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1. Company Snapshot

1.a. Company Description

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.


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 operates in the United States, 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.Phibro Animal Health Corporation was incorporated in 2014 and is headquartered in Teaneck, New Jersey.

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1.b. Last Insights on PAHC

Phibro Animal Health Corporation's recent performance has been negatively impacted by unfavorable foreign exchange headwinds, which may hamper the company's operations. Despite the company's Q2 earnings and revenue beat, with quarterly earnings of $0.54 per share, surpassing estimates, and a strong performance in the Animal Health business, the foreign exchange issue remains a concern. The company's reliance on emerging markets, while a potential growth driver, also exposes it to currency fluctuations.

1.c. Company Highlights

2. Phibro Animal Health Delivers Stellar Q1 FY2026 Results

Phibro Animal Health Corporation reported a 40% increase in consolidated net sales for the first quarter of fiscal year 2026, ending September 30, 2025, to $363.9 million. The company's adjusted EBITDA for the Animal Health segment increased 85% to $74.9 million. The earnings per share (EPS) came out at $0.73, beating analyst estimates of $0.59. The strong financial performance was driven by the Animal Health segment, which grew 55%, driven by 81% growth in Medicated Feed Additives, 13% growth in Nutritional Specialties, and 25% growth in vaccines.

Publication Date: Nov -21

📋 Highlights
  • Record Quarterly Sales Growth:: Consolidated net sales surged 40% to $363.9M, driven by 55% growth in the Animal Health segment.
  • Medicated Feed Additives (MFA) Outperform:: MFA sales rose 81%, contributing $80.5M from Zoetis acquisition and 6% growth in legacy MFA.
  • Adjusted EBITDA Surge:: Animal Health’s adjusted EBITDA jumped 85% to $74.9M, reflecting strong margin expansion.
  • Full-Year Guidance Raised:: Net sales now projected at $1.425B–$1.475B (10–14% growth) and adjusted EBITDA at $230M–$240M (25–30% growth).
  • Strong Free Cash Flow & Leverage:: Generated $34M free cash flow in 12 months, with gross leverage at 3.3x and net leverage at 2.9x.

Segmental Performance

The legacy MFA business continues to grow, with a 6% increase in the quarter, driven by strong demand across poultry, swine, and beef cattle segments. The Zoetis MFA business contributed $80.5 million in sales, with the acquired portfolio integrating well into Phibro's operations. The company's Phibro Forward initiatives are enhancing operational discipline, accelerating innovation, and sharpening focus on strategic growth.

Business Development Strategy

Phibro's business development strategy focuses on production animals, specifically nutritional and vaccine sides, but also explores opportunities in companion animals, targeting unique areas where they can play a significant role. The company launched Restoris, a proprietary dental gel for dogs, and licensed an early-stage therapeutic compound targeting canine periodontal disease, signaling a higher focus on companion animals.

Cash Flow and Leverage

The company generated $34 million of positive free cash flow for the 12 months ended September 30, 2025, and had a gross leverage ratio of 3.3x and a net leverage ratio of 2.9x. The company paid a quarterly dividend of $0.12 per share, or $4.9 million in aggregate. With a 'Free Cash Flow Yield (%)' of 2.07 and a 'Net Debt / EBITDA' of 3.1, the company's cash flow generation and leverage profile appear reasonable.

Valuation

With a 'P/E Ratio' of 24.39 and an expected revenue growth rate of 14.6% next year, the company's valuation appears to be in line with its growth prospects. Additionally, the 'EV/EBITDA' ratio of 12.67 suggests that the company's enterprise value is reasonable relative to its EBITDA. Analysts should continue to monitor the company's ability to execute on its growth strategy and maintain its operational discipline.

