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Eco Animal Health (GB:EAH)
:EAH

Eco Animal Health (EAH) AI Stock Analysis

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Eco Animal Health

(LSE:EAH)

62Neutral
Eco Animal Health's overall stock score reflects a stable financial position bolstered by a strong balance sheet and positive corporate events. However, profitability challenges, declining cash flow, and high valuation metrics weigh down its attractiveness. Technical indicators suggest caution, although recent strategic moves may offer potential upside if operational efficiencies improve.

Eco Animal Health (EAH) vs. S&P 500 (SPY)

Eco Animal Health Business Overview & Revenue Model

Company DescriptionEco Animal Health (EAH) is a global leader in the development, registration, and marketing of pharmaceutical products for animal health. Operating primarily in the veterinary pharmaceutical sector, the company focuses on providing high-quality, innovative solutions for the treatment and prevention of disease in livestock and companion animals. EAH's core products include a range of antibiotics, vaccines, and other health-enhancing pharmaceuticals designed to improve the well-being and productivity of animals worldwide.
How the Company Makes MoneyEco Animal Health makes money through the sale of its veterinary pharmaceutical products. The company's revenue model is based on the development and commercialization of proprietary animal health products, which are sold directly to veterinarians, farmers, and distributors across various regions. Key revenue streams include the sales of antibiotics and vaccines for livestock, such as pigs and poultry, as well as treatments for companion animals like cats and dogs. EAH also benefits from strategic partnerships and collaborations with other pharmaceutical companies and research institutions, which help to enhance its product offerings and extend its market reach. Additionally, the company invests in research and development to continuously innovate and expand its product pipeline, ensuring a steady flow of new and effective solutions to meet the evolving needs of the animal health industry.

Eco Animal Health Financial Statement Overview

Summary
Eco Animal Health demonstrates financial stability with a strong balance sheet and consistent revenue growth. However, profitability challenges and declining cash flows present potential risks. The company should focus on improving operational efficiency and managing costs to enhance profitability.
Income Statement
72
Positive
Eco Animal Health's revenue growth has been relatively stable, with a slight increase from 2023 to 2024. Gross profit margin remains solid at 42.1% for 2024, though net profit margin is low at 1.17%, indicating high expenses or other cost pressures. EBIT and EBITDA margins have decreased, suggesting declining operational efficiency.
Balance Sheet
80
Positive
The company's balance sheet is strong, with a low debt-to-equity ratio of 0.048 and a healthy equity ratio of 67.9%. Return on equity is modest at 1.25%, reflecting limited profitability. The company has a solid cash position, enhancing its financial stability.
Cash Flow
65
Positive
Operating cash flow has decreased significantly from the previous year, with a free cash flow growth rate of -50.7%. The operating cash flow to net income ratio suggests solid cash conversion, but the decreasing trend in free cash flow is a concern for future investments.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
89.42M85.31M82.19M105.61M72.11M
Gross Profit
37.68M36.75M33.70M51.54M32.41M
EBIT
3.54M5.05M4.53M16.90M6.50M
EBITDA
6.48M7.41M3.62M18.63M7.97M
Net Income Common Stockholders
1.05M1.01M-686.00K7.34M3.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.37M21.66M14.31M19.52M11.88M
Total Assets
123.27M121.31M113.60M116.89M99.99M
Total Debt
4.03M4.48M1.91M1.52M3.80M
Net Debt
-18.35M-17.18M-12.40M-18.00M-8.08M
Total Liabilities
29.89M25.76M19.25M21.57M19.54M
Stockholders Equity
83.69M83.27M82.06M81.90M74.68M
Cash FlowFree Cash Flow
4.94M10.03M-3.25M11.04M1.63M
Operating Cash Flow
9.42M16.01M-358.00K12.11M4.51M
Investing Cash Flow
-3.42M-5.98M-2.88M-1.06M-2.88M
Financing Cash Flow
-3.69M-2.40M-3.31M-684.00K-8.67M

Eco Animal Health Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price65.00
Price Trends
50DMA
58.20
Positive
100DMA
61.63
Positive
200DMA
74.51
Negative
Market Momentum
MACD
2.52
Negative
RSI
53.98
Neutral
STOCH
31.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EAH, the sentiment is Neutral. The current price of 65 is above the 20-day moving average (MA) of 60.27, above the 50-day MA of 58.20, and below the 200-day MA of 74.51, indicating a neutral trend. The MACD of 2.52 indicates Negative momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 31.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:EAH.

Eco Animal Health Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£178.88M29.0519.61%3.72%10.32%1.25%
75
Outperform
£165.56M4.5533.70%2.08%-0.17%2591.96%
GBEAH
62
Neutral
£43.37M64.430.80%-4.37%
GBGNS
62
Neutral
£1.37B147.63-0.73%1.59%-0.22%-111.98%
52
Neutral
$5.17B3.59-42.19%2.82%15.05%-0.04%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EAH
Eco Animal Health
62.50
-55.50
-47.03%
GB:TSTL
Tristel
395.00
-41.68
-9.54%
GB:ANCR
Animalcare
243.00
16.75
7.40%
GB:GNS
Genus plc
2,110.00
272.77
14.85%

Eco Animal Health Corporate Events

Business Operations and Strategy
Schroders Increases Stake in Eco Animal Health Group
Positive
May 2, 2025

Eco Animal Health Group PLC has announced a significant change in its shareholder structure, with Schroders PLC increasing its stake in the company to 19.038827% from a previous position of 18.272461%. This acquisition of shares by Schroders PLC, a major investment management company based in London, highlights increased confidence in Eco Animal Health’s market positioning and potential growth prospects, which could have implications for the company’s strategic direction and stakeholder interests.

