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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
23.5%
Sector: -43.5%
Dividend Analysis audit
GROWTH
1.19%
Trailing Yield
$1.19
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
36%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PHIBRO ANIMAL HEALTH CORP (PAHC) receives a "Hold" rating with a composite score of 48.9/100, ranked #310 out of 4446 stocks. Key factor scores: Quality 50/100, Value 46/100, Momentum 73/100. This is quantitative analysis only — not investment advice.
PHIBRO ANIMAL HEALTH CORP (PAHC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PHIBRO ANIMAL HEALTH CORP Do?
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. PHIBRO ANIMAL HEALTH CORP (PAHC) is classified as a mid-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Jack C. Bendheim and employs approximately 1,860 people, headquartered in Teaneck, New Jersey. With a market capitalization of $2.2B, PAHC is one of the notable companies in the Healthcare sector.
PHIBRO ANIMAL HEALTH CORP (PAHC) Stock Rating — Hold (April 2026)
As of April 2026, PHIBRO ANIMAL HEALTH CORP receives a Hold rating with a composite score of 48.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PAHC ranks #310 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, PHIBRO ANIMAL HEALTH CORP ranks among stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PAHC Stock Price and 52-Week Range
PHIBRO ANIMAL HEALTH CORP (PAHC) currently trades at $57.89. The stock lost $1.20 (2.0%) in the most recent trading session. The 52-week high for PAHC is $56.30, which means the stock is currently trading 2.8% from its annual peak. The 52-week low is $16.16, putting the stock 258.2% above its annual trough. Recent trading volume was 242K shares, suggesting relatively thin trading activity.
Is PAHC Overvalued or Undervalued? — Valuation Analysis
PHIBRO ANIMAL HEALTH CORP (PAHC) carries a value factor score of 46/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.46x, compared to the Healthcare sector average of 23.63x — a premium of 29%. The price-to-book ratio stands at 7.15x, versus the sector average of 2.75x. The price-to-sales ratio is 1.70x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, PAHC trades at 18.69x EV/EBITDA, versus 6.34x for the sector.
Overall, PAHC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
PHIBRO ANIMAL HEALTH CORP Profitability — ROE, Margins, and Quality Score
PHIBRO ANIMAL HEALTH CORP (PAHC) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 23.5%, compared to the Healthcare sector average of -43.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 5.5% versus the sector average of -33.1%.
On a margin basis, PHIBRO ANIMAL HEALTH CORP reports gross margins of 32.9%, compared to 71.5% for the sector. The operating margin is 11.4% (sector: -66.1%). Net profit margin stands at 5.4%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 43.6% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PAHC Debt, Balance Sheet, and Financial Health
PHIBRO ANIMAL HEALTH CORP has a debt-to-equity ratio of 188.0%, compared to the Healthcare sector average of 32.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 3.05x, indicating strong short-term liquidity. Total debt on the balance sheet is $624M.
PAHC has a beta of 1.12, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for PHIBRO ANIMAL HEALTH CORP is 52/100, reflecting average volatility within the normal range for its sector.
PHIBRO ANIMAL HEALTH CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, PHIBRO ANIMAL HEALTH CORP reported revenue of $1.39B and earnings per share (EPS) of $0.68. Net income for the quarter was $78M. Gross margin was 32.9%. Operating income came in at $161M.
In Q2 2026, PHIBRO ANIMAL HEALTH CORP reported revenue of $374M and earnings per share (EPS) of $0.68. Net income for the quarter was $27M. Gross margin was 35.5%. Revenue grew 20.9% year-over-year compared to Q2 2025. Operating income came in at $50M.
In Q1 2026, PHIBRO ANIMAL HEALTH CORP reported revenue of $364M and earnings per share (EPS) of $0.65. Net income for the quarter was $27M. Gross margin was 32.9%. Revenue grew 39.7% year-over-year compared to Q1 2025. Operating income came in at $51M.
In FY 2025, PHIBRO ANIMAL HEALTH CORP reported revenue of $1.30B and earnings per share (EPS) of $1.19. Net income for the quarter was $48M. Gross margin was 30.9%. Revenue grew 27.4% year-over-year compared to FY 2024. Operating income came in at $110M.
