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Phibro Animal Health (PAHC)
NASDAQ:PAHC
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Phibro Animal Health
(NASDAQ:PAHC)
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Rating:66Neutral
Price Target:
$42.00
▲(7.28% Upside)
Phibro Animal Health's overall stock score is driven by strong earnings call performance and growth potential, despite challenges in profitability and high leverage. Technical indicators suggest caution due to overbought conditions, and valuation metrics indicate the stock may be overvalued. The dividend announcement provides a slight positive impact on investor sentiment.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand and effective sales strategies, supporting long-term business expansion and market presence.
Animal Health Segment Performance
Exceptional performance in the Animal Health segment underscores the company's competitive advantage and market leadership in this core area.
Phibro Forward Strategy
The Phibro Forward strategy enhances operational efficiency and innovation, driving sustainable growth and strengthening the company's market position.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.
Low Net Profit Margin
Low net profit margins indicate challenges in cost management and profitability, which could affect long-term financial health and shareholder returns.
Negative Free Cash Flow Growth
Negative free cash flow growth suggests potential liquidity issues, limiting the company's ability to fund operations and strategic initiatives.
Phibro Animal Health (PAHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend Yield1.24%
Average Volume (3M)353.12K
Price to Earnings (P/E)32.7
Beta (1Y)1.14
Revenue Growth27.37%
EPS Growth1898.99%
CountryUS
Employees1,940
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.57
Shares Outstanding20,367,575
10 Day Avg. Volume288,552
30 Day Avg. Volume353,118
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit4.31
Enterprise Value/Ebitda11.96
Forecast
1Y Price Target
$36.80Price Target Upside-6.00% Downside
Rating ConsensusHold
Number of Analyst Covering5
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 generates revenue through the sales of its diverse range of animal health products, including vaccines, pharmaceuticals, and nutritional solutions. The company's revenue model is primarily based on direct sales to livestock producers, veterinarians, and feed manufacturers. Key revenue streams include the Animal Health segment, which contributes significantly through the sale of vaccines and medicated feed additives, and the Animal Nutrition segment, which focuses on specialty feed ingredients. Phibro also benefits from strategic partnerships with distributors and collaborations with research institutions to enhance product development and market reach. Additionally, the growing demand for animal protein and the increasing focus on animal health and welfare contribute positively to its earnings.
Phibro Animal Health Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with significant growth in key segments, particularly Animal Health, and a positive outlook for the next fiscal year driven by the Phibro Forward strategy. However, challenges such as the decline in legacy MFA net sales and increased SG&A and interest expenses were noted.Q4-2025 Updates
Positive Updates
Strong Animal Health Segment Performance
Animal Health segment saw a 53% sales growth and a 47% increase in adjusted EBITDA for the quarter. For the full year, sales rose 36% with adjusted EBITDA up 53%.
Notable Growth in MFA and Other Portfolio
MFA and other portfolio, bolstered by the Zoetis MFA integration, grew 77% in the fourth quarter. For the full year, it grew 54%.
Record Full Year Sales Increase
Consolidated net sales for the year were $1.296 billion, reflecting a 27% increase over the prior year.
Significant Increase in Adjusted EBITDA
Full year adjusted EBITDA increased $72.4 million or 65%.
Positive Free Cash Flow Generation
Generated $43 million of positive free cash flow for the 12 months ended June 30, 2025.
Phibro Forward Strategy Impact
The Phibro Forward strategy is showing benefits in operations and contributing to revenue growth and cost savings.
Negative Updates
Decline in Legacy MFA Net Sales
Legacy MFA net sales declined $4.6 million or 4% in the quarter due to timing of specific customer orders and strong performance in Q4 last year.
Increased SG&A and Interest Expenses
Higher SG&A due to employee-related costs and increased adjusted interest expense partially offset gross profit gains.
Challenges in Vaccine Demand
Decreased domestic demand for swine products affected vaccine sales performance.
