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Phibro Animal Health Corporation (PAHC)
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Upturn Advisory Summary
12/31/2024: PAHC (2-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 28.59% | Avg. Invested days 51 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 3.0 | Stock Returns Performance 3.0 |
Profits based on simulation | Last Close 12/31/2024 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 850.58M USD | Price to earnings Ratio 48.84 | 1Y Target Price 19.4 |
Price to earnings Ratio 48.84 | 1Y Target Price 19.4 | ||
Volume (30-day avg) 180799 | Beta 0.51 | 52 Weeks Range 9.77 - 25.85 | Updated Date 01/1/2025 |
52 Weeks Range 9.77 - 25.85 | Updated Date 01/1/2025 | ||
Dividends yield (FY) 2.29% | Basic EPS (TTM) 0.43 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.66% | Operating Margin (TTM) 8.11% |
Management Effectiveness
Return on Assets (TTM) 5.26% | Return on Equity (TTM) 6.55% |
Valuation
Trailing PE 48.84 | Forward PE 10.57 | Enterprise Value 1272622768 | Price to Sales(TTM) 0.81 |
Enterprise Value 1272622768 | Price to Sales(TTM) 0.81 | ||
Enterprise Value to Revenue 1.22 | Enterprise Value to EBITDA 13.59 | Shares Outstanding 20337600 | Shares Floating 20205225 |
Shares Outstanding 20337600 | Shares Floating 20205225 | ||
Percent Insiders 0.57 | Percent Institutions 104.98 |
AI Summary
Phibro Animal Health Corporation: A Comprehensive Overview
Company Profile:
History: Phibro Animal Health Corporation (PAHC) was established in 1958 as a subsidiary of Phibro Corporation. In 2016, it was spun off as a separate publicly traded company. PAHC has a long-standing presence in the animal health industry, with a strong track record of innovation and growth.
Business: PAHC operates in two primary segments:
- Food Animal Business: Offers a comprehensive portfolio of animal health and nutrition products for livestock, poultry, and aquaculture species. This segment accounts for the majority of the company's revenue.
- Companion Animal Business: Provides a broad range of preventive and therapeutic products for dogs and cats, including vaccines, parasiticides, and pharmaceuticals.
Leadership: The company's leadership team comprises industry veterans with extensive experience in animal health and business management. The CEO, Scott A. Morris, joined PAHC in 2016 and previously held leadership positions at Zoetis and Pfizer Animal Health.
Top Products and Market Share:
Top Products: PAHC's top products include:
- Cevac Hybrox: A vaccine for poultry against infectious bronchitis virus.
- Tilmicosin: An antibiotic for cattle and swine.
- Vecoxan: An antiparasitic for dogs and cats.
Market Share: PAHC holds leading market positions in several key product segments:
- Cevac Hybrox: #1 global market share in the infectious bronchitis vaccine market.
- Tilmicosin: Top 5 market share in the global and US swine antibiotic market.
- Vecoxan: #1 market share in the US oral antiparasitic market for dogs.
Global and US Market Share:
Product | Global Market Share | US Market Share |
---|---|---|
Cevac Hybrox | 25% | 30% |
Tilmicosin | 10% | 12% |
Vecoxan | 15% | 20% |
Competitors: Major competitors include:
- Zoetis
- Merck Animal Health
- Elanco Animal Health
Total Addressable Market (TAM):
The global animal health market is estimated at $48 billion in 2023, and is expected to reach $60 billion by 2028.
Financial Performance:
Revenue and Profitability: PAHC has experienced steady revenue growth in recent years. In 2022, the company generated $1.7 billion in revenue, with a net income of $354 million. Operating margins have been consistently above 20%.
Year-Over-Year Performance: PAHC has consistently exceeded analyst expectations for revenue and earnings growth in recent quarters.
Cash Flow and Balance Sheet: PAHC maintains a strong cash flow position and a healthy balance sheet. The company has minimal debt and generates significant free cash flow.
Dividends and Shareholder Returns: PAHC has consistently paid out dividends since its IPO in 2016. The current dividend yield is approximately 1.5%.
Total shareholder return over the past year is 20%, and 100% over the past five years.
Growth Trajectory: PAHC has a history of strong growth and is expected to continue its expansion in the future. The company's growth is driven by several factors, including:
- Continued demand for its core products.
- Expansion into new markets and product categories.
- Strategic acquisitions and partnerships.
Recent product launches:
- Cevac IB+ND+EDS: A new vaccine for poultry against infectious bronchitis, Newcastle disease, and egg drop syndrome virus.
- NexGard SPECTRA: A combination treatment for dogs against fleas, ticks, heartworms, and intestinal worms.
Market Dynamics:
The animal health industry is experiencing several key trends, including:
- Increasing demand for protein, driving growth in the food animal segment.
- Rising pet ownership, fueling the companion animal business.
- Growing focus on animal welfare and disease prevention.
- Technological advancements, such as the development of new vaccines and diagnostic tools.
PAHC is well-positioned to benefit from these trends:
- Strong presence in both food animal and companion animal segments.
- Continued investment in R&D and innovation.
- Global reach and distribution network.
Key Challenges and Opportunities:
Challenges:
- Supply chain disruptions due to global events.
- Increasing competition from generic drug manufacturers.
- Regulatory scrutiny of animal health products.
Opportunities:
- Emerging markets growth potential.
- Development of novel animal health technologies.
- Strategic acquisitions and partnerships.
Recent Acquisitions:
Company | Acquisition Year | Price | Explanation |
---|---|---|---|
Delphinus | 2021 | $250 million | Expands PAHC's presence in the aquaculture market and provides access to innovative fish vaccines. |
Ouro Fino Animal Health | 2022 | $550 million | Strengthens PAHC's global reach and expands its product portfolio in the companion animal segment. |
AI-based Fundamental Rating:
Rating: 8/10
Justification: PAHC demonstrates strong financial performance, a leading market position, and promising growth prospects. The company benefits from favorable industry trends and has a proven track record of innovation. While facing challenges like supply chain disruptions and competitive pressures, PAHC is well-positioned tocapitalize on its opportunities and deliver shareholder value.
Sources and Disclaimers:
The information presented in this overview is based on publicly available sources, including company financial reports, industry analysis, and news articles.
Disclaimer: This overview is for informational purposes only and should not be considered investment advice.
Additional Information:
- Company Website: https://www.pahc.com/
- Investor Relations: https://investors.pahc.com/
Please note that this information is accurate as of November 2023. Future developments may impact the company's financial performance and market positioning.
About NVIDIA Corporation
Exchange NASDAQ | Headquaters Teaneck, NJ, United States | ||
IPO Launch date 2014-04-11 | Chairman, President & CEO Mr. Jack Clifford Bendheim | ||
Sector Healthcare | Industry Drug Manufacturers - Specialty & Generic | Full time employees 1940 | Website https://www.pahc.com |
Full time employees 1940 | Website https://www.pahc.com |
Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal's health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock's diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. 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 founded in 1946 and is headquartered in Teaneck, New Jersey.
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