showed organic growth of 4.9%, aligning with expectations and indicating a promising start to the year.

Negative Factors

Earnings Growth

A slowdown in earnings growth is anticipated to continue due to an unfavourable base effect, which may affect investor sentiment.

Regional Challenges

Australia's market conditions are unfavourable, causing a sharp decline of 15% in the region and negatively impacting Virbac's overall sales.

Virbac SA Business Overview & Revenue Model

Company Description

Virbac SA is a global pharmaceutical company specializing in the development, manufacture, and commercialization of a broad range of products for animal health. The company operates in various sectors, including companion animals and food-producing animals, providing innovative solutions for the prevention and treatment of diseases across different species. Virbac's core products include vaccines, parasiticides, antibiotics, and dermatological products designed to enhance animal health and well-being.

How the Company Makes Money

Virbac SA generates revenue primarily through the sale of its animal health products, which are distributed globally to veterinary professionals, farmers, and pet owners. The company's revenue streams are diversified across multiple product categories, including pharmaceuticals, vaccines, and nutritional products for both companion and food-producing animals. Significant earnings are derived from its strong presence in key markets such as Europe, North America, and Asia Pacific. Additionally, strategic partnerships and collaborations with research institutions and distribution networks enhance its market reach and contribute to its revenue growth. Virbac's ability to innovate and introduce new products to the market also plays a crucial role in maintaining its competitive edge and financial performance.

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: 363.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 363 is above the 20-day moving average (MA) of 343.42, above the 50-day MA of 329.04, and above the 200-day MA of 319.98, indicating a bullish trend. The MACD of 10.02 indicates Negative momentum. The RSI at 69.60 is Neutral, neither overbought nor oversold. The STOCH value of 89.70 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
VIRP	76 Outperform	€3.04B	20.92	14.95%	0.40%	12.07%	20.48%
VETO	76 Outperform	€908.25M	15.44	10.64%	1.16%	1.88%	5.79%
SAN	71 Outperform	$103.79B	19.16	7.34%	4.61%	-4.62%	2.88%
IPN	67 Neutral	€9.25B	26.75	8.89%	1.25%	8.73%	-46.34%
BOI	62 Neutral	€384.53M	33.62	2.94%	5.47%	-1.15%	-68.36%
Sector *	52 Neutral	$7.65B	0.16	-63.14%	2.08%	16.38%	0.82%
MEDCL	37 Underperform	€565.99M	―		―	-1.66%	-6.31%