tiprankstipranks
Trending News
More News >
Phibro Animal Health (PAHC)
NASDAQ:PAHC

Phibro Animal Health (PAHC) AI Stock Analysis

Compare
94 Followers

Top Page

PA

Phibro Animal Health

(NASDAQ:PAHC)

Rating:68Neutral
Price Target:
$29.00
▼(-3.72%Downside)
Phibro Animal Health's overall stock score reflects a combination of strong earnings growth and raised guidance, which are significant positives. However, high leverage, a potentially overvalued stock price, and overbought technical indicators present risks. The modest dividend yield and cash flow positivity are supportive but secondary in impact.
Positive Factors
Earnings and Margins
The ZTS MFA business is achieving higher margins than expected, contributing to higher EPS and EBITDA for the company.
Financial Performance
PAHC's financial performance was fueled by broad strength across all three segments, with notable growth through Animal Health and Performance Products.
Stock Rating Upgrade
PAHC is delivering strong results and the integration of the ZTS MFA business is exceeding expectations, leading to an upgrade in the stock rating.
Negative Factors
Peer Comparison
The analyst maintains an Underperform rating given Phibro Animal Health's below-peer growth and profitability profiles.
Stock Price Valuation
The stock price is currently above the price objective, indicating limited upside potential according to the analysis.

Phibro Animal Health (PAHC) vs. SPDR S&P 500 ETF (SPY)

Phibro Animal Health Business Overview & Revenue Model

Company DescriptionPhibro 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 MoneyPhibro 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q3-2025)
|
% Change Since: 56.14%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance with significant growth across key segments, particularly in the Animal Health and Performance Products sectors. Despite some challenges such as declining legacy MFA sales and anticipated tariff pressures, the overall sentiment remains positive due to robust growth, improved operating leverage, and raised financial guidance.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Total sales increased 32% year-over-year, adjusted EBITDA rose 85%, and adjusted diluted EPS more than doubled. This reflects both top-line growth and improved operating leverage.
Animal Health Segment Growth
Animal Health segment led with 42% revenue growth, driven by a 68% increase in sales of newly integrated MFA and other products.
Nutritional Specialties and Performance Products
Nutritional Specialties showed 8% revenue growth, while Performance Products posted a strong gain of 28%.
Updated Financial Guidance
Full-year guidance was narrowed and the midpoint raised. Net sales are expected between $1.26 billion and $1.29 billion, with adjusted EBITDA of $177 million to $183 million, and adjusted EPS of $1.96 to $2.09.
Positive Free Cash Flow
Generated $49 million of positive free cash flow for the 12 months ended March 31, 2025.
Negative Updates
Legacy MFA Sales Decline
Legacy MFA and other sales declined by 3% due to the timing of specific customer orders.
Tariff Pressures
Anticipation of some pressure on certain inputs and markets in fiscal 2026 in the range of $5 million to $10 million due to evolving tariff environment.
Increased SG&A Costs
Higher SG&A costs due to increased employee-related expenses.
Company Guidance
During the Phibro Animal Health Corporation's third quarter 2025 earnings call, the company provided updated financial guidance for the fiscal year ending June 30, 2025. They expect net sales to range from $1.26 billion to $1.29 billion, reflecting a growth of 24% to 27%. Adjusted EBITDA is projected to be between $177 million and $183 million, representing a growth of 59% to 66%, while adjusted EPS is anticipated to be between $1.96 and $2.09, marking a growth of 65% to 76%. GAAP EPS is expected to range from $0.98 to $1.11. The company highlighted the positive impact of integrating the Zoetis medicated feed additive portfolio, which contributed significantly to the growth in sales and profitability. Additionally, the Phibro Forward initiative is expected to drive further revenue growth and cost savings. Despite potential challenges from tariffs, Phibro remains confident in its ability to manage these impacts and deliver strong financial results.

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
72
Positive
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
65
Positive
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
68
Positive
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.19B1.02B977.89M942.30M833.35M800.40M
Gross Profit376.71M313.09M298.24M285.40M271.38M256.90M
EBITDA128.96M84.61M106.03M114.82M105.50M102.16M
Net Income31.79M2.42M32.61M49.17M54.38M33.55M
Balance Sheet
Total Assets1.32B982.18M971.40M931.70M841.33M784.10M
Cash, Cash Equivalents and Short-Term Investments70.35M114.61M81.28M91.25M93.21M91.34M
Total Debt770.02M525.46M509.97M470.48M426.71M410.72M
Total Liabilities1.05B725.54M688.89M669.26M602.80M595.90M
Stockholders Equity265.99M256.64M282.51M262.44M238.53M188.20M
Cash Flow
Free Cash Flow49.06M46.36M-38.48M-5.39M18.99M25.30M
Operating Cash Flow87.28M87.59M13.31M31.65M48.31M59.35M
Investing Cash Flow-290.76M-48.19M-74.02M-22.58M-18.58M-120.39M
Financing Cash Flow216.69M-6.77M26.99M16.34M-17.00M40.94M

Phibro Animal Health Technical Analysis

Technical Analysis Sentiment
Positive
Last Price30.12
Price Trends
50DMA
23.35
Positive
100DMA
22.30
Positive
200DMA
22.35
Positive
Market Momentum
MACD
1.29
Negative
RSI
84.05
Negative
STOCH
92.19
Negative
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 30.12 is above the 20-day moving average (MA) of 25.26, above the 50-day MA of 23.35, and above the 200-day MA of 22.35, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 84.05 is Negative, neither overbought nor oversold. The STOCH value of 92.19 is Negative, 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 64 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$750.45M38.1623.81%1.10%11.04%9.84%
68
Neutral
$1.21B38.2611.86%1.71%19.12%141.45%
68
Neutral
$891.02M33.7211.28%30.04%43.47%
64
Neutral
$842.19M44.155.40%0.45%3.36%7.51%
52
Neutral
$7.45B0.30-61.93%2.28%16.62%1.04%
OMOMI
51
Neutral
$663.48M-49.91%2.84%-828.91%
49
Neutral
$420.02M-27.82%5.85%-8.92%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAHC
Phibro Animal Health
30.12
13.34
79.50%
HSTM
HealthStream
27.46
-0.08
-0.29%
OFIX
Orthofix
11.31
-3.38
-23.01%
OMI
Owens & Minor
8.99
-3.94
-30.47%
IRMD
Iradimed
59.32
16.18
37.51%
PNTG
Pennant Group
25.84
2.00
8.39%

Phibro Animal Health Corporate Events

Dividends
Phibro Animal Health Declares Quarterly Cash Dividend
Positive
May 6, 2025

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.

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.Date of analysis: Jul 02, 2025