Phibro Animal Health (PAHC) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: 1.22%
• Average Volume (3M): 328.61K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.13
• Revenue Growth: 27.37%
• EPS Growth: 1898.99%
• Country: US
• Employees: 1,940
• Sector: Healthcare
• Sector Strength: 52
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.57
• Shares Outstanding: 20,367,575
• 10 Day Avg. Volume: 482,448
• 30 Day Avg. Volume: 328,607
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 11.96
• 1Y Price Target: $35.75
• Price Target Upside: -9.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $42.00 ▲(6.46% 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

Earnings

Phibro Animal Health Corp's earnings per share exceeded expectations, driven by strong performance across all segments.

Guidance

The initial guidance for future earnings per share and revenue is above market expectations, indicating strong future prospects.

Strategic Initiatives

Management highlighted successful strategic initiatives, which are contributing positively to growth and operational efficiency.

Negative Factors

Growth Moderation

Growth is expected to moderate and return to historical levels with limited operating leverage once M&A is annualized.

Legacy Business Decline

The legacy MFA business showed a year-over-year decline, contrasting with the positive contribution from acquired Zoetis MFA assets.

Profitability

Analyst reiterates an Underperform rating due to below-peer profitability and EBITDA growth.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 39.45
• 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 39.45 is above the 20-day moving average (MA) of 33.04, above the 50-day MA of 30.27, and above the 200-day MA of 24.03, indicating a bullish trend. The MACD of 2.65 indicates Negative momentum. The RSI at 76.04 is Negative, neither overbought nor oversold. The STOCH value of 92.49 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
ZTS	76 Outperform	$67.95B	26.38	52.54%	1.26%	5.27%	13.72%
ELAN	72 Outperform	$9.16B	21.12	6.83%	―	-0.18%	―
PAHC	66 Neutral	$1.60B	33.25	17.80%	1.22%	27.37%	1898.99%
Sector *	51 Neutral	$7.95B	-0.40	-42.50%	2.21%	22.29%	-1.85%

Phibro Animal Health Corporate Events

Phibro Animal Health Declares Quarterly Cash Dividend

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.