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Phibro Animal Health
(NASDAQ:PAHC)
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Rating:62Neutral
Price Target:
$34.00
▼(-40.42% Downside)
Action:Reiterated
Date:06/27/26
PAHC scores as a moderate setup: strong recent profitability and upbeat, raised guidance support the outlook, but the overall score is capped by weak/volatile cash flow execution and a clearly bearish technical trend (price far below long-term moving averages). Reasonable valuation and supportive liquidity actions provide partial offset, while Brazil regulatory risk remains a meaningful watch item.
Positive Factors
Profitability recovery & raised guidance
Management raised full-year guidance and reported stronger trailing results, signalling durable operating improvement. Higher adjusted EBITDA and net income guidance reflect better pricing/mix and operating leverage that can sustain margins and fund reinvestment over the next several quarters.
Negative Factors
Weak cash conversion
Cash conversion remains the company’s weakest link: sharply lower free cash flow and OCF covering only a fraction of earnings reduce the firm's ability to self-fund growth, dividends or deleveraging. This persistent volatility limits strategic flexibility and raises refinancing reliance.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery & raised guidance
Management raised full-year guidance and reported stronger trailing results, signalling durable operating improvement. Higher adjusted EBITDA and net income guidance reflect better pricing/mix and operating leverage that can sustain margins and fund reinvestment over the next several quarters.
Read all positive factors
Phibro Animal Health Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Reports segment-level operating profitability after adjusting for one-time items, revealing which business units generate cash, which have the strongest margins, and where cost structure or scale could support future earnings growth.
Reports segment-level operating profitability after adjusting for one-time items, revealing which business units generate cash, which have the strongest margins, and where cost structure or scale could support future earnings growth.
Data provided by:
The Fly
The FlyPhibro Animal Health (PAHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.35B
Dividend Yield1.44%
Average Volume (3M)282.63K
Price to Earnings (P/E)14.2
Beta (1Y)0.82
Revenue Growth25.98%
EPS Growth199.43%
CountryUS
Employees2,475
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.34
Shares Outstanding21,068,682
10 Day Avg. Volume308,503
30 Day Avg. Volume282,629
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)3.62
Price to Sales (P/S)0.80
P/FCF Ratio24.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$41.00Price Target Upside-28.16% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)3.4
Revenue Forecast (FY)$1.55B
Phibro Animal Health Business Overview & Revenue Model
Company Description
Phibro Animal Health Corporation operates as a global entity focused on the research, production, and supply of a wide array of animal health and mineral nutrition solutions. While serving a global clientele, its primary market for livestock produ...
How the Company Makes Money
Phibro primarily makes money by selling animal-health and nutrition products used in food-animal production, along with revenue from distribution of third‑party products and related services. Key revenue streams include: (1) Animal Health product ...
Phibro Animal Health Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicates solid top-line and profitability momentum—10% revenue growth, double-digit adjusted EBITDA and meaningful upgrades to full-year guidance midpoints—alongside strategic initiatives (sustainability platform) and improved liquidity. Offsetting risks include a steep decline in Performance Products, a significant regulatory change in Brazil affecting ~$26M of prior-year sales (potential FY2027 headwind), FX and interest cost pressures, inventory build-up, and geopolitical uncertainty in the Middle East. Overall, the positive operational and financial trends and upgraded guidance outweigh the disclosed challenges.Positive Updates
Consolidated Revenue Growth
Net sales increased 10% year-over-year to $383.5 million for Q3 FY2026.
Negative Updates
Performance Products Weakness
Performance Products net sales declined 17% to $18.9 million due to lower demand for ingredients used in personal care; adjusted EBITDA decreased by $1.1 million.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Net sales increased 10% year-over-year to $383.5 million for Q3 FY2026.