Company Guidance
During the Phibro Animal Health Corporation's fourth quarter and fiscal year 2025 results webcast, the company provided guidance for fiscal year 2026, projecting net sales between $1.425 billion and $1.475 billion, adjusted EBITDA of $225 million to $235 million, and adjusted EPS of $2.52 to $2.70. This optimistic outlook reflects a continuation of strong performance observed in 2025, where notable achievements included a 53% growth in Animal Health sales and a 47% rise in adjusted EBITDA for the fourth quarter alone. The full year saw Animal Health sales increase by 36%, with significant contributions coming from the integration of the Zoetis MFA business, leading to a 54% growth in that segment. Nutritional Specialties and Vaccines also posted gains of 9% and 13%, respectively. Beyond Animal Health, the Mineral Nutrition and Performance Products segments also showed positive growth, contributing to a 39% increase in consolidated sales for the fourth quarter and a 27% increase for the full year. The company emphasized the impact of its Phibro Forward strategy, which aims to enhance operational efficiency and innovation, and expects further benefits from this initiative in 2026.Phibro Animal Health Financial Statement Overview
Summary
Phibro Animal Health shows strong revenue growth and stable gross margins, but faces challenges with low net profit margins and high leverage. Cash flow metrics indicate potential liquidity concerns, with negative free cash flow growth and limited cash conversion from operations.Income Statement
Phibro Animal Health shows a solid revenue growth rate of 8.86% in the latest year, indicating a positive trajectory. The gross profit margin is stable at around 30.85%, reflecting consistent cost management. However, the net profit margin is relatively low at 3.72%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, indicating operational efficiency but also highlighting potential for further cost optimization.75
Positive
Balance Sheet
The company's debt-to-equity ratio is high at 2.15, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is reasonable at 16.89%, showing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the balance sheet suggests a moderate level of equity relative to total assets.65
Positive
Cash Flow
Free cash flow growth is negative at -14.73%, which is a concern for future liquidity. The operating cash flow to net income ratio is low at 0.27, indicating limited cash generation from operations relative to net income. The free cash flow to net income ratio is moderate at 0.52, suggesting some ability to convert earnings into free cash flow.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.30B | 1.30B | 1.02B | 977.89M | 942.30M | 833.35M |
| Gross Profit | 399.94M | 399.94M | 313.09M | 298.24M | 285.40M | 271.38M |
| EBITDA | 144.14M | 148.20M | 84.61M | 106.03M | 114.82M | 105.50M |
| Net Income | 48.26M | 48.26M | 2.42M | 32.61M | 49.17M | 54.38M |
Balance Sheet | ||||||
| Total Assets | 1.36B | 1.36B | 982.18M | 971.40M | 931.70M | 841.33M |
| Cash, Cash Equivalents and Short-Term Investments | 77.04M | 77.04M | 114.61M | 81.28M | 91.25M | 93.21M |
| Total Debt | 615.43M | 615.43M | 525.46M | 509.97M | 470.48M | 426.71M |
| Total Liabilities | 1.08B | 1.08B | 725.54M | 688.89M | 669.26M | 602.80M |
| Stockholders Equity | 285.68M | 285.68M | 256.64M | 282.51M | 262.44M | 238.53M |
Cash Flow | ||||||
| Free Cash Flow | 41.83M | 41.83M | 46.36M | -38.48M | -5.39M | 18.99M |
| Operating Cash Flow | 80.12M | 80.12M | 87.59M | 13.31M | 31.65M | 48.31M |
| Investing Cash Flow | -288.69M | -288.69M | -48.19M | -74.02M | -22.58M | -18.58M |
| Financing Cash Flow | 207.13M | 207.13M | -6.77M | 26.99M | 16.34M | -17.00M |
Phibro Animal Health Technical Analysis
Positive
39.15
Price Trends
33.45
Positive
29.33
Positive
25.24
Positive
Market Momentum
1.43
Positive
58.58
Neutral
21.81
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 39.15 is above the 20-day moving average (MA) of 39.12, above the 50-day MA of 33.45, and above the 200-day MA of 25.24, indicating a neutral trend. The MACD of 1.43 indicates Positive momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 21.81 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
39.15
17.04
77.07%
ZTS
Zoetis
143.06
-49.97
-25.89%
ELAN
Elanco Animal Health
19.61
4.92
33.49%
Phibro Animal Health Corporate Events
Dividends
Phibro Animal Health Declares Quarterly Cash Dividend
Positive
Jul 29, 2025
On July 29, 2025, Phibro Animal Health Corporation announced a quarterly cash dividend of $0.12 per share for its Class A and Class B common stock, payable on September 24, 2025, to stockholders recorded by September 3, 2025. This declaration reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment and market positioning.
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.