Phibro Animal Health (PAHC) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 1.28%
• Average Volume (3M): 264.44K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.06
• Revenue Growth: 33.71%
• EPS Growth: 289.48%
• Country: US
• Employees: 1,940
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.87
• Shares Outstanding: 20,623,682
• 10 Day Avg. Volume: 216,221
• 30 Day Avg. Volume: 264,445
• PEG Ratio: 0.01
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 24.73
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 11.85
• 1Y Price Target: $48.33
• Price Target Upside: -11.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.95
• Revenue Forecast (FY): $1.48B

• Rating: 74 Outperform
• Price Target: $57.00 ▲(4.51% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by strong technical momentum and a bullish earnings update (raised guidance and strong segment performance). Financial performance is improving but constrained by leverage and historical volatility, while valuation is only fair with a modest dividend yield.

Positive Factors

Revenue Growth & Recovery

Sustained top-line expansion across several years and into the trailing twelve months demonstrates durable market demand and successful commercial execution. Higher scale supports investment in R&D, distribution and integration of acquisitions, enabling margin recovery and long-term competitive positioning.

Animal Health Segment Strength

Outperformance in the Animal Health segment, including full-quarter MFA contribution and share gains in key categories, reflects durable demand for vaccines and disease-prevention products. A stronger, higher-margin core improves earnings resilience and underpins long-term organic growth and cross-sell opportunities.

Improving Cash Generation

Positive and growing free cash flow and rising adjusted EBITDA indicate improving cash conversion and internal funding capacity. This trend enhances ability to fund capex, pay a modest dividend, and deleverage over time—provided operating cash conversion remains consistent.

Negative Factors

Elevated Leverage

High absolute debt and leverage ratios constrain financial flexibility and increase sensitivity to interest-rate and cash-flow swings. Elevated leverage limits capacity for opportunistic investment or large R&D spend and makes sustained free cash flow generation critical to reduce refinancing and credit risk.

Volatile Margins & Cash Conversion

Historical volatility in margins and inconsistent free cash flow across cycles signals that profitability and cash conversion are sensitive to mix, timing and cost shifts. This undermines predictability of earnings and the durability of recent margin expansion without continued higher-margin mix or structural cost improvements.

Working Capital Pressure

Proactive inventory stocking tied up cash and pressured working capital, which is acute given the company’s leverage. Persistent inventory or customer timing effects could impede deleveraging, increase financing costs, and magnify earnings swings if demand or tariff expectations shift.

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 Performance Products. The company develops, manufactures, and markets products for a range of food animals, including poultry, swine, beef and dairy cattle, and aquaculture. Its animal health products also comprise antibacterials that are biological or chemical products used in the animal health industry to treat or to prevent bacterial diseases; anticoccidials primarily used to prevent and control the disease coccidiosis in poultry and cattle; anthelmintics to treat infestations of parasitic intestinal worms; and anti-bloat treatment products for cattle to control bloat in animals grazing on legume or wheat-pasture. In addition, the company offers nutritional specialty products, which enhance nutrition to help improve health and performance; and vaccines to prevent diseases primarily for the poultry and swine markets. Further, it manufactures and markets formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds; and various specialty ingredients for use in the personal care, industrial chemical, and chemical catalyst industries. The company sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle integrators, as well as through commercial animal feed manufacturers, wholesalers, and distributors. It operates in the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was incorporated in 2014 and is headquartered in Teaneck, New Jersey.

How the Company Makes Money

Phibro Animal Health generates revenue through the sale of its products across its three business segments. The Animal Health segment, which includes vaccines and pharmaceuticals, constitutes a significant portion of its earnings, driven by demand for improved animal care and disease prevention. The Mineral Nutrition segment provides essential minerals and nutritional products that are crucial for animal growth and productivity. The Performance Products segment contributes to revenue through specialty products used in various industries. Phibro also benefits from strategic partnerships with distributors and other companies in the agricultural sector, enhancing its market reach and sales effectiveness. Additionally, the company invests in research and development to innovate and expand its product offerings, further supporting its revenue generation efforts.

Phibro Animal Health Financial Statement Overview

Summary

Improving fundamentals with rising revenue and a strong TTM rebound in profitability (net margin ~6.3%, EBIT margin ~8.3%) plus positive recent free cash flow. Offsets are elevated leverage (debt-to-equity still high) and historically volatile margins and cash-flow consistency.

Income Statement

PAHC shows steady top-line expansion, with revenue up from ~$833M (2021) to $1.296B (FY2025) and $1.464B in TTM (Trailing-Twelve-Months). Profitability has meaningfully improved versus the very weak FY2024, with net margin recovering to ~3.7% (FY2025) and ~6.3% in TTM, alongside stronger operating profitability (EBIT margin ~8.3% TTM). The main weakness is volatility: margins dipped sharply in FY2024 (near break-even net profitability), and while the TTM rebound is strong, consistency across cycles remains a key watch item.

