Phibro Animal Health
Market Cap
US$1.0b
Last Updated
2020/07/12 23:57 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet second-rate dividend payer.
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
Stable Share Price: PAHC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.7%
PAHC
-0.6%
US Pharmaceuticals
2.3%
US Market
1 Year Return
-17.7%
PAHC
4.7%
US Pharmaceuticals
6.7%
US Market
Return vs Industry: PAHC underperformed the US Pharmaceuticals industry which returned 4.7% over the past year.
Return vs Market: PAHC underperformed the US Market which returned 6.7% over the past year.
Shareholder returns
| PAHC | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.7% | -0.6% | 2.3% |
| 30 Day | -1.8% | 2.8% | 7.4% |
| 90 Day | 1.3% | 1.4% | 17.9% |
| 1 Year | -16.0%-17.7% | 7.5%4.7% | 9.0%6.7% |
| 3 Year | -30.2%-33.2% | 22.4%13.5% | 36.6%27.7% |
| 5 Year | -29.3%-34.3% | 24.2%10.0% | 64.2%46.1% |
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
2 months ago | Simply Wall St
Did Changing Sentiment Drive Phibro Animal Health's (NASDAQ:PAHC) Share Price Down By 33%?2 months ago | Simply Wall St
How Does Phibro Animal Health's (NASDAQ:PAHC) P/E Compare To Its Industry, After Its Big Share Price Gain?3 months ago | Simply Wall St
Should You Use Phibro Animal Health's (NASDAQ:PAHC) Statutory Earnings To Analyse It?Valuation
Is Phibro Animal Health undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PAHC ($25.1) is trading below our estimate of fair value ($89.31)
Significantly Below Fair Value: PAHC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PAHC is poor value based on its PE Ratio (27.7x) compared to the US Pharmaceuticals industry average (20.4x).
PE vs Market: PAHC is poor value based on its PE Ratio (27.7x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: PAHC is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: PAHC is overvalued based on its PB Ratio (5.2x) compared to the US Pharmaceuticals industry average (3.3x).
Next Steps
Future Growth
How is Phibro Animal Health forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
8.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAHC's forecast earnings growth (8.5% per year) is above the savings rate (2.2%).
Earnings vs Market: PAHC's earnings (8.5% per year) are forecast to grow slower than the US market (22.9% per year).
High Growth Earnings: PAHC's earnings are forecast to grow, but not significantly.
Revenue vs Market: PAHC's revenue (3.2% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: PAHC's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PAHC's Return on Equity is forecast to be high in 3 years time (21.7%)
Next Steps
Past Performance
How has Phibro Animal Health performed over the past 5 years?
-5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAHC has high quality earnings.
Growing Profit Margin: PAHC's current net profit margins (4.5%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: PAHC's earnings have declined by -5.2% per year over the past 5 years.
Accelerating Growth: PAHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PAHC had negative earnings growth (-45.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (16.1%).
Return on Equity
High ROE: PAHC's Return on Equity (18.8%) is considered low.
Next Steps
Financial Health
How is Phibro Animal Health's financial position?
Financial Position Analysis
Short Term Liabilities: PAHC's short term assets ($438.2M) exceed its short term liabilities ($161.2M).
Long Term Liabilities: PAHC's short term assets ($438.2M) exceed its long term liabilities ($419.5M).
Debt to Equity History and Analysis
Debt Level: PAHC's debt to equity ratio (191.5%) is considered high.
Reducing Debt: PAHC's debt to equity ratio has reduced from 1237% to 191.5% over the past 5 years.
Debt Coverage: PAHC's debt is not well covered by operating cash flow (18.8%).
Interest Coverage: PAHC's interest payments on its debt are well covered by EBIT (5.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Phibro Animal Health current dividend yield, its reliability and sustainability?
1.91%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PAHC's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: PAHC's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (4.6%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PAHC has been paying a dividend for less than 10 years.
Growing Dividend: PAHC's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (52.9%), PAHC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PAHC's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Jack Bendheim (73yo)
6.33yrs
Tenure
US$2,721,229
Compensation
Mr. Jack Clifford Bendheim has been the President and Chief Executive Officer of Phibro Animal Health Corporation since 1988 and March 2014, respectively and serves as its Chairman. Mr. Bendheim served as ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD2.72M) is about average for companies of similar size in the US market ($USD3.17M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.33yrs | US$2.72m | 50% $507.7m | |
| Chief Financial Officer | 17.83yrs | US$653.98k | no data | |
| Chief Operating Officer | 4yrs | US$670.56k | no data | |
| Senior VP | 13.67yrs | US$564.07k | no data | |
| Senior Vice President of Strategic Alliances | 4yrs | US$832.24k | no data | |
| Senior Vice President of Human Resources | 3.33yrs | no data | no data | |
| Executive VP of Corporate Strategy & Director | 6.67yrs | no data | no data | |
| President of MACIE Region | 1.92yrs | no data | no data | |
| Managing Director of Ferro Metal & Chemical Corporation Ltd | no data | no data | no data | |
| President South America Region | 3.08yrs | no data | no data |
5.2yrs
Average Tenure
57yo
Average Age
Experienced Management: PAHC's management team is seasoned and experienced (5.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.33yrs | US$2.72m | 50% $507.7m | |
| Executive VP of Corporate Strategy & Director | 6.67yrs | no data | no data | |
| President of MACIE Region | 1.92yrs | no data | no data | |
| Independent Non-Executive Director | 16.5yrs | US$60.00k | no data | |
| Independent Non Executive Director | 16.17yrs | US$40.00k | no data | |
| Independent Director | 10yrs | US$60.00k | 0.0025% $25.1k | |
| Independent Non-Executive Director | 12.17yrs | US$50.00k | 0.049% $502.0k | |
| Independent Director | 12.5yrs | US$40.00k | no data |
12.2yrs
Average Tenure
67.5yo
Average Age
Experienced Board: PAHC's board of directors are seasoned and experienced ( 12.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Phibro Animal Health Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Phibro Animal Health Corporation
- Ticker: PAHC
- Exchange: NasdaqGM
- Founded:
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$1.015b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PAHC | NasdaqGM (Nasdaq Global Market) | Yes | Class A Common Stock | US | USD | Apr 2014 |
| PB8 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Apr 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 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 also operates in 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. The company is headquartered in Teaneck, New Jersey. Phibro Animal Health Corporation is a subsidiary of BFI Co., LLC.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/12 23:57 |
| End of Day Share Price | 2020/07/10 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/06/30 |
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.