Phibro Animal Health (PAHC)
NASDAQ:PAHC
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Phibro Animal Health
(NASDAQ:PAHC)
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Rating:58Neutral
Price Target:
$38.00
▼(-33.42% Downside)
Action:Reiterated
Date:05/12/26
The score is anchored by improving fundamentals and strong, guidance-backed earnings momentum, but is capped by weak cash-flow conversion and a debt-heavy balance sheet. Technicals are the biggest near-term drag, with the stock in a pronounced downtrend despite oversold signals; valuation and dividend are only modestly supportive.
Positive Factors
Animal Health segment strength & MFA integration
Durable core strength: Animal Health delivered high single-digit revenue share gains and large EBITDA expansion, driven by a full quarter contribution from the MFA portfolio. This indicates sustainable, higher-margin revenue mix and successful commercial integration that should support margins over the next several quarters.
Negative Factors
Weak cash-flow conversion and volatile FCF
Earnings are not reliably converting to cash, reducing the company's ability to deleverage, fund capex or sustain buybacks/dividends without external funding. Historical FCF volatility plus recent inventory-driven OCF pressure creates a persistent constraint on financial flexibility for months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Animal Health segment strength & MFA integration
Durable core strength: Animal Health delivered high single-digit revenue share gains and large EBITDA expansion, driven by a full quarter contribution from the MFA portfolio. This indicates sustainable, higher-margin revenue mix and successful commercial integration that should support margins over the next several quarters.
Read all positive factors
Phibro Animal Health Key Performance Indicators (KPIs)
Phibro Animal Health (PAHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend Yield1.28%
Average Volume (3M)297.31K
Price to Earnings (P/E)23.3
Beta (1Y)0.91
Revenue Growth25.98%
EPS Growth199.43%
CountryUS
Employees1,940
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.34
Shares Outstanding20,623,682
10 Day Avg. Volume270,824
30 Day Avg. Volume297,314
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)3.62
Price to Sales (P/S)0.80
P/FCF Ratio24.73
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit4.43
Enterprise Value/Ebitda9.87
Forecast
1Y Price Target
$62.00Price Target Upside8.64% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.05
Revenue Forecast (FY)$1.49B
Phibro Animal Health Business Overview & Revenue Model
Company Description
Phibro Animal Health Corporation develops, manufactures, and supplies a range of animal health and mineral nutrition products for livestock primarily in the United States. It operates through three segments: Animal Health, Mineral Nutrition, and P...
How the Company Makes Money
PAHC makes money primarily by selling animal health and nutrition products to the commercial livestock and poultry supply chain. Its revenue model is product-sales driven and is typically organized around several core streams: (1) Animal Health: s...
Phibro Animal Health Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum driven primarily by the Animal Health segment, successful MFA integration, robust revenue (+21% Q2) and adjusted EBITDA growth (+41%), and an upward revision to FY26 guidance across sales, EBITDA and adjusted net income. Offsetting items include a one-time/timing-related $10M pullback in legacy MFA sales, a notable decline in Performance Products (-10%), inventory build-up that pressured cash flow, higher SG&A and interest costs, and elevated leverage metrics. Overall the positives (strong top-line & margin expansion, raised guidance, integration execution and product traction) materially outweigh the transitory challenges and modest near-term headwinds.Positive Updates
Strong Consolidated Revenue Growth
Consolidated net sales for Q2 ended Dec 31, 2025 were $373.9M, up $64.6M or 21% year-over-year, driven by demand and favorable mix.
Negative Updates
Legacy MFA Timing-Related Pullback
Legacy MFA net sales declined 5% in the quarter due to timing of inventory purchases by a large customer (roughly a $10M negative impact). Company expects this timing-related volume to return in H2 but it caused near-term lumpiness.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Consolidated Revenue Growth
Consolidated net sales for Q2 ended Dec 31, 2025 were $373.9M, up $64.6M or 21% year-over-year, driven by demand and favorable mix.
