PHIBRO ANIMAL HEALTH CORP-A (PAHC) Stock Fundamental Analysis
NASDAQ:PAHC - Nasdaq - US71742Q1067 - Common Stock - Currency: USD
PAHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 195 industry peers in the Pharmaceuticals industry. PAHC scores excellent on profitability, but there are some minor concerns on its financial health. PAHC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
PAHC had positive earnings in the past year.
In the past year PAHC had a positive cash flow from operations.
Each year in the past 5 years PAHC has been profitable.
In the past 5 years PAHC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PAHC (2.41%) is better than 84.10% of its industry peers.
Looking at the Return On Equity, with a value of 11.95%, PAHC belongs to the top of the industry, outperforming 88.72% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.33%, PAHC belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PAHC is significantly below the industry average of 14.87%.
The last Return On Invested Capital (9.33%) for PAHC is above the 3 year average (7.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 11.95% | ||
| ROIC | 9.33% |
ROA(3y)2.96%
ROA(5y)3.93%
ROE(3y)10.41%
ROE(5y)14.38%
ROIC(3y)7.71%
ROIC(5y)8.07%
1.3 Margins
Looking at the Profit Margin, with a value of 2.67%, PAHC belongs to the top of the industry, outperforming 83.59% of the companies in the same industry.
PAHC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.42%, PAHC belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
In the last couple of years the Operating Margin of PAHC has declined.
PAHC has a Gross Margin (32.27%) which is in line with its industry peers.
PAHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 2.67% | ||
| GM | 32.27% |
OM growth 3Y-6.57%
OM growth 5Y-5.77%
PM growth 3Y-66.87%
PM growth 5Y-48.58%
GM growth 3Y-1.82%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PAHC is still creating some value.
PAHC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PAHC remains at a similar level compared to 5 years ago.
Compared to 1 year ago, PAHC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.51 indicates that PAHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
PAHC's Altman-Z score of 2.51 is fine compared to the rest of the industry. PAHC outperforms 72.31% of its industry peers.
The Debt to FCF ratio of PAHC is 14.83, which is on the high side as it means it would take PAHC, 14.83 years of fcf income to pay off all of its debts.
PAHC has a Debt to FCF ratio of 14.83. This is in the better half of the industry: PAHC outperforms 79.49% of its industry peers.
A Debt/Equity ratio of 2.67 is on the high side and indicates that PAHC has dependencies on debt financing.
The Debt to Equity ratio of PAHC (2.67) is worse than 80.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 14.83 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.02
WACC9.13%
2.3 Liquidity
PAHC has a Current Ratio of 2.91. This indicates that PAHC is financially healthy and has no problem in meeting its short term obligations.
PAHC has a Current ratio of 2.91. This is comparable to the rest of the industry: PAHC outperforms 49.74% of its industry peers.
A Quick Ratio of 1.23 indicates that PAHC should not have too much problems paying its short term obligations.
The Quick ratio of PAHC (1.23) is worse than 68.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
PAHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.38%, which is quite impressive.
PAHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.78% yearly.
The Revenue has grown by 19.13% in the past year. This is quite good.
PAHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)66.38%
EPS 3Y-2.15%
EPS 5Y-4.78%
EPS Q2Q%103.23%
Revenue 1Y (TTM)19.13%
Revenue growth 3Y6.89%
Revenue growth 5Y4.21%
Sales Q2Q%32.14%
3.2 Future
Based on estimates for the next years, PAHC will show a very strong growth in Earnings Per Share. The EPS will grow by 31.62% on average per year.
PAHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.87% yearly.
EPS Next Y75.71%
EPS Next 2Y39.8%
EPS Next 3Y31.62%
EPS Next 5YN/A
Revenue Next Year27.41%
Revenue Next 2Y20.41%
Revenue Next 3Y14.73%
Revenue Next 5Y2.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.40, the valuation of PAHC can be described as correct.
Based on the Price/Earnings ratio, PAHC is valued cheaply inside the industry as 88.21% of the companies are valued more expensively.
PAHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
With a Price/Forward Earnings ratio of 10.29, the valuation of PAHC can be described as very reasonable.
82.56% of the companies in the same industry are more expensive than PAHC, based on the Price/Forward Earnings ratio.
PAHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
86.15% of the companies in the same industry are more expensive than PAHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PAHC is valued cheaper than 83.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.77 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
PAHC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PAHC may justify a higher PE ratio.