Balance Sheet

Leverage is the key constraint. Debt remains high relative to equity, with debt-to-equity at ~2.67x in FY2025 and still elevated at ~1.82x in TTM (Trailing-Twelve-Months). While returns on equity look strong in TTM (~31%), that is helped by the low equity base and higher leverage, which increases financial risk. Positively, total assets have grown over time and leverage has improved from FY2025 to TTM, but the balance sheet is still more aggressive than ideal for a stable risk profile.

Cash Flow

Cash generation is improving, with positive free cash flow in FY2024, FY2025, and TTM (Trailing-Twelve-Months), and a strong TTM free-cash-flow increase (~38%). However, cash conversion remains a concern: operating cash flow is modest versus profitability and debt load (operating cash flow coverage ~0.27x in FY2025 and TTM), and free cash flow has been inconsistent historically (negative in FY2022 and FY2023). Overall, the recent trend is constructive, but durability through weaker periods is not fully proven.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.46B	1.30B	1.02B	977.89M	942.26M	833.35M
Gross Profit	467.02M	399.94M	313.09M	298.24M	285.40M	271.38M
EBITDA	225.98M	146.85M	69.06M	106.03M	117.13M	110.21M
Net Income	92.09M	48.26M	2.42M	32.61M	49.17M	54.38M
Balance Sheet
Total Assets	1.41B	1.36B	982.18M	971.40M	931.70M	841.33M
Cash, Cash Equivalents and Short-Term Investments	74.51M	77.04M	114.61M	81.28M	91.25M	93.21M
Total Debt	603.60M	761.55M	525.46M	509.97M	470.48M	426.71M
Total Liabilities	1.07B	1.08B	725.54M	688.89M	669.26M	602.80M
Stockholders Equity	332.36M	285.68M	256.64M	282.51M	262.44M	238.53M
Cash Flow
Free Cash Flow	47.29M	41.83M	46.36M	-38.48M	-5.39M	18.99M
Operating Cash Flow	93.08M	80.12M	87.59M	13.31M	31.65M	48.31M
Investing Cash Flow	-63.48M	-288.69M	-48.19M	-74.02M	-22.58M	-18.58M
Financing Cash Flow	-42.63M	207.13M	-6.77M	26.99M	16.34M	-17.00M

Phibro Animal Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 54.54 is above the 20-day moving average (MA) of 50.69, above the 50-day MA of 43.85, and above the 200-day MA of 36.40, indicating a bullish trend. The MACD of 3.06 indicates Negative momentum. The RSI at 72.10 is Negative, neither overbought nor oversold. The STOCH value of 77.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAHC.

Phibro Animal Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTS	75 Outperform	$54.44B	21.77	65.99%	1.69%	2.68%	11.51%
PAHC	74 Outperform	$2.21B	24.20	31.80%	1.28%	33.71%	289.48%
ELAN	64 Neutral	$12.97B	―	-3.67%	―	3.08%	-82.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Phibro Animal Health Corporate Events

Phibro Animal Health Declares Quarterly Cash Dividend

On February 3, 2026, Phibro Animal Health Corporation’s board declared a quarterly cash dividend of $0.12 per share on both its Class A and Class B common stock, payable on March 25, 2026 to shareholders of record as of March 4, 2026, underscoring the company’s continued commitment to returning capital to investors and signaling confidence in its ongoing financial position within the animal health and nutrition sector.

The most recent analyst rating on (PAHC) stock is a Sell with a $32.00 price target. To see the full list of analyst forecasts on Phibro Animal Health stock, see the PAHC Stock Forecast page.

Phibro Animal Health Announces Generational CEO Succession Plan

On December 18, 2025, Phibro Animal Health announced a planned leadership transition effective July 1, 2026, under which long-time Chairman, Chief Executive Officer and President Jack Bendheim will move into the role of Executive Chairman while continuing as Chairman of the Board, and Daniel (Dani) Bendheim will be appointed Chief Executive Officer and President. The move formalizes a generational succession after Jack Bendheim’s decades-long tenure, during which he led significant global expansion and portfolio growth, and maintains continuity as the full executive leadership team remains in place with unanimous board support; Dani Bendheim’s promotion, backed by his extensive operational and strategic experience and involvement in the company’s transformation initiatives, is intended to support Phibro’s long-term growth strategy and reinforce its competitive position in the animal health industry.

The most recent analyst rating on (PAHC) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on Phibro Animal Health stock, see the PAHC Stock Forecast page.