PHIBRO ANIMAL HEALTH CORP-A (PAHC) Stock Fundamental Analysis
NASDAQ:PAHC - Nasdaq - US71742Q1067 - Common Stock - Currency: USD
Taking everything into account, PAHC scores 6 out of 10 in our fundamental rating. PAHC was compared to 198 industry peers in the Pharmaceuticals industry. While PAHC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PAHC is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year PAHC was profitable.
In the past year PAHC had a positive cash flow from operations.
PAHC had positive earnings in each of the past 5 years.
In the past 5 years PAHC always reported a positive cash flow from operatings.
1.2 Ratios
PAHC's Return On Assets of 2.41% is amongst the best of the industry. PAHC outperforms 84.34% of its industry peers.
The Return On Equity of PAHC (11.95%) is better than 88.38% of its industry peers.
PAHC has a Return On Invested Capital of 9.33%. This is amongst the best in the industry. PAHC outperforms 86.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAHC is significantly below the industry average of 42.34%.
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 83.84% of the companies in the same industry.
In the last couple of years the Profit Margin of PAHC has declined.
PAHC has a Operating Margin of 10.42%. This is amongst the best in the industry. PAHC outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of PAHC has declined.
PAHC's Gross Margin of 32.27% is in line compared to the rest of the industry. PAHC outperforms 56.06% of its industry peers.
In the last couple of years the Gross Margin of PAHC has remained more or less at the same level.
| 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
PAHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PAHC has about the same amount of shares outstanding.
Compared to 5 years ago, PAHC has about the same amount of shares outstanding.
Compared to 1 year ago, PAHC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.49 indicates that PAHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.49, PAHC is doing good in the industry, outperforming 73.74% of the companies in the same industry.
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's Debt to FCF ratio of 14.83 is fine compared to the rest of the industry. PAHC outperforms 78.79% of its industry peers.
PAHC has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PAHC (2.67) is worse than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 14.83 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.04
WACC8.94%
2.3 Liquidity
A Current Ratio of 2.91 indicates that PAHC has no problem at all paying its short term obligations.
PAHC's Current ratio of 2.91 is in line compared to the rest of the industry. PAHC outperforms 51.01% of its industry peers.
PAHC has a Quick Ratio of 1.23. This is a normal value and indicates that PAHC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PAHC (1.23) is worse than 68.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.38% over the past year.
The Earnings Per Share has been decreasing by -4.78% on average over the past years.
PAHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.13%.
Measured over the past years, PAHC shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
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
The Earnings Per Share is expected to grow by 31.62% on average over the next years. This is a very strong growth
Based on estimates for the next years, PAHC will show a small growth in Revenue. The Revenue will grow by 2.87% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.04, which indicates a correct valuation of PAHC.
Compared to the rest of the industry, the Price/Earnings ratio of PAHC indicates a rather cheap valuation: PAHC is cheaper than 88.89% of the companies listed in the same industry.
PAHC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 9.99 indicates a reasonable valuation of PAHC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAHC indicates a rather cheap valuation: PAHC is cheaper than 85.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PAHC to the average of the S&P500 Index (21.76), we can say PAHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
PAHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PAHC is cheaper than 85.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PAHC is valued cheaply inside the industry as 82.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.19 | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
The 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 2.06%, PAHC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.24, PAHC pays a better dividend. On top of this PAHC pays more dividend than 91.92% of the companies listed in the same industry.
PAHC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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
61.17% of the earnings are spent on dividend by PAHC. 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%
23.24
+0.22 (+0.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners107.05%
Inst Owner Change0.23%
Ins Owners0.42%
Ins Owner Change23.26%
Market Cap941.92M
Analysts45
Price Target19.38 (-16.61%)
Short Float %4.52%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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)-22.45%
PT rev (3m)-8.43%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)1.92%
EPS NY rev (1m)5.67%
EPS NY rev (3m)6.08%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 9.99 | ||
| P/S | 0.79 | ||
| P/FCF | 19.19 | ||
| P/OCF | 10.78 | ||
| P/B | 3.54 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)1.93
EY8.3%
EPS(NY)2.33
Fwd EY10.01%
FCF(TTM)1.21
FCFY5.21%
OCF(TTM)2.16
OCFY9.27%
SpS29.4
BVpS6.57
TBVpS4.29
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 | 2.49 |
F-Score5
WACC8.94%
ROIC/WACC1.04
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 Year156.11%
EBIT Next 3Y39.41%
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%