A more expensive valuation may be justified as PAHC's earnings are expected to grow with 31.62% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y39.8%
EPS Next 3Y31.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, PAHC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.95, PAHC pays a better dividend. On top of this PAHC pays more dividend than 91.79% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PAHC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of PAHC has a limited annual growth rate of 0.87%.
PAHC has paid a dividend for at least 10 years, which is a reliable track record.
PAHC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.87%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
PAHC pays out 61.17% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PAHC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.17%
EPS Next 2Y39.8%
EPS Next 3Y31.62%
23.93
-0.58 (-2.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners104.89%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change23.26%
Market Cap969.88M
Analysts45
Price Target19.89 (-16.88%)
Short Float %4.64%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.48
Dividend Growth(5Y)0.87%
DP61.17%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.67%
Min EPS beat(2)18.78%
Max EPS beat(2)24.57%
EPS beat(4)4
Avg EPS beat(4)25.71%
Min EPS beat(4)18.78%
Max EPS beat(4)38.92%
EPS beat(8)6
Avg EPS beat(8)9.99%
EPS beat(12)7
Avg EPS beat(12)1.59%
EPS beat(16)9
Avg EPS beat(16)0.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)-0.2%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-3.24%
Max Revenue beat(4)4.46%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)6
Avg Revenue beat(12)-0.41%
Revenue beat(16)10
Avg Revenue beat(16)0.59%
PT rev (1m)2.63%
PT rev (3m)-17.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.92%
EPS NY rev (1m)0%
EPS NY rev (3m)6.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 10.29 | ||
| P/S | 0.81 | ||
| P/FCF | 19.77 | ||
| P/OCF | 11.11 | ||
| P/B | 3.65 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)1.93
EY8.07%
EPS(NY)2.33
Fwd EY9.72%
FCF(TTM)1.21
FCFY5.06%
OCF(TTM)2.15
OCFY9%
SpS29.38
BVpS6.56
TBVpS4.28
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 11.95% | ||
| ROCE | 11.8% | ||
| ROIC | 9.33% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 11.03% | ||
| OM | 10.42% | ||
| PM (TTM) | 2.67% | ||
| GM | 32.27% | ||
| FCFM | 4.12% |
ROA(3y)2.96%
ROA(5y)3.93%
ROE(3y)10.41%
ROE(5y)14.38%
ROIC(3y)7.71%
ROIC(5y)8.07%
ROICexc(3y)8.81%
ROICexc(5y)9.3%
ROICexgc(3y)10.51%
ROICexgc(5y)11.41%
ROCE(3y)9.76%
ROCE(5y)10.21%
ROICexcg growth 3Y-6.09%
ROICexcg growth 5Y-7.6%
ROICexc growth 3Y-4.3%
ROICexc growth 5Y-7.55%
OM growth 3Y-6.57%
OM growth 5Y-5.77%
PM growth 3Y-66.87%
PM growth 5Y-48.58%
GM growth 3Y-1.82%
GM growth 5Y-0.72%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 14.83 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 90.16% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.44% | ||
| Profit Quality | 154.31% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.51 |
F-Score5
WACC9.13%
ROIC/WACC1.02
Cap/Depr(3y)126.5%
Cap/Depr(5y)115.35%
Cap/Sales(3y)4.43%
Cap/Sales(5y)4.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.38%
EPS 3Y-2.15%
EPS 5Y-4.78%
EPS Q2Q%103.23%
EPS Next Y75.71%
EPS Next 2Y39.8%
EPS Next 3Y31.62%
EPS Next 5YN/A
Revenue 1Y (TTM)19.13%
Revenue growth 3Y6.89%
Revenue growth 5Y4.21%
Sales Q2Q%32.14%
Revenue Next Year27.41%
Revenue Next 2Y20.41%
Revenue Next 3Y14.73%
Revenue Next 5Y2.87%
EBIT growth 1Y94%
EBIT growth 3Y-0.14%
EBIT growth 5Y-1.81%
EBIT Next Year173.95%
EBIT Next 3Y45.1%
EBIT Next 5Y14.26%
FCF growth 1Y184.37%
FCF growth 3Y34.65%
FCF growth 5Y21.82%
OCF growth 1Y1728.38%
OCF growth 3Y21.94%
OCF growth 5Y13.18%