Phibro Animal Health Corp (PAHC)
NASDAQ:PAHC
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Phibro Animal Health
(NASDAQ:PAHC)
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Rating:60Neutral
Price Target:
$32.00
▼(-43.93% Downside)
Action:Reiterated
Date:06/01/26
PAHC scores 60 primarily due to improved TTM profitability and a constructive earnings outlook with raised FY2026 guidance, tempered by weak cash-flow conversion and leverage. Technicals are a meaningful drag given the strong downtrend and very weak momentum, while valuation is supportive with a moderate P/E and a modest dividend.
Positive Factors
Revenue and margin rebound
Phibro has a sustained improvement in top-line and profitability versus recent troughs, evidenced by stronger TTM revenue and higher net margins. This reflects better pricing, product mix and operational leverage, increasing durable earnings power and resilience across protein production cycles.
Negative Factors
Weak cash conversion
Earnings have not translated reliably into cash, with operating cash covering only a fraction of reported income and sharply lower free cash flow. This persistent cash volatility constrains the firm's ability to reduce leverage, fund growth without external financing, and sustain shareholder returns long-term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin rebound
Phibro has a sustained improvement in top-line and profitability versus recent troughs, evidenced by stronger TTM revenue and higher net margins. This reflects better pricing, product mix and operational leverage, increasing durable earnings power and resilience across protein production cycles.
Read all positive factors
Phibro Animal Health Key Performance Indicators (KPIs)
Phibro Animal Health (PAHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.29B
Dividend Yield1.28%
Average Volume (3M)420.71K
Price to Earnings (P/E)14.1
Beta (1Y)0.87
Revenue Growth25.98%
EPS Growth199.43%
CountryUS
Employees1,940
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.34
Shares Outstanding21,068,682
10 Day Avg. Volume367,563
30 Day Avg. Volume420,706
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 Cap1.54
Enterprise Value/Revenue1.32
Enterprise Value/Gross Profit4.06
Enterprise Value/Ebitda8.43
Forecast
1Y Price Target
$44.00Price Target Upside-22.90% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.07
Revenue Forecast (FY)$1.49B
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 P...
How the Company Makes Money
PAHC makes money primarily by selling animal health and nutrition products to the commercial livestock and poultry supply chain. Its revenue model is product-sales driven and is typically organized around several core streams: (1) Animal Health: s...
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 | 235.02M | 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
46.89
Negative
47.25
Negative
43.24
Negative
Market Momentum
-4.71
Negative
37.13
Neutral
41.98
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 34.01, above the 50-day MA of 46.89, and above the 200-day MA of 43.24, indicating a bearish trend. The MACD of -4.71 indicates Negative momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 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
33.04
9.45
40.04%
ZTS
Zoetis
79.52
-86.51
-52.11%
ELAN
Elanco Animal Health
24.71
11.28
83.99%
Phibro Animal Health Corporate Events
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.