PHIBRO ANIMAL HEALTH CORP-A (PAHC) Stock Fundamental Analysis
NASDAQ:PAHC - Nasdaq - US71742Q1067 - Common Stock - Currency: USD
Overall PAHC gets a fundamental rating of 6 out of 10. We evaluated PAHC against 197 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
PAHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PAHC (1.50%) is better than 84.77% of its industry peers.
With an excellent Return On Equity value of 7.83%, PAHC belongs to the best of the industry, outperforming 87.31% of the companies in the same industry.
PAHC has a Return On Invested Capital of 7.68%. This is amongst the best in the industry. PAHC outperforms 85.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAHC is significantly below the industry average of 40.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 7.83% | ||
| ROIC | 7.68% |
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 (1.75%) than 83.76% of its industry peers.
In the last couple of years the Profit Margin of PAHC has declined.
The Operating Margin of PAHC (9.25%) is better than 80.20% of its industry peers.
In the last couple of years the Operating Margin of PAHC has declined.
PAHC's Gross Margin of 32.00% is in line compared to the rest of the industry. PAHC outperforms 56.85% 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 | 9.25% | ||
| PM (TTM) | 1.75% | ||
| GM | 32% |
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) below the Cost of Capital (WACC), PAHC is destroying value.
Compared to 1 year ago, PAHC has about the same amount of shares outstanding.
PAHC has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for PAHC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.27 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 2.27, PAHC is doing good in the industry, outperforming 73.10% of the companies in the same industry.
PAHC has a debt to FCF ratio of 49.14. This is a negative value and a sign of low solvency as PAHC would need 49.14 years to pay back of all of its debts.
PAHC's Debt to FCF ratio of 49.14 is fine compared to the rest of the industry. PAHC outperforms 76.14% of its industry peers.
A Debt/Equity ratio of 2.99 is on the high side and indicates that PAHC has dependencies on debt financing.
PAHC has a worse Debt to Equity ratio (2.99) than 79.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.99 | ||
| Debt/FCF | 49.14 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.89
WACC8.61%
2.3 Liquidity
PAHC has a Current Ratio of 3.20. This indicates that PAHC is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 3.20, PAHC perfoms like the industry average, outperforming 54.31% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that PAHC should not have too much problems paying its short term obligations.
PAHC has a worse Quick ratio (1.37) than 67.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
PAHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.23%, which is quite impressive.
The Earnings Per Share has been decreasing by -4.78% on average over the past years.
The Revenue has grown by 12.64% in the past year. This is quite good.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)41.23%
EPS 3Y-2.15%
EPS 5Y-4.78%
EPS Q2Q%63.64%
Revenue 1Y (TTM)12.64%
Revenue growth 3Y6.89%
Revenue growth 5Y4.21%
Sales Q2Q%23.77%
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 24.35% on average per year.
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 Y65.64%
EPS Next 2Y34%
EPS Next 3Y24.35%
EPS Next 5YN/A
Revenue Next Year27.51%
Revenue Next 2Y18.49%
Revenue Next 3Y12.77%
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
PAHC is valuated reasonably with a Price/Earnings ratio of 10.74.
Compared to the rest of the industry, the Price/Earnings ratio of PAHC indicates a rather cheap valuation: PAHC is cheaper than 89.85% 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 28.29.
PAHC is valuated reasonably with a Price/Forward Earnings ratio of 8.09.
Based on the Price/Forward Earnings ratio, PAHC is valued cheaper than 91.37% 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAHC indicates a rather cheap valuation: PAHC is cheaper than 84.77% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAHC indicates a somewhat cheap valuation: PAHC is cheaper than 78.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.69 | ||
| EV/EBITDA | 9.81 |
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.
PAHC's earnings are expected to grow with 24.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y34%
EPS Next 3Y24.35%
5. Dividend
5.1 Amount
PAHC has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
PAHC's Dividend Yield is rather good when compared to the industry average which is at 4.29. PAHC pays more dividend than 92.39% of the companies in the same industry.
PAHC's Dividend Yield is comparable with the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
100.64% 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.
DP100.64%
EPS Next 2Y34%
EPS Next 3Y24.35%
17.29
+0.46 (+2.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners107.05%
Inst Owner Change-0.03%
Ins Owners0.42%
Ins Owner Change23.26%
Market Cap700.25M
Analysts45
Price Target24.99 (44.53%)
Short Float %4.69%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend0.48
Dividend Growth(5Y)0.87%
DP100.64%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.74%
Min EPS beat(2)24.57%
Max EPS beat(2)38.92%
EPS beat(4)4
Avg EPS beat(4)22.22%
Min EPS beat(4)4.8%
Max EPS beat(4)38.92%
EPS beat(8)5
Avg EPS beat(8)5.75%
EPS beat(12)6
Avg EPS beat(12)-0.68%
EPS beat(16)8
Avg EPS beat(16)-0.86%
Revenue beat(2)1
Avg Revenue beat(2)2.13%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)4.46%
Revenue beat(4)3
Avg Revenue beat(4)1.82%
Min Revenue beat(4)-0.2%
Max Revenue beat(4)4.46%
Revenue beat(8)4
Avg Revenue beat(8)-0.37%
Revenue beat(12)7
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)0.78%
PT rev (1m)3.52%
PT rev (3m)18.07%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)23.98%
EPS NY rev (1m)0%
EPS NY rev (3m)18.02%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)10.13%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 8.09 | ||
| P/S | 0.63 | ||
| P/FCF | 45.69 | ||
| P/OCF | 12.61 | ||
| P/B | 2.84 | ||
| P/tB | 4.6 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)1.61
EY9.31%
EPS(NY)2.14
Fwd EY12.36%
FCF(TTM)0.38
FCFY2.19%
OCF(TTM)1.37
OCFY7.93%
SpS27.31
BVpS6.09
TBVpS3.76
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 7.83% | ||
| ROCE | 9.72% | ||
| ROIC | 7.68% | ||
| ROICexc | 8.2% | ||
| ROICexgc | 9.07% | ||
| OM | 9.25% | ||
| PM (TTM) | 1.75% | ||
| GM | 32% | ||
| FCFM | 1.39% |
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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.99 | ||
| Debt/FCF | 49.14 | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 103.16% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.31% | ||
| Profit Quality | 79.34% | ||
| Current Ratio | 3.2 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 2.27 |
F-Score5
WACC8.61%
ROIC/WACC0.89
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)41.23%
EPS 3Y-2.15%
EPS 5Y-4.78%
EPS Q2Q%63.64%
EPS Next Y65.64%
EPS Next 2Y34%
EPS Next 3Y24.35%
EPS Next 5YN/A
Revenue 1Y (TTM)12.64%
Revenue growth 3Y6.89%
Revenue growth 5Y4.21%
Sales Q2Q%23.77%
Revenue Next Year27.51%
Revenue Next 2Y18.49%
Revenue Next 3