Phibro Animal Health Corp (PAHC) stock analysis

P/E below its 5-year median

Phibro Animal Health's P/E of 14.3 is below its own 5-year median of 20.7.

P/E below the industry

Phibro Animal Health's P/E of 14.3 is below the Drugs median of 25.0.

EV/EBITDA below its 5-year median

Phibro Animal Health's EV/EBITDA of 8.1 is below its 5-year median of 9.4.

P/B above the industry

Phibro Animal Health's price-to-book of 3.50 is above the Drugs median of 2.09.

Trading below fair value

The share price of $35.97 is below our fair value estimate of $62.14.

Margin of safety over 20%

The price is 42.1% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 15.8% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 44.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 51.5% over the last twelve months, against a 5-year average of 12.9% a year.

Growing faster than the industry

Revenue grew 10.1% over the last twelve months; the Drugs median is 7.7%.

Guidance raised

Phibro Animal Health raised its year ending June 30, 2027 Adjusted net income growth outlook on Aug 26, 2026.

Gross margin improving

Gross margin was 33.8% over the last twelve months, against 31.2% a year earlier.

Return on equity over 15%

Return on equity was 28.2% over the last twelve months and averaged 16.0% over five years.

Return on capital over 10%

Return on invested capital was 15.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Phibro Animal Health's return on equity of 28.2% is above the Drugs median of -57.0%.

Earnings grew over 5 years

Net income grew 12.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 6.7% over the last twelve months, against a 5-year average of 3.8%.

Net margin above the industry

Phibro Animal Health's net margin of 6.7% is above the Drugs median of -53.5%.

High debt

Debt is 146% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 128% five years ago to 146%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.0% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 4.2 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 3.20 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.10; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Phibro Animal Health paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Phibro Animal Health yields 1.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 19.0% of net income.

Covered by free cash flow

Dividends take 89.9% of free cash flow.