Read all positive updates
Company Guidance
Phibro raised its fiscal 2026 guidance: net sales to $1.450–$1.500 billion (from $1.425–$1.475B), implying 12%–16% growth (midpoint ~14%); total adjusted EBITDA to $245–$255 million (from $230–$240M), implying 33%–39% growth (midpoint ~36%); and adjusted net income to $120–$127 million (from $108–$115M), implying ~41%–49% growth (midpoint ~45%). Management said the raise reflects strong Q2 results (Q2 consolidated sales $373.9M, animal health sales $290M, animal health adjusted EBITDA $82.2M; adjusted EBITDA +$19.9M or +41%; adjusted net income +60%; adj. diluted EPS +58%) and continued MFA contribution and Phibro Forward progress. Key capitalization and cash metrics cited were trailing‑12‑month adjusted EBITDA $235M, total debt $737M (gross leverage 3.1x), net debt $662M (net leverage 2.8x), cash & short‑term investments $74.5M, 12‑month free cash flow $47M, operating cash flow $93M, capex $46M, and a quarterly dividend of $0.12 per share ($4.9M); GAAP EPS guidance assumes constant currency and includes one‑time Phibro Forward costs.Phibro Animal Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.50B | 1.30B | 1.02B | 977.89M | 942.26M | 833.35M |
| Gross Profit | 488.12M | 399.94M | 313.09M | 298.24M | 285.40M | 271.38M |
| EBITDA | 219.25M | 146.85M | 69.06M | 106.03M | 117.13M | 110.21M |
| Net Income | 95.23M | 48.26M | 2.42M | 32.61M | 49.17M | 54.38M |
Balance Sheet | ||||||
| Total Assets | 1.45B | 1.36B | 982.18M | 971.40M | 931.70M | 841.33M |
| Cash, Cash Equivalents and Short-Term Investments | 77.45M | 77.04M | 114.61M | 81.28M | 91.25M | 93.21M |
| Total Debt | 597.68M | 761.55M | 525.46M | 509.97M | 470.48M | 426.71M |
| Total Liabilities | 1.08B | 1.08B | 725.54M | 688.89M | 669.26M | 602.80M |
| Stockholders Equity | 361.83M | 285.68M | 256.64M | 282.51M | 262.44M | 238.53M |
Cash Flow | ||||||
| Free Cash Flow | 12.77M | 41.83M | 46.36M | -38.48M | -5.39M | 18.99M |
| Operating Cash Flow | 66.13M | 80.12M | 87.59M | 13.31M | 31.65M | 48.31M |
| Investing Cash Flow | -62.04M | -288.69M | -48.19M | -74.02M | -22.58M | -18.58M |
| Financing Cash Flow | -12.71M | 207.13M | -6.77M | 26.99M | 16.34M | -17.00M |
Phibro Animal Health Technical Analysis
Positive
57.07
Price Trends
53.23
Positive
46.57
Positive
41.21
Positive
Market Momentum
1.40
Positive
55.68
Neutral
33.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAHC, the sentiment is Positive. The current price of 57.07 is above the 20-day moving average (MA) of 55.82, above the 50-day MA of 53.23, and above the 200-day MA of 41.21, indicating a bullish trend. The MACD of 1.40 indicates Positive momentum. The RSI at 55.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAHC.
Phibro Animal Health Risk Analysis
Phibro Animal Health disclosed 65 risk factors in its most recent earnings report. Phibro Animal Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Phibro Animal Health Peers Comparison
UnderperformOutperform
Sector (51)
PAHC
Phibro Animal Health
36.58
12.30
50.68%
ZTS
Zoetis
76.94
-81.02
-51.29%
ELAN
Elanco Animal Health
21.43
8.41
64.59%
Phibro Animal Health Corporate Events
Dividends
Phibro Animal Health Declares Quarterly Cash Dividend
Positive
May 5, 2026
On May 5, 2026, Phibro Animal Health Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share on both its Class A and Class B common stock. The dividend will be paid on June 24, 2026, to shareholders ...
Business Operations and StrategyPrivate Placements and Financing
Phibro Animal Health Expands Revolving Credit Facility Commitment
Positive
Apr 30, 2026
On April 28, 2026, Phibro Animal Health Corporation amended its existing credit agreement with Coöperatieve Rabobank U.A., New York Branch and a syndicate of lenders, increasing its revolving credit commitment by $125 million, from $310 milli...
Business Operations and StrategyRegulatory Filings and Compliance
Brazil Antimicrobial Feed Additive Ban Spurs Phibro Response
Negative
Apr 27, 2026
On April 27, 2026, Brazil’s Ministry of Agriculture and Livestock issued Ordinance No. 1617, banning the import, manufacture, marketing and use of performance-enhancing feed additives containing medically important antimicrobials, including ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.