Spark’s Take on GB:EAH Stock

According to Spark, TipRanks’ AI Analyst, GB:EAH is a Neutral.

Eco Animal Health’s overall stock score reflects a stable financial position bolstered by a strong balance sheet and positive corporate events. However, profitability challenges, declining cash flow, and high valuation metrics weigh down its attractiveness. Technical indicators suggest caution, although recent strategic moves may offer potential upside if operational efficiencies improve.

To see Spark’s full report on GB:EAH stock, click here.

Business Operations and Strategy
ECO Animal Health CEO Increases Stake with Share Purchase
Positive
Apr 28, 2025

ECO Animal Health Group PLC announced that its CEO, David Hallas, has purchased 29,962 ordinary shares of the company at a price of 66.75 pence per share, increasing his total holdings to 154,797 shares. This move reflects confidence in the company’s growth prospects and could positively influence investor sentiment, reinforcing ECO’s position in the competitive animal health market.

Spark’s Take on GB:EAH Stock

According to Spark, TipRanks’ AI Analyst, GB:EAH is a Neutral.

Eco Animal Health has a stable financial position with a strong balance sheet but faces challenges in profitability and cash flow. Positive corporate actions and strategic refocusing on core areas provide potential upside. However, the high P/E ratio and technical indicators warrant caution. The stock scores moderately, reflecting both its strengths and risks.

To see Spark’s full report on GB:EAH stock, click here.

Business Operations and StrategyFinancial Disclosures
ECO Animal Health Expects EBITDA Above Market Expectations Amid Challenging Conditions
Positive
Apr 24, 2025

ECO Animal Health Group PLC has announced that its adjusted EBITDA for the year ended 31 March 2025 is expected to be slightly above market expectations due to strong trading in the final quarter, robust overhead cost control, and gross margins exceeding 45%. Despite challenges such as currency headwinds and geopolitical uncertainties, the company managed to achieve this profitability. However, group revenue is anticipated to be approximately 7% below market expectations. The company is taking proactive measures to mitigate the impact of US trade tariffs and continues to invest in new product innovation, particularly in its R&D pipeline, which is expected to drive future growth.

Spark’s Take on GB:EAH Stock

According to Spark, TipRanks’ AI Analyst, GB:EAH is a Neutral.

Eco Animal Health scores moderately due to a stable financial position and positive corporate events. However, the high P/E ratio and weak technical indicators suggest caution. The company’s efforts to streamline operations and focus on core sectors like pigs and poultry are promising, but profitability and valuation concerns weigh down the stock’s attractiveness.

To see Spark’s full report on GB:EAH stock, click here.

Business Operations and Strategy
ECO Animal Health Hosts R&D Day to Showcase Future Innovations
Neutral
Mar 13, 2025

ECO Animal Health Group PLC is hosting an R&D Day to provide insights into its R&D pipeline, which is expected to drive long-term value creation and innovation in preventative animal health. The event, led by the company’s CEO and CFO, will not present new trading information but will offer investors and analysts a deeper understanding of the company’s future strategies. The company plans to release a trading update in April 2025.

Product-Related AnnouncementsBusiness Operations and Strategy
ECO Animal Health Submits EU Vaccine Application for Poultry
Positive
Mar 3, 2025

ECO Animal Health Group has submitted a Marketing Authorisation Application to the European Medicines Agency for its ECOVAXXIN® Mycoplasma synoviae vaccine, marking a significant milestone in its vaccine development portfolio. This submission, slightly ahead of schedule, aligns with ECO’s commercialisation strategy and is expected to take 18 months for approval. The vaccine targets Mycoplasma synoviae, a significant poultry disease that causes economic losses due to reduced egg production and increased mortality. The company is also pursuing US marketing approval for the vaccine, anticipating simultaneous approval with Europe, and is working on a sister vaccine for Mycoplasma gallisepticum.

Business Operations and StrategyRegulatory Filings and Compliance
Eco Animal Health Sees Change in Voting Rights Stake
Neutral
Feb 24, 2025

Eco Animal Health Group PLC has announced a change in its voting rights, following an acquisition or disposal of shares by Killik & Co LLP. The transaction, which took place on February 20, 2025, resulted in Killik & Co LLP holding 3.0659% of the voting rights in the company, up from a previous position of 3.0157%. This change reflects a slight increase in their stake, indicating a potential strategic interest in the company’s operations and future direction.

M&A TransactionsStock BuybackBusiness Operations and Strategy
ECO Animal Health Sells Non-Core Assets to Focus on Pigs and Poultry
Positive
Feb 19, 2025

ECO Animal Health Group has sold certain non-core product lines, specifically ECOmectin licenses for sheep and cattle in Southern Africa, to a distribution partner for £491,000. This strategic move allows the company to sharpen its focus on its core business of pigs and poultry, reinvesting the proceeds into its R&D pipeline for new vaccines and preventatives, and potentially a share buy-back, subject to shareholder approval, to satisfy future employee share incentives.

Business Operations and Strategy
ECO Animal Health to Host R&D Day Highlighting Innovations
Positive
Feb 13, 2025

ECO Animal Health Group announced an upcoming R&D Day scheduled for 13 March 2025, where the company’s leadership will present insights into their R&D pipeline to investors and analysts. This event is part of ECO’s strategy to showcase innovations in preventative animal health, aimed at driving long-term value creation and reinforcing its industry position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.