Read all positive updates
Company Guidance
Phibro updated its fiscal 2026 guidance by raising the lower end of several ranges: net sales $1.46–1.50 billion (implying ~13%–16% growth, midpoint ≈14%); total adjusted EBITDA $247–255 million (~34%–39% growth, midpoint ≈37%); and adjusted net income $122–127 million (~44%–49% growth, midpoint ≈47%). Management said GAAP net income and EPS assume constant currency and no additional FX gains/losses and include one‑time Phibro Forward costs, and noted the Brazil virginiamycin item (virginiamycin sales were $26 million in FY2025 with above‑average margin) will be clearer for FY2027 after therapeutic approvals during the six‑month transition.Phibro Animal Health Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.50B | 1.30B | 1.02B | 977.89M | 942.26M | 833.35M |
| Gross Profit | 487.32M | 399.94M | 313.09M | 298.24M | 285.40M | 271.38M |
| EBITDA | 225.31M | 146.85M | 69.06M | 106.03M | 117.13M | 110.21M |
| Net Income | 95.23M | 48.26M | 2.42M | 32.61M | 49.17M | 54.38M |
Balance Sheet | ||||||
| Total Assets | 1.45B | 1.36B | 982.18M | 971.40M | 931.70M | 841.33M |
| Cash, Cash Equivalents and Short-Term Investments | 77.45M | 77.04M | 114.61M | 81.28M | 91.25M | 93.21M |
| Total Debt | 787.44M | 761.55M | 525.46M | 509.97M | 470.48M | 426.71M |
| Total Liabilities | 1.08B | 1.08B | 725.54M | 688.89M | 669.26M | 602.80M |
| Stockholders Equity | 361.83M | 285.68M | 256.64M | 282.51M | 262.44M | 238.53M |
Cash Flow | ||||||
| Free Cash Flow | 12.77M | 41.83M | 46.36M | -38.48M | -5.39M | 18.99M |
| Operating Cash Flow | 66.13M | 80.12M | 87.59M | 13.31M | 31.65M | 48.31M |
| Investing Cash Flow | -62.04M | -288.69M | -48.19M | -74.02M | -22.58M | -18.58M |
| Financing Cash Flow | -12.71M | 207.13M | -6.77M | 26.99M | 16.34M | -17.00M |
Phibro Animal Health Technical Analysis
Negative
57.07
Price Trends
33.46
Negative
43.60
Negative
42.55
Negative
Market Momentum
-0.13
Negative
50.32
Neutral
76.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAHC, the sentiment is Negative. The current price of 57.07 is above the 20-day moving average (MA) of 32.43, above the 50-day MA of 33.46, and above the 200-day MA of 42.55, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 76.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
33.31
4.53
15.75%
ZTS
Zoetis
76.56
-69.04
-47.42%
ELAN
Elanco Animal Health
25.83
11.15
75.95%
Phibro Animal Health Corporate Events
Executive/Board Changes
Phibro Animal Health Appoints Dani Bendheim as CEO
Positive
Jun 26, 2026
On June 25, 2026, Phibro Animal Health’s board approved an employment agreement for Daniel (Dani) Bendheim, who will become Chief Executive Officer and President effective July 1, 2026, with an $850,000 base salary, target bonus equal to 50%...
Dividends
Phibro Animal Health Declares Quarterly Cash Dividend
Positive
May 5, 2026
On May 5, 2026, Phibro Animal Health Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share on both its Class A and Class B common stock. The dividend will be paid on June 24, 2026, to shareholders ...
Business Operations and StrategyPrivate Placements and Financing
Phibro Animal Health Expands Revolving Credit Facility Commitment
Positive
Apr 30, 2026
On April 28, 2026, Phibro Animal Health Corporation amended its existing credit agreement with Coöperatieve Rabobank U.A., New York Branch and a syndicate of lenders, increasing its revolving credit commitment by $125 million, from $310 milli...
Business Operations and StrategyRegulatory Filings and Compliance
Brazil Antimicrobial Feed Additive Ban Spurs Phibro Response
Negative
Apr 27, 2026
On April 27, 2026, Brazil’s Ministry of Agriculture and Livestock issued Ordinance No. 1617, banning the import, manufacture, marketing and use of performance-enhancing feed additives containing medically important antimicrobials, including ...
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.