Phibro Animal Health (PAHC) AI Stock Analysis

• Market Cap: $969.97M
• Dividend Yield: 2%
• Average Volume (3M): 249.03K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.94
• Revenue Growth: 19.12%
• EPS Growth: 141.45%
• Country: US
• Employees: 1,940
• Sector: Healthcare
• Sector Strength: 59
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.63
• Shares Outstanding: 20,367,575
• 10 Day Avg. Volume: 191,055
• 30 Day Avg. Volume: 249,035
• PEG Ratio: -0.51
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.42
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 2.42
• 1Y Price Target: $20.00
• Price Target Upside: -16.42% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $26.00 ▲(8.65%Upside)

Phibro Animal Health shows strong revenue growth and positive earnings guidance, but high leverage and valuation concerns weigh on the stock. Technical indicators suggest potential overbought conditions, while the commitment to dividends is a positive sign for shareholders. Improving profitability and managing debt levels are critical for future stability.

Positive Factors

Business Integration

Management noted the successful integration of the MFA business and the positive impact of its Phibro Forward initiatives.

Earnings

Phibro Animal Health reported strong second quarter results with revenues of $309.3 million and adjusted EPS ahead of estimates.

Financial Guidance

PAHC raised its fiscal year EPS guidance, reflecting the acquisition and strong performance of its legacy business.

Negative Factors

Growth and Profitability

Despite solid results, the recommendation remains 'Underperform' due to Phibro Animal Health's below-peer growth and profitability profiles.

Stock Performance

The stock price is currently above the price objective, indicating limited upside potential according to the analysis.

Phibro Animal Health Business Overview & Revenue Model

Company Description

Phibro Animal Health Corporation (PAHC) is a global leader in animal health and nutrition, offering a range of products and services designed to enhance the health, productivity, and welfare of animals. The company operates primarily in three sectors: Animal Health, Mineral Nutrition, and Performance Products. Its core products include medicated feed additives, vaccines, and nutritional products that cater to the needs of livestock such as poultry, swine, beef and dairy cattle, and aquaculture.

How the Company Makes Money

Phibro Animal Health makes money through the sale of its diverse range of products in the Animal Health, Mineral Nutrition, and Performance Products segments. The Animal Health segment, which generates the majority of the company's revenue, includes medicated feed additives, vaccines, and other pharmaceuticals. These products are crucial for preventing and treating diseases in animals, thereby improving their productivity and well-being. The Mineral Nutrition segment offers trace minerals and supplements that are essential for animal growth and development, while the Performance Products segment provides specialty ingredients used in industries such as personal care, automotive, and industrial chemical markets. Revenue is driven by the company's extensive distribution network and strategic partnerships with agricultural producers and veterinary professionals, ensuring widespread availability and adoption of its products globally.

Phibro Animal Health Financial Statement Overview

Summary

Phibro Animal Health demonstrates solid revenue growth and operational efficiency, though profitability margins are somewhat constrained. The balance sheet reveals high leverage, posing potential risks. Cash flow generation is positive, supporting operations and growth. The company should focus on improving profitability and managing debt levels to enhance financial stability.

Income Statement

Phibro Animal Health shows a healthy revenue growth of 17.0% from the previous year with a TTM revenue of $1,190.7 million. The Gross Profit Margin for TTM is a strong 31.6%, indicating good cost control. However, the Net Profit Margin stands at a modest 2.7%, highlighting some profitability challenges. The EBIT and EBITDA margins are 7.5% and 10.8%, respectively, showing moderate operational efficiency.

Balance Sheet

The company maintains a high Debt-to-Equity ratio of 2.89, suggesting significant leverage. The Return on Equity (ROE) is relatively low at 12.0%, indicating limited return to shareholders. Equity Ratio stands at 20.2%, reflecting a considerable reliance on debt for funding.

Cash Flow

Phibro's Free Cash Flow grew by 5.8%, indicating positive cash generation. The Operating Cash Flow to Net Income ratio is strong at 2.75, showing efficient cash conversion. However, the Free Cash Flow to Net Income ratio of 1.54 reflects moderate cash profitability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.19B	1.02B	977.89M	942.30M	833.35M	800.40M
	Gross Profit
376.71M	313.09M	298.24M	285.40M	271.38M	256.90M
	EBIT
89.39M	53.31M	71.85M	46.30M	75.96M	36.86M
	EBITDA
128.96M	84.61M	106.03M	114.82M	105.50M	102.16M
	Net Income Common Stockholders
31.79M	2.42M	32.61M	49.17M	54.38M	33.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.35M	114.61M	81.28M	91.25M	93.21M	91.34M
	Total Assets
1.32B	982.18M	971.40M	931.70M	841.33M	784.10M
	Total Debt
770.02M	525.46M	509.97M	470.48M	426.71M	410.72M
	Net Debt
709.67M	454.85M	468.69M	396.24M	376.49M	374.38M
	Total Liabilities
1.05B	725.54M	688.89M	669.26M	602.80M	595.90M
	Stockholders Equity
265.99M	256.64M	282.51M	262.44M	238.53M	188.20M
Cash Flow		Free Cash Flow
49.06M	46.36M	-38.48M	-5.39M	18.99M	25.30M
	Operating Cash Flow
87.28M	87.59M	13.31M	31.65M	48.31M	59.35M
	Investing Cash Flow
-290.76M	-48.19M	-74.02M	-22.58M	-18.58M	-120.39M
	Financing Cash Flow
216.69M	-6.77M	26.99M	16.34M	-17.00M	40.94M

Phibro Animal Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 23.93 is below the 20-day moving average (MA) of 24.03, above the 50-day MA of 21.13, and above the 200-day MA of 21.97, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 74.68 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
IRMD	80 Outperform	$739.64M	37.61	23.81%	1.17%	11.04%	9.84%
PNTG	69 Neutral	$953.76M	36.10	11.28%	―	30.04%	43.47%
PAHC	67 Neutral	$969.97M	30.62	11.86%	2.00%	19.12%	141.45%
HSTM	64 Neutral	$831.81M	43.61	5.40%	0.46%	3.36%	7.51%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
OFIX	49 Neutral	$430.99M	―	-27.82%	―	5.85%	-8.92%
OMI	48 Neutral	$596.82M	―	-49.91%	―	2.84%	-828.91%

Phibro Animal Health Corporate Events

Phibro Animal Health Declares Quarterly Cash Dividend

On May 6, 2025, Phibro Animal Health Corporation announced a quarterly cash dividend of $0.12 per share on its Class A and Class B common stock. This dividend will be payable on June 25, 2025, to stockholders of record as of June 4, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.