Phibro Animal Health (PAHC) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: 1.13%
• Average Volume (3M): 263.54K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.18
• Revenue Growth: 27.37%
• EPS Growth: 1898.99%
• Country: US
• Employees: 1,940
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.57
• Shares Outstanding: 20,367,575
• 10 Day Avg. Volume: 237,748
• 30 Day Avg. Volume: 263,539
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 4.31
• Enterprise Value/Ebitda: 11.96
• 1Y Price Target: $35.75
• Price Target Upside: -15.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $46.00 ▲(8.67% Upside)

Phibro Animal Health's overall stock score is driven by strong earnings call results and positive technical indicators, indicating growth potential. However, high leverage and valuation concerns, along with liquidity challenges, temper the outlook. The company's strategic initiatives and optimistic guidance provide a positive long-term view, but short-term caution is advised due to valuation and leverage risks.

Positive Factors

Strong Revenue Growth

The significant revenue growth indicates strong demand for Phibro's products and effective market penetration, supporting long-term business expansion and stability.

Phibro Forward Strategy

The Phibro Forward strategy enhances operational efficiency and innovation, positioning the company for sustained growth and competitive advantage in the animal health industry.

Licensing Agreement

The new licensing agreement expands Phibro's product portfolio in companion animal health, potentially opening new revenue streams and strengthening market position.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth opportunities and potentially impacting long-term financial stability.

Low Net Profit Margins

Low net profit margins may hinder the company's ability to reinvest in its business and compete effectively, affecting long-term profitability and shareholder returns.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity issues, limiting the company's ability to fund operations and growth initiatives, impacting long-term sustainability.

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 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 Money

Phibro 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 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: 42.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 42.33 is above the 20-day moving average (MA) of 39.06, above the 50-day MA of 37.73, and above the 200-day MA of 26.99, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 65.64 is Neutral, neither overbought nor oversold. The STOCH value of 79.86 is Neutral, 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	$64.68B	25.11	52.54%	1.32%	5.27%	13.72%
PAHC	71 Outperform	$1.72B	35.68	17.80%	1.13%	27.37%	1898.99%
ELAN	71 Outperform	$10.95B	25.27	6.83%	―	-0.18%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Phibro Animal Health Corporate Events

Phibro Animal Health Corp’s Earnings Call Highlights Robust Growth

Phibro Animal Health Corp’s recent earnings call conveyed a robust performance, underscored by substantial growth in key areas, particularly the Animal Health segment. The company expressed optimism for the upcoming fiscal year, driven by the successful implementation of the Phibro Forward strategy. However, the call also highlighted challenges, including a decline in legacy MFA net sales and increased SG&A and interest expenses.

Phibro Animal Health Faces AI-Driven Risks Threatening Business Stability

Phibro Animal Health Corp faces significant risks associated with its use of machine learning and artificial intelligence, as these rapidly evolving technologies can lead to operational, compliance, and reputational challenges. The unpredictability of AI algorithms, which may produce irrelevant or biased results, poses potential legal and ethical issues. Any disruption in AI systems, whether internal or from third-party providers, could lead to operational delays and challenges. These factors collectively threaten to materially impact Phibro’s business operations, financial health, and market standing.

Phibro Animal Health Reports Strong Fiscal Year Results

Phibro Animal Health Corporation is a global leader in animal health and mineral nutrition, providing solutions to enhance the health of farm and companion animals. The company operates primarily in the animal health sector, offering a diverse portfolio that includes medicated feed additives, nutritional specialties, and vaccines.

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.

The most recent analyst rating on (PAHC) stock is a Sell with a $13.00 price target. To see the full list of analyst forecasts on Phibro Animal Health stock, see the PAHC Stock Forecast page.