3. NewsRoom

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3 Momentum Anomaly Stocks to Buy as Markets Gear Up for 2025 Swansong

Dec -03

Source: zacks.com

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Brandes Investment Partners LP Lowers Stock Position in Phibro Animal Health Corporation $PAHC

Dec -03

Source: defenseworld.net

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Four PEG-Driven GARP Winners for the Uncertainty of November 2025

Nov -20

Source: zacks.com

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Phibro (PAHC) Upgraded to Strong Buy: Here's What You Should Know

Nov -20

Source: zacks.com

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4 Stocks Trading Near 52-Week High With More Upside Potential

Nov -20

Source: zacks.com

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Best Momentum Stock to Buy for Nov. 20th

Nov -20

Source: zacks.com

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Best Income Stocks to Buy for Nov. 20th

Nov -20

Source: zacks.com

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Phibro Animal Health Corporation (PAHC) Q1 2026 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.97%)

6. Segments

Animal Health

Expected Growth: 3.0%

Phibro's Animal Health segment growth is driven by increasing demand for animal protein, rising pet ownership, and growing awareness of animal health. The segment benefits from its diversified product portfolio, including vaccines, antibiotics, and nutritional products, as well as its strong presence in emerging markets.

Mineral Nutrition

Expected Growth: 2.8%

Phibro Animal Health Corporation's Mineral Nutrition segment growth of 2.8% is driven by increasing demand for animal protein, expansion in emerging markets, and a shift towards more sustainable and efficient farming practices. Additionally, the company's product portfolio, including its flagship OmniGen and Microbial products, continues to gain traction with customers, contributing to the segment's growth.

Performance Products

Expected Growth: 3.2%

Phibro's Performance Products segment growth of 3.2% is driven by increasing demand for nutritional specialty products, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on innovative product development, such as its AminoFocus line, has contributed to growth. Furthermore, the rising trend of animal health and wellness has led to increased adoption of Phibro's products, resulting in sustained revenue growth.

7. Detailed Products

Vaccines

Phibro Animal Health Corporation offers a range of vaccines for poultry, swine, and cattle to prevent diseases and improve animal health.

Nutritional Specialty Products

Phibro's nutritional specialty products include vitamins, minerals, and amino acids that enhance animal nutrition and health.

Medicated Feed Additives

Phibro's medicated feed additives help prevent and treat diseases in animals, improving their health and productivity.

Microbial Products

Phibro's microbial products include probiotics and prebiotics that promote animal health and well-being.

Diagnostic and Monitoring Services

Phibro's diagnostic and monitoring services help identify and manage diseases in animals, improving their health and productivity.

8. Phibro Animal Health Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Phibro Animal Health Corporation faces moderate threat from substitutes, as there are limited alternatives to its animal health products. However, the company's focus on innovation and R&D helps it stay ahead of potential substitutes.

Bargaining Power Of Customers

Phibro Animal Health Corporation's customers, primarily veterinarians and farmers, have limited bargaining power due to the company's strong brand reputation and diversified product portfolio.

Bargaining Power Of Suppliers

Phibro Animal Health Corporation's suppliers, primarily manufacturers of active pharmaceutical ingredients, have moderate bargaining power due to the company's dependence on a few key suppliers.

Threat Of New Entrants

Phibro Animal Health Corporation faces low threat from new entrants due to the high barriers to entry, including regulatory hurdles and significant R&D investments required to develop animal health products.

Intensity Of Rivalry

Phibro Animal Health Corporation operates in a highly competitive animal health industry, with several established players competing for market share. The company's focus on innovation and strategic partnerships helps it maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.35%
Debt Cost 5.84%
Equity Weight 35.65%
Equity Cost 7.10%
WACC 6.29%
Leverage 180.51%

11. Quality Control: Phibro Animal Health Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Phibro Animal Health

A-Score: 4.9/10

Value: 2.7

Growth: 5.2

Quality: 4.2

Yield: 4.0

Momentum: 9.5

Volatility: 4.0

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Radius Health

A-Score: 4.9/10

Value: 6.8

Growth: 3.4

Quality: 1.4

Yield: 5.0

Momentum: 9.0

Volatility: 3.7

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OptiNose

A-Score: 4.4/10

Value: 7.4

Growth: 4.4

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 4.7

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Aquestive Therapeutics

A-Score: 4.4/10

Value: 8.0

Growth: 3.7

Quality: 5.8

Yield: 0.0

Momentum: 7.5

Volatility: 1.7

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ProPhase Labs

A-Score: 3.3/10

Value: 7.6

Growth: 0.3

Quality: 3.8

Yield: 3.0

Momentum: 5.0

Volatility: 0.3

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SCYNEXIS

A-Score: 3.2/10

Value: 7.8

Growth: 5.4

Quality: 4.6

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.16$

Current Price

39.16$

Potential

-0.00%

Expected Cash-Flows