Phibro Animal Health (PAHC) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 1.71%
• Average Volume (3M): 247.85K
• Price to Earnings (P/E): 38.3
• Beta (1Y): 0.99
• Revenue Growth: 19.12%
• EPS Growth: 141.45%
• Country: US
• Employees: 1,940
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.63
• Shares Outstanding: 20,367,575
• 10 Day Avg. Volume: 318,573
• 30 Day Avg. Volume: 247,853
• 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: 0.84
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 2.42
• 1Y Price Target: $23.00
• Price Target Upside: -23.64% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• 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 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 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
EBITDA	128.96M	84.61M	106.03M	114.82M	105.50M	102.16M
Net Income	31.79M	2.42M	32.61M	49.17M	54.38M	33.55M
Balance Sheet
Total Assets	1.32B	982.18M	971.40M	931.70M	841.33M	784.10M
Cash, Cash Equivalents and Short-Term Investments	70.35M	114.61M	81.28M	91.25M	93.21M	91.34M
Total Debt	770.02M	525.46M	509.97M	470.48M	426.71M	410.72M
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: 30.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRMD	81 Outperform	$750.45M	38.16	23.81%	1.10%	11.04%	9.84%
PAHC	68 Neutral	$1.21B	38.26	11.86%	1.71%	19.12%	141.45%
PNTG	68 Neutral	$891.02M	33.72	11.28%	―	30.04%	43.47%
HSTM	64 Neutral	$842.19M	44.15	5.40%	0.45%	3.36%	7.51%
Sector *	52 Neutral	$7.45B	0.30	-61.93%	2.28%	16.62%	1.04%
OMI	51 Neutral	$663.48M	―	-49.91%	―	2.84%	-828.91%
OFIX	49 Neutral	$420.02M	―	-27.82%	―	5.85%	-8.92%

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.