Over the past 8 quarters, PHIBRO ANIMAL HEALTH CORP has demonstrated a growth trajectory, with revenue expanding from $1.02B to $1.39B. Investors analyzing PAHC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PAHC Dividend Yield and Income Analysis
PHIBRO ANIMAL HEALTH CORP (PAHC) currently pays a dividend yield of 1.2%. At this yield, a $10,000 investment in PAHC stock would generate approximately $$119.00 in annual dividend income. The net margin of 5.4% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
PAHC Momentum and Technical Analysis Profile
PHIBRO ANIMAL HEALTH CORP (PAHC) has a momentum factor score of 73/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 23/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 13/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PAHC vs Competitors — Healthcare Sector Ranking and Peer Comparison
Within the Healthcare sector, PHIBRO ANIMAL HEALTH CORP (PAHC) ranks #— out of 838 stocks based on the Blank Capital composite score. This places PAHC in the top decile of all Healthcare stocks in our coverage universe.
Comparing PAHC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PAHC vs S&P 500 (SPY) comparison to assess how PHIBRO ANIMAL HEALTH CORP stacks up against the broader market across all factor dimensions.
PAHC Next Earnings Date
No upcoming earnings date has been announced for PHIBRO ANIMAL HEALTH CORP (PAHC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PAHC? — Investment Thesis Summary
PHIBRO ANIMAL HEALTH CORP presents a balanced picture with arguments on both sides. Price momentum is positive at 73/100, suggesting the trend favors buyers.
In summary, PHIBRO ANIMAL HEALTH CORP (PAHC) earns a Hold rating with a composite score of 48.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PAHC stock.
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Institutional Research Dossier
PHIBRO ANIMAL HEALTH CORP (PAHC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Phibro Animal Health (PAHC) currently holds a 'Hold' rating, reflecting a balanced view of its growth prospects and valuation. While the company exhibits strong revenue growth and profitability metrics compared to the healthcare sector, its high P/E ratio and debt levels raise concerns. The 'Hold' rating acknowledges the company's positive momentum and strategic positioning in the animal health market, but also cautions against potential overvaluation and financial risks.
The primary driver for the 'Hold' rating is the combination of strong top-line growth and improving profitability, offset by a relatively expensive valuation and a leveraged balance sheet. Investors should closely monitor the company's ability to sustain its growth trajectory, manage its debt obligations, and maintain its competitive position in the face of evolving industry dynamics. The most critical takeaway is that PAHC presents a mixed picture, requiring careful consideration of both its opportunities and challenges before making an investment decision.
Business Strategy & Overview
Phibro Animal Health Corporation operates within the animal health industry, focusing on developing, manufacturing, and supplying a range of products for livestock, including poultry, swine, beef and dairy cattle, and aquaculture. The company's revenue streams are diversified across three segments: Animal Health, Mineral Nutrition, and Performance Products. The Animal Health segment, likely the largest contributor, offers antibacterials, anticoccidials, anthelmintics, and vaccines, addressing critical needs in livestock disease prevention and treatment. The Mineral Nutrition segment provides trace minerals and specialty products to enhance animal health and performance. The Performance Products segment caters to various industries, including personal care and industrial chemicals, diversifying the company's revenue base.
Phibro's strategic positioning involves targeting integrated poultry, swine, and cattle integrators, as well as commercial animal feed manufacturers, wholesalers, and distributors. This multi-channel approach allows for broad market penetration and access to diverse customer segments. The company's global presence, spanning the United States, Latin America, Canada, Europe, the Middle East, Africa, and the Asia Pacific, further strengthens its competitive advantage and reduces reliance on any single geographic market. The company's focus on both preventative and therapeutic solutions positions it well to capitalize on the growing demand for animal health products driven by increasing global meat consumption and a heightened focus on animal welfare.
The animal health industry is characterized by increasing regulatory scrutiny, particularly regarding the use of antibiotics in livestock. Phibro's ability to adapt to evolving regulations and develop alternative solutions, such as vaccines and nutritional supplements, will be crucial for its long-term success. Furthermore, the company faces competition from established players in the animal health market, including Zoetis and Elanco. Innovation and product differentiation are essential for maintaining market share and driving future growth. The company's product pipeline and R&D efforts will be key indicators of its ability to stay ahead of the competition and meet the evolving needs of its customers.
