DB:PB8

Stock Analysis Report

Executive Summary

Phibro Animal Health Corporation manufactures and supplies a range of animal health and mineral nutrition products for livestock primarily in the United States.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Phibro Animal Health's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.6%

PB8

3.6%

DE Pharmaceuticals

2.8%

DE Market


1 Year Return

n/a

PB8

-1.8%

DE Pharmaceuticals

2.9%

DE Market

Return vs Industry: Insufficient data to determine how PB8 performed against the German Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how PB8 performed against the German Market.


Share holder returns

PB8IndustryMarket
7 Day-1.6%3.6%2.8%
30 Day1.3%-0.2%-0.2%
90 Day-29.6%10.8%0.9%
1 Yearn/a1.5%-1.8%6.2%2.9%
3 Yearn/a-5.8%-13.7%18.2%8.0%
5 Yearn/a-2.4%-14.4%43.1%23.6%

Price Volatility Vs. Market

How volatile is Phibro Animal Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Phibro Animal Health undervalued based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: PB8 (€19) is trading below our estimate of fair value (€35.48)

Significantly Undervalued: PB8 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: PB8 is good value based on its PE Ratio (15.6x) compared to the Pharmaceuticals industry average (31.7x).

PE vs Market: PB8 is good value based on its PE Ratio (15.6x) compared to the German market (19.7x).


Price Based on Expected Growth

Low PEG Ratio: PB8's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: PB8 is overvalued based on its PB Ratio (4x) compared to the DE Pharmaceuticals industry average (2.6x).


Next Steps

Future Growth

How is Phibro Animal Health expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

-12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PB8's earnings are forecast to decline over the next 3 years (-12.7% per year).

Earnings vs Market: PB8's earnings are forecast to decline over the next 3 years (-12.7% per year).

High Growth Earnings: PB8's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PB8's revenue (3.4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: PB8's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PB8's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has Phibro Animal Health performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PB8 has become profitable over the past 5 years, growing earnings by 14.7% per year.

Accelerating Growth: PB8's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PB8 had negative earnings growth (-15.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (0.4%).


Return on Equity

High ROE: Whilst PB8's Return on Equity (25.33%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: PB8 has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: PB8's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Phibro Animal Health's financial position?


Financial Position Analysis

Short Term Liabilities: PB8's short term assets ($466.2M) exceeds its short term liabilities ($154.2M)

Long Term Liabilities: PB8's short term assets (466.2M) exceeds its long term liabilities (356.4M)


Debt to Equity History and Analysis

Debt Level: PB8's debt to equity ratio (151%) is considered high

Reducing Debt: PB8's debt to equity ratio has reduced from 1901.4% to 151% over the past 5 years.

Debt Coverage: PB8's debt is not well covered by operating cash flow (14.5%).

Interest Coverage: PB8's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

Inventory Level: PB8 has a high level of physical assets or inventory.

Debt Coverage by Assets: PB8's debt is covered by short term assets (assets are 1.429350x debt).


Next Steps

Dividend

What is Phibro Animal Health's current dividend yield, its reliability and sustainability?

2.54%

Expected Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.9%industryaverage2.3%forecastin3Years2.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PB8's dividend (2.27%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: PB8's dividend (2.27%) is low compared to the top 25% of dividend payers in the German market (3.86%).

Stable Dividend: Whilst dividend payments have been stable, PB8 has been paying a dividend for less than 10 years.

Growing Dividend: PB8's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34%), PB8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PB8's dividends in 3 years are forecast to be well covered by earnings (37.9% payout ratio).


Next Steps

Management

What is the CEO of Phibro Animal Health's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Jack Bendheim (72yo)

5.6yrs

Tenure

US$2,721,229

Compensation

Mr. Jack Clifford Bendheim has been the President and Chief Executive Officer of Phibro Animal Health Corporation since 1988 and March 2014, respectively and serves as its Chairman. Mr. Bendheim served as  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Jack's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

56yo

Average Age

Experienced Management: PB8's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

69yo

Average Age

Experienced Board: PB8's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: PB8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$96,42105 Sep 19
E. Corcoran
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceUS$19.28

Ownership Breakdown


Management Team

  • Jack Bendheim (72yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: US$2.72m
  • Richard Johnson (70yo)

    Chief Financial Officer

    • Tenure: 17.1yrs
    • Compensation: US$653.98k
  • Daniel Bendheim (47yo)

    Executive VP of Corporate Strategy & Director

    • Tenure: 5.9yrs
  • Larry Miller (55yo)

    Chief Operating Officer

    • Tenure: 3.3yrs
    • Compensation: US$670.56k
  • George Moffett

    Managing Director of Ferro Metal & Chemical Corporation Ltd

    • Tenure: 0yrs
  • Thomas Dagger (61yo)

    Senior VP

    • Tenure: 12.9yrs
    • Compensation: US$564.07k
  • Dean Warras (50yo)

    Senior Vice President of Strategic Alliances

    • Tenure: 3.3yrs
    • Compensation: US$832.24k
  • Jonathan Bendheim (43yo)

    President of MACIE Region

    • Tenure: 1.2yrs
  • Lisa Escudero (57yo)

    Senior Vice President of Human Resources

    • Tenure: 2.6yrs
  • Ramon Fuenmayor

    President South America Region

    • Tenure: 2.3yrs

Board Members

  • Jack Bendheim (72yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: US$2.72m
  • Sam Gejdenson (71yo)

    Independent Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: US$60.00k
  • Mary Malanoski (62yo)

    Non Executive Director

    • Tenure: 15.4yrs
    • Compensation: US$40.00k
  • Carol Wrenn (58yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$60.00k
  • Tom Corcoran (72yo)

    Independent Non-Executive Director

    • Tenure: 11.4yrs
    • Compensation: US$50.00k
  • Jerry Carlson (76yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$40.00k
  • George Gunn (69yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$50.00k
  • Daniel Bendheim (47yo)

    Executive VP of Corporate Strategy & Director

    • Tenure: 5.9yrs
  • Jonathan Bendheim (43yo)

    President of MACIE Region

    • Tenure: 1.2yrs

Company Information

Phibro Animal Health Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Phibro Animal Health Corporation
  • Ticker: PB8
  • Exchange: DB
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$854.785m
  • Listing Market Cap: US$773.580m
  • Shares outstanding: 40.45m
  • Website: https://www.pahc.com

Number of Employees


Location

  • Phibro Animal Health Corporation
  • Glenpointe Centre East
  • 3rd Floor
  • Teaneck
  • New Jersey
  • 7666
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PAHCNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDApr 2014
PB8DB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2014

Biography

Phibro Animal Health Corporation 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 H ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 23:28
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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