NasdaqGM:PAHC

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

1.5%

PAHC

2.8%

US Pharmaceuticals

1.8%

US Market


1 Year Return

-51.5%

PAHC

-6.5%

US Pharmaceuticals

7.3%

US Market

Return vs Industry: PAHC underperformed the US Pharmaceuticals industry which returned -6.5% over the past year.

Return vs Market: PAHC underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

PAHCIndustryMarket
7 Day1.5%2.8%1.8%
30 Day-1.7%1.6%-0.7%
90 Day-28.7%0.01%0.06%
1 Year-50.6%-51.5%-4.3%-6.5%9.7%7.3%
3 Year-12.7%-16.2%19.4%11.0%46.3%36.9%
5 Year-4.0%-10.3%25.5%12.3%64.5%46.5%

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

Valuation

Is Phibro Animal Health undervalued compared to its fair value and its price relative to the market?

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PAHC ($21.44) is trading below our estimate of fair value ($36.79)

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


Price To Earnings Ratio

PE vs Industry: PAHC is good value based on its PE Ratio (15.8x) compared to the Pharmaceuticals industry average (16.2x).

PE vs Market: PAHC is good value based on its PE Ratio (15.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PAHC is overvalued based on its PB Ratio (4x) compared to the US Pharmaceuticals industry average (2.9x).


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?

-12.7%

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 (-12.7% per year).

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

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

Revenue vs Market: PAHC's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PAHC'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: PAHC has become profitable over the past 5 years, growing earnings by 14.7% per year.

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 (-15.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (24.3%).


Return on Equity

High ROE: Whilst PAHC'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: PAHC's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: PAHC'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: PAHC's short term assets ($466.2M) exceeds its short term liabilities ($154.2M)

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: PAHC'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?

2.24%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%3.7%industryaverage2.8%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PAHC's dividend (2.24%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PAHC's dividend (2.24%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 5 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: PAHC'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: Jack's total compensation ($USD2.72M) is about average for companies of similar size in the US market ($USD2.67M).

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: PAHC's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

69yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

BuyUS$106,05005 Sep 19
E. Corcoran
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares5,000
Max PriceUS$21.21

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: PAHC
  • Exchange: NasdaqGM
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$867.325m
  • 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 Analysis2019/10/18 00:34
End of Day Share Price2019/10/17 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.