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 193 industry peers in the Pharmaceuticals industry. PAHC scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PAHC.
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.
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 83.94% of its industry peers.
PAHC's Return On Equity of 11.95% is amongst the best of the industry. PAHC outperforms 88.60% of its industry peers.
PAHC has a better Return On Invested Capital (9.33%) than 87.05% 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 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
PAHC has a better Profit Margin (2.67%) than 83.94% of its industry peers.
In the last couple of years the Profit Margin of PAHC has declined.
PAHC's Operating Margin of 10.42% is amongst the best of the industry. PAHC outperforms 81.87% of its industry peers.
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.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PAHC is creating some value.
The number of shares outstanding for PAHC remains at a similar level compared to 1 year ago.
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 2.69 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 2.69, PAHC is doing good in the industry, outperforming 70.47% 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.
Looking at the Debt to FCF ratio, with a value of 14.83, PAHC is in the better half of the industry, outperforming 79.79% of the companies in the same industry.
A Debt/Equity ratio of 2.67 is on the high side and indicates that PAHC has dependencies on debt financing.
PAHC's Debt to Equity ratio of 2.67 is on the low side compared to the rest of the industry. PAHC is outperformed by 80.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 14.83 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.02
WACC9.14%
2.3 Liquidity
A Current Ratio of 2.91 indicates that PAHC has no problem at all paying its short term obligations.
With a Current ratio value of 2.91, PAHC perfoms like the industry average, outperforming 49.22% of the companies in the same industry.
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 68.91% 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.
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 26.95% on average per year.
The Revenue is expected to grow by 2.87% on average over the next years.
EPS Next Y74.86%
EPS Next 2Y41.42%
EPS Next 3Y31.12%
EPS Next 5Y26.95%
Revenue Next Year27.22%
Revenue Next 2Y19.96%
Revenue Next 3Y14.04%
Revenue Next 5Y2.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 15.83, 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 85.49% of the companies listed in the same industry.
PAHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
PAHC is valuated correctly with a Price/Forward Earnings ratio of 12.84.
PAHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PAHC is cheaper than 81.35% of the companies in the same industry.
PAHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAHC is valued cheaply inside the industry as 85.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PAHC is valued cheaper than 80.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.25 | ||
| EV/EBITDA | 11.57 |
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.
PAHC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PAHC's earnings are expected to grow with 31.12% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y41.42%
EPS Next 3Y31.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, PAHC has a reasonable but not impressive dividend return.
PAHC's Dividend Yield is rather good when compared to the industry average which is at 4.00. PAHC pays more dividend than 91.19% of the companies in the same industry.
PAHC's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of PAHC has a limited annual growth rate of 0.87%.
PAHC has been paying a dividend for at least 10 years, so it has 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 2Y41.42%
EPS Next 3Y31.12%
30.56
-0.98 (-3.11%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners104.89%
Inst Owner Change-0.05%
Ins Owners0.45%
Ins Owner Change23.26%
Market Cap1.24B
Analysts45
Price Target19.89 (-34.91%)
Short Float %4.68%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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)0%
PT rev (3m)-20.41%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)-3.11%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)5.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 12.84 | ||
| P/S | 1.04 | ||
| P/FCF | 25.25 | ||
| P/OCF | 14.19 | ||
| P/B | 4.66 | ||
| P/tB | 7.13 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)1.93
EY6.32%
EPS(NY)2.38
Fwd EY7.79%
FCF(TTM)1.21
FCFY3.96%
OCF(TTM)2.15
OCFY7.05%
SpS29.38
BVpS6.56
TBVpS4.28
PEG (NY)0.21
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 | 2.69 |
F-Score5
WACC9.14%
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 Y74.86%
EPS Next 2Y41.42%
EPS Next 3Y31.12%
EPS Next 5Y26.95%
Revenue 1Y (TTM)19.13%
Revenue growth 3Y6.89%
Revenue growth 5Y4.21%
Sales Q2Q%32.14%
Revenue Next Year27.22%
Revenue Next 2Y19.96%
Revenue Next 3Y14.04%
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%