Want to see PAHC full AI Analyst Report?
Top Page
Phibro Animal Health
(NASDAQ:PAHC)
Select Model
Select Model
Rating:66Neutral
Price Target:
$39.00
▲(8.06% Upside)
Action:Reiterated
Date:08/27/26
The score is driven mainly by improved profitability and growth alongside an improving (but still leveraged) balance sheet, partially offset by weak/uncertain cash conversion in the provided cash flow data. Technicals are moderately supportive (positive MACD and price above short-term averages) but capped by being below longer-term averages. Valuation is reasonable (P/E ~15.4 with a ~1.33% yield), and the earnings call was constructive with positive FY2027 guidance, tempered by Brazil regulatory risk, near-term EBIT softness, and higher CapEx/inventory impacts on cash flow.
Positive Factors
Strong Revenue and EBITDA Growth
The combination of record revenue and faster EBITDA growth indicates stronger operating scale, improved product mix, and effective cost execution. These gains can support earnings resilience if Phibro sustains demand across its animal-health portfolio.
Negative Factors
Meaningful Leverage
Balance-sheet leverage has improved but remains material, leaving less flexibility if earnings weaken or integration costs rise. Debt obligations could constrain acquisitions, capital spending, and shareholder returns during a cyclical downturn in animal production.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and EBITDA Growth
The combination of record revenue and faster EBITDA growth indicates stronger operating scale, improved product mix, and effective cost execution. These gains can support earnings resilience if Phibro sustains demand across its animal-health portfolio.
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
$1.56B
Dividend Yield1.2%
Average Volume (3M)215.56K
Price to Earnings (P/E)16.2
Beta (1Y)0.73
Revenue Growth17.12%
EPS Growth106.40%
CountryUS
Employees2,605
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.46
Shares Outstanding21,105,570
10 Day Avg. Volume288,063
30 Day Avg. Volume215,561
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)3.31
Price to Sales (P/S)0.84
P/FCF Ratio129.22
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
$45.00Price Target Upside24.69% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.32
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:Aug 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call communicated strong operating momentum and record full-year results—double-digit revenue growth, a 39% increase in adjusted EBITDA, successful integration of the MFA acquisition, and tangible benefits from the Phibro Forward program. Management provided conservative but constructive FY2027 guidance while reserving downside for specific risks (notably the regulatory status of virginiamycin in Brazil). Cash generation was constrained in FY2026 by a large inventory build and CapEx requirements, and near-term impacts include a planned plant closure with one-time costs and a weak Performance Products segment. Overall, the positive operating performance, sizable EBITDA gains, and strategic integration successes outweigh the manageable near-term headwinds and uncertainties.Positive Updates
Record Annual Revenue
Consolidated net sales for fiscal 2026 were $1.518 billion, a 17% increase year-over-year (up $221.9 million) and described as a record for the company.
Negative Updates
Virginiamycin Regulatory Uncertainty in Brazil
Virginiamycin sales in Brazil were about $27 million in fiscal 2026. Management assumed minimal contribution in fiscal 2027 due to unresolved therapeutic-use approvals; unfavorable timing (political/election-related) could delay approvals and reduce near-term revenue and higher-margin EBITDA.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Revenue
Consolidated net sales for fiscal 2026 were $1.518 billion, a 17% increase year-over-year (up $221.9 million) and described as a record for the company.
Read all positive updates
Company Guidance
Phibro guided to fiscal 2027 net sales of $1.55–$1.60 billion (growth 2%–5%, midpoint ~$1.575B), total adjusted EBITDA of $258–$268 million (growth 1%–5%, midpoint ~$263M), adjusted diluted EPS of $3.41–$3.59 (midpoint ~$3.50) and adjusted net income of $140–$147 million (growth 6%–11%, midpoint ~$143.5M) with an adjusted effective tax rate of ~20%. The company assumed minimal Virginiamycin sales in Brazil (FY26 Virginiamycin sales were ~$27M) and expects Q1 EBIT to be negative before turning positive for the rest of the year; FY27 inventory build is expected to be ~$25–$30M (vs. $86.3M in FY26). Management said FY26 results included $10M of free cash flow (operating cash flow $69M, CapEx $59M), expects higher CapEx in FY27 to expand vaccine capacity, and projects the Chicago Heights closure will incur roughly $10M of one‑time cash costs plus ~$10M CapEx but ultimately yield ~$15–$20M of annual EBITDA benefit (mostly in FY28+); gross and net leverage at Q4 were 2.9x and 2.6x (based on $738M total debt / $656M net debt and $255M trailing‑12‑month adjusted EBITDA).Phibro Animal Health Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
28
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.52B | 1.30B | 1.02B | 977.89M | 942.26M |
| Gross Profit | 511.71M | 399.94M | 313.09M | 298.24M | 285.40M |
| EBITDA | 236.46M | 146.85M | 69.06M | 106.03M | 117.13M |
| Net Income | 99.72M | 48.26M | 2.42M | 32.61M | 49.17M |
Balance Sheet | |||||
| Total Assets | 1.50B | 1.36B | 982.18M | 971.40M | 931.70M |
| Cash, Cash Equivalents and Short-Term Investments | 81.99M | 77.04M | 114.61M | 81.28M | 91.25M |
| Total Debt | 788.77M | 761.55M | 525.46M | 509.97M | 470.48M |
| Total Liabilities | 1.12B | 1.08B | 725.54M | 688.89M | 669.26M |
| Stockholders Equity | 385.48M | 285.68M | 256.64M | 282.51M | 262.44M |
Cash Flow | |||||
| Free Cash Flow | 9.87M | 41.83M | 46.36M | -38.48M | -5.39M |
| Operating Cash Flow | 68.95M | 80.12M | 87.59M | 13.31M | 31.65M |
| Investing Cash Flow | -71.45M | -288.69M | -48.19M | -74.02M | -22.58M |
| Financing Cash Flow | -6.56M | 207.13M | -6.77M | 26.99M | 16.34M |
Phibro Animal Health Technical Analysis
Positive
36.09
Price Trends
34.47
Positive
37.72
Positive
41.62
Negative
Market Momentum
1.01
Negative
75.13
Negative
75.31
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 36.09 is above the 20-day moving average (MA) of 35.59, above the 50-day MA of 34.47, and below the 200-day MA of 41.62, indicating a neutral trend. The MACD of 1.01 indicates Negative momentum. The RSI at 75.13 is Negative, neither overbought nor oversold. The STOCH value of 75.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
39.92
1.33
3.45%
ELAN
Elanco Animal Health
24.68
7.21
41.27%
Phibro Animal Health Corporate Events
Dividends
Phibro Animal Health Announces Quarterly Cash Dividend
Positive
Jul 28, 2026
On July 28, 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 September 23, 2026, to shareh...
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%...
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.