Phibro's historical evolution from Philipp Brothers Chemicals to Phibro Animal Health Corporation reflects a strategic shift towards the animal health market. This focus allows the company to leverage its expertise in chemical manufacturing and distribution to develop and market specialized products for livestock. The company's management team likely possesses deep industry knowledge and experience, which is critical for navigating the complexities of the animal health market and executing its growth strategy. The company's ability to successfully integrate acquisitions and expand its product portfolio will also be important drivers of future growth.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
43.6%
Sector: 10.6%
+309% VS SCTR
Economic Moat Analysis
Phibro Animal Health's economic moat appears to be narrow, primarily based on a combination of intangible assets and switching costs. The company's portfolio of animal health products, including established brands and proprietary formulations, creates a degree of customer loyalty and pricing power. These intangible assets, while not as strong as patented pharmaceuticals, provide a competitive edge over generic alternatives. The company's long-standing relationships with integrated poultry, swine, and cattle integrators also contribute to its moat, as these customers may be hesitant to switch to new suppliers due to concerns about product quality and reliability.
Switching costs in the animal health industry are moderate. While the cost of switching suppliers may not be significant in terms of direct expenses, the potential risks associated with using unproven products can be substantial. Livestock producers are highly sensitive to product performance, as even minor variations in efficacy can impact animal health and productivity. This risk aversion creates a degree of stickiness for established suppliers like Phibro, particularly for critical products such as antibacterials and anticoccidials.
However, Phibro's moat is not wide due to the presence of strong competitors and the relatively low barriers to entry in certain segments of the animal health market. Generic alternatives are readily available for many of the company's products, limiting its pricing power and market share. Furthermore, the company's reliance on commodity-based products, such as mineral nutrition supplements, exposes it to price fluctuations and competition from low-cost producers. The increasing regulatory scrutiny of antibiotic use in livestock also poses a threat to Phibro's moat, as it may need to invest in developing alternative solutions to maintain its competitive position.
The company's efficient scale is not a significant factor in its economic moat. While Phibro benefits from economies of scale in manufacturing and distribution, these advantages are not unique to the company and can be replicated by competitors. The animal health industry is not characterized by natural monopolies or significant network effects, further limiting the potential for a wide moat. The company's ability to innovate and develop differentiated products will be crucial for widening its moat and sustaining its competitive advantage over the long term.
Financial Health & Profitability
Phibro Animal Health's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a TTM revenue of $373.91 million and a revenue growth rate of 43.6% compared to the sector average of 10.7%. This indicates a robust demand for its products and effective market penetration. The company's gross margin of 32.9% is significantly lower than the sector average of 71.9%, suggesting potential inefficiencies in its cost structure or a different product mix compared to its peers. However, its operating margin of 11.4% and net margin of 5.4% are significantly higher than the sector averages of -65.2% and -54.1%, respectively, indicating strong operational efficiency and profitability.
The company's ROE of 23.5% is significantly higher than the sector average of -42.5%, demonstrating its ability to generate returns on equity. However, the company's high debt-to-equity ratio of 188.00 compared to the sector average of 30.00 raises concerns about its financial leverage. The company's total debt of $624.24 million is substantial, and its ability to manage this debt will be crucial for its long-term financial stability. The current ratio of 3.05 indicates strong liquidity and the ability to meet its short-term obligations.
Analyzing the quarterly financial history reveals a positive trend in revenue and net income. The company's revenue has consistently increased over the past few quarters, from $231.35 million in Q1 FY2024 to $373.91 million in Q2 FY2026. Similarly, net income has improved significantly, from a loss of $8.02 million in Q1 FY2024 to a profit of $27.46 million in Q2 FY2026. This indicates a successful turnaround and improved profitability. The gross margin has remained relatively stable, fluctuating between 29.3% and 35.5%, while the operating margin has shown a consistent improvement, from -0.3% in Q1 FY2024 to 13.5% in Q2 FY2026.
The absence of free cash flow data makes it difficult to assess the company's cash flow generation capabilities. However, the consistent profitability and improving margins suggest that the company is likely generating positive cash flow. The company's ability to generate free cash flow will be crucial for reducing its debt and funding future growth initiatives. Investors should closely monitor the company's cash flow performance in future quarters. Overall, Phibro's financial health is improving, but its high debt levels remain a concern. The company's ability to sustain its growth trajectory and manage its debt obligations will be key determinants of its long-term financial success.
Valuation Assessment
Phibro Animal Health's valuation presents a mixed picture. The company's P/E ratio of 74.7x is significantly higher than the sector average of 24.3x, suggesting that the stock is relatively expensive compared to its peers. This high P/E ratio may reflect investor expectations of future growth, but it also indicates a potential risk of overvaluation. The company's EV/EBITDA ratio of 13.3x is also higher than the sector average of 6.4x, further supporting the argument that the stock is relatively expensive.
However, the company's strong revenue growth and improving profitability may justify its higher valuation. The company's revenue growth rate of 43.6% is significantly higher than the sector average of 10.7%, indicating a strong growth trajectory. The company's improving operating and net margins also suggest that it is becoming more profitable over time. These factors may warrant a premium valuation compared to its peers.
The absence of free cash flow data makes it difficult to assess the company's valuation using traditional free cash flow-based methods. However, the company's consistent profitability and improving margins suggest that it is likely generating positive free cash flow. A discounted cash flow analysis, if free cash flow data were available, would provide a more comprehensive assessment of the company's intrinsic value.
Considering the company's high P/E ratio and EV/EBITDA ratio, the stock appears to be fairly valued to slightly overvalued. The 'Hold' rating reflects this balanced view, acknowledging the company's growth potential but also cautioning against potential overvaluation. Investors should closely monitor the company's future performance and adjust their valuation accordingly. A significant slowdown in revenue growth or a decline in profitability could lead to a downward revision of the stock's valuation. Conversely, continued strong growth and improving profitability could justify a higher valuation.
Risk & Uncertainty
Phibro Animal Health faces several specific risks and uncertainties that could impact its business and financial performance. One of the most significant risks is regulatory changes related to the use of antibiotics in livestock. Increasing concerns about antibiotic resistance have led to stricter regulations on antibiotic use in many countries, which could reduce demand for Phibro's antibacterial products. The company's ability to adapt to these changing regulations and develop alternative solutions, such as vaccines and nutritional supplements, will be crucial for mitigating this risk.
Another risk is competition from established players in the animal health market, such as Zoetis and Elanco. These companies have greater resources and broader product portfolios, which could give them a competitive advantage over Phibro. The company's ability to innovate and develop differentiated products will be essential for maintaining its market share and competing effectively against these larger rivals. The company's reliance on a relatively concentrated customer base also poses a risk. The loss of a major customer could have a significant impact on its revenue and profitability. The company's ability to diversify its customer base and build stronger relationships with existing customers will be important for reducing this risk.
The company's high debt levels also pose a risk to its financial stability. The company's total debt of $624.24 million is substantial, and its ability to manage this debt will be crucial for its long-term financial success. Rising interest rates could increase the company's debt servicing costs and reduce its profitability. The company's ability to generate free cash flow and reduce its debt will be important for mitigating this risk. Furthermore, fluctuations in commodity prices, particularly for trace minerals used in its mineral nutrition products, could impact its profitability. The company's ability to manage its supply chain and hedge against price fluctuations will be important for mitigating this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPhibro's strong revenue growth and improving profitability demonstrate its ability to capitalize on the growing demand for animal health products.
BULL VIEWThe company's strategic focus on preventative solutions and its diversified product portfolio position it well to navigate evolving regulatory landscapes and maintain its competitive edge.
BULL VIEWPhibro's high ROE compared to the sector indicates efficient capital allocation and strong potential for future value creation.
The Bear Case
BEAR VIEWPhibro's high P/E ratio and EV/EBITDA ratio suggest that the stock is overvalued, leaving limited upside potential for investors.
BEAR VIEWThe company's high debt levels pose a significant risk to its financial stability, particularly in a rising interest rate environment.
BEAR VIEWIncreasing regulatory scrutiny of antibiotic use in livestock could significantly reduce demand for Phibro's antibacterial products, negatively impacting its revenue and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PAHC and 4,400+ other equities.
PHIBRO ANIMAL HEALTH CORP exhibits a 97% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.5%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
32.9%
Sector: 71.5%
Operating Margin
Core business profitability
11.4%
Sector: -66.1%
Net Margin
Bottom-line profitability
5.4%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $119 annually in dividends at the current trailing rate.
