Phibro Animal Health (NasdaqGM:PAHC) - Share price, News & Analysis

Q: What is the Fair Price of PAHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PAHC ($18.7) is trading above our estimate of [[fair value]] ($14.15)

PAHC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	2/6

PAHC Stock Overview

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

Rewards

Price-To-Earnings ratio (12.9x) is below the US market (15.7x)

Earnings grew by 37.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 11.3% per year for the next 3 years

Debt is not well covered by operating cash flow

Dividend of 2.57% is not well covered by earnings

Phibro Animal Health Competitors

Atea Pharmaceuticals

NasdaqGS:AVIR

US$731.8m

Amryt Pharma

NasdaqGS:AMYT

US$505.1m

Innoviva

NasdaqGS:INVA

US$1.0b

Taro Pharmaceutical Industries

NYSE:TARO

US$1.3b

Price History & Performance

Summary of all time highs, changes and price drops for Phibro Animal Health
Historical stock prices
Current Share Price	US$18.70
52 Week High	US$26.55
52 Week Low	US$17.28
Beta	0.51
1 Month Change	-4.93%
3 Month Change	-0.16%
1 Year Change	-22.02%
3 Year Change	-39.29%
5 Year Change	-52.84%
Change since IPO	10.00%

Recent News & Updates

Jul 29

Phibro Animal Health (NASDAQ:PAHC) Has Affirmed Its Dividend Of $0.12

Phibro Animal Health Corporation's ( NASDAQ:PAHC ) investors are due to receive a payment of $0.12 per share on 28th of...

Jul 25

Phibro Animal declares $0.12 dividend

Phibro Animal (NASDAQ:PAHC) declares $0.12/share quarterly dividend, in line with previous. Forward yield 2.56% Payable Sept. 28; for shareholders of record Sept. 7; ex-div Sept. 6. See PAHC Dividend Scorecard, Yield Chart, & Dividend Growth.

May 06

Phibro Animal Health's (NASDAQ:PAHC) Dividend Will Be US$0.12

Phibro Animal Health Corporation's ( NASDAQ:PAHC ) investors are due to receive a payment of US$0.12 per share on 22nd...

Shareholder Returns

	PAHC	US Pharmaceuticals	US Market
7D	-4.4%	-3.0%	1.0%
1Y	-22.0%	1.9%	-12.9%

Return vs Industry: PAHC underperformed the US Pharmaceuticals industry which returned 1.8% over the past year.

Return vs Market: PAHC underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is PAHC's price volatile compared to industry and market?
PAHC volatility
PAHC Average Weekly Movement	5.4%
Pharmaceuticals Industry Average Movement	11.8%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.2%

Stable Share Price: PAHC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PAHC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	1,725	Jack Bendheim	https://www.pahc.com

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.

Phibro Animal Health Fundamentals Summary

How do Phibro Animal Health's earnings and revenue compare to its market cap?
PAHC fundamental statistics
Market Cap	US$757.42m
Earnings (TTM)	US$58.81m
Revenue (TTM)	US$907.27m

12.9x

P/E Ratio

0.8x

P/S Ratio

Is PAHC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAHC income statement (TTM)
Revenue	US$907.27m
Cost of Revenue	US$630.39m
Gross Profit	US$276.88m
Other Expenses	US$218.07m
Earnings	US$58.81m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	1.45
Gross Margin	30.52%
Net Profit Margin	6.48%
Debt/Equity Ratio	155.8%

How did PAHC perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

33%

Payout Ratio

Does PAHC pay a reliable dividends?

See PAHC dividend history and benchmarks

When do you need to buy PAHC by to receive an upcoming dividend?
Phibro Animal Health dividend dates
Ex Dividend Date	Sep 06 2022
Dividend Pay Date	Sep 28 2022
Days until Ex dividend	29 days
Days until Dividend pay date	51 days

Does PAHC pay a reliable dividends?

See PAHC dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is PAHC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PAHC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PAHC. This is calculated by dividing PAHC's market cap by their current preferred multiple.
What is PAHC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$757.42m

PAHC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	10.5x
PEG Ratio	-1.1x

Price to Earnings Ratio vs Peers

How does PAHC's PE Ratio compare to its peers?

PAHC PE Ratio vs Peers

The above table shows the PE ratio for PAHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	46.6x
AVIR Atea Pharmaceuticals	15.1x	45.3%	US$731.8m
AMYT Amryt Pharma	180.7x	73.5%	US$505.1m
INVA Innoviva	10.1x	n/a	US$1.0b
TARO Taro Pharmaceutical Industries	14.7x	n/a	US$1.3b
PAHC Phibro Animal Health	12.9x	-11.3%	US$757.4m

Price-To-Earnings vs Peers: PAHC is good value based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (46.6x).

Price to Earnings Ratio vs Industry

How does PAHC's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Earnings vs Industry: PAHC is good value based on its Price-To-Earnings Ratio (12.9x) compared to the US Pharmaceuticals industry average (19.3x)

Price to Earnings Ratio vs Fair Ratio

What is PAHC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PAHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.9x
Fair PE Ratio	13.9x

Price-To-Earnings vs Fair Ratio: PAHC is good value based on its Price-To-Earnings Ratio (12.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.9x).

Share Price vs Fair Value

What is the Fair Price of PAHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PAHC ($18.7) is trading above our estimate of fair value ($14.15)

Significantly Below Fair Value: PAHC is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Phibro Animal Health forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-11.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAHC's earnings are forecast to decline over the next 3 years (-11.3% per year).

Earnings vs Market: PAHC's earnings are forecast to decline over the next 3 years (-11.3% per year).

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

Revenue vs Market: PAHC's revenue (4.1% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: PAHC's revenue (4.1% 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 low in 3 years time (18.8%).

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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-8.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PAHC has high quality earnings.

Growing Profit Margin: PAHC's current net profit margins (6.5%) are higher than last year (5.4%).

Past Earnings Growth Analysis

Earnings Trend: PAHC's earnings have declined by 8.1% per year over the past 5 years.

Accelerating Growth: PAHC's earnings growth over the past year (37.1%) exceeds its 5-year average (-8.1% per year).

Earnings vs Industry: PAHC earnings growth over the past year (37.1%) exceeded the Pharmaceuticals industry 15.5%.

Return on Equity

High ROE: Whilst PAHC's Return on Equity (22.03%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Phibro Animal Health's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PAHC's short term assets ($546.5M) exceed its short term liabilities ($187.1M).

Long Term Liabilities: PAHC's short term assets ($546.5M) exceed its long term liabilities ($462.1M).

Debt to Equity History and Analysis

Debt Level: PAHC's net debt to equity ratio (119.8%) is considered high.

Reducing Debt: PAHC's debt to equity ratio has reduced from 221.8% to 155.8% over the past 5 years.

Debt Coverage: PAHC's debt is not well covered by operating cash flow (8%).

Interest Coverage: PAHC's interest payments on its debt are well covered by EBIT (6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.57%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: PAHC's dividend (2.57%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: PAHC's dividend (2.57%) is low compared to the top 25% of dividend payers in the US market (4.09%).

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 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.1%), PAHC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (2167.4%), PAHC's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure

CEO

Jack Bendheim (75 yo)

34.58yrs

Tenure

US$4,001,319

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 ($USD4.00M) is about average for companies of similar size in the US market ($USD3.94M).

Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: PAHC's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: PAHC's board of directors are seasoned and experienced ( 14.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30