Phibro Animal Health Corp (NASDAQ: PAHC)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001069899
Market Cap 2.15 Bn
P/B 6.48
P/E 23.38
P/S 1.47
ROIC (Qtr) 12.02
Div Yield % 0.90
Rev 1y % (Qtr) 20.90
Total Debt (Qtr) 731.24 Mn
Debt/Equity (Qtr) 2.20

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 55.49M provide 2.69x coverage of short-term debt 20.64M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 93.08M provides strong 82.30x coverage of stock compensation 1.13M, indicating sustainable incentive practices.
  • Tangible assets of 1.31B provide robust 10.22x coverage of other current liabilities 128.44M, indicating strong asset backing.
  • Operating cash flow of 93.08M fully covers other non-current liabilities 80.22M by 1.16x, showing strong long-term stability.
  • Cash reserves of 55.49M provide ample 12.92x coverage of acquisition spending 4.30M, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of 93.08M barely covers its investment activities of (63.48M), with a coverage ratio of -1.47, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 55.49M against inventory of 517.35M, the 0.11 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 93.08M provides thin coverage of dividend payments of (19.46M) with a -4.78 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 47.29M represents just -2.04x of debt issuance (23.18M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 50.75M relative to operating cash flow of 93.08M, which is 0.55x suggests significant maintenance capital requirements affecting free cash flow.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 60.50 Bn 29.70 7.78 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 56.17 Bn 77.42 1.96 36.56 Bn
3 HLN Haleon plc 50.10 Bn 27.80 3.57 -
4 TEVA Teva Pharmaceutical Industries Ltd 39.77 Bn 28.20 2.30 17.09 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.67 Bn 17.04 6.93 0.00 Bn
6 VTRS Viatris Inc 17.75 Bn 22.09 1.06 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.02 Bn 32.76 5.23 0.43 Bn
8 RGC Regencell Bioscience Holdings Ltd 13.94 Bn -3,890.00 0.00 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.01 32.39
EV to Cash from Ops. EV/CFO 30.33 -110.47
EV to Debt EV to Debt 3.86 345.43
EV to EBIT EV/EBIT 16.80 -42.53
EV to EBITDA EV/EBITDA 12.86 -44.40
EV to Free Cash Flow [EV/FCF] EV/FCF 59.70 -54.30
EV to Market Cap EV to Market Cap 1.31 -3.42
EV to Revenue EV/Rev 1.93 -1,175.08
Price to Book Value [P/B] P/B 6.48 36.75
Price to Earnings [P/E] P/E 23.38 -135.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.73 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 21.10 0.49
Dividend per Basic Share Div per Share (Qtr) 0.48 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 41.13 3.93
Interest Coverage Int. cover (Qtr) 4.02 -38.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -13.89 -148.82
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.28 45,342.22
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 2.85
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 258.89 27.06
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 82.14 19.86
EBIT Growth (1y) % EBIT 1y % (Qtr) 181.24 86.71
EBT Growth (1y) % EBT 1y % (Qtr) 273.59 84.03
EPS Growth (1y) % EPS 1y % (Qtr) 372.92 -17.49
FCF Growth (1y) % FCF 1y % (Qtr) 208.53 -53.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 32.63 26.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.04 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.02
Cash Ratio Cash Ratio (Qtr) 0.20 2.11
Current Ratio Curr Ratio (Qtr) 3.05 3.95
Debt to Equity Ratio Debt/Equity (Qtr) 2.20 -1.12
Interest Cover Ratio Int Coverage (Qtr) 4.02 -38.53
Times Interest Earned Times Interest Earned (Qtr) 4.02 -38.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.90 -63,232.43
EBIT Margin % EBIT Margin % (Qtr) 11.47 -64,062.36
EBT Margin % EBT Margin % (Qtr) 8.62 -67,582.30
Gross Margin % Gross Margin % (Qtr) 31.90 8,439.27
Net Profit Margin % Net Margin % (Qtr) 6.30 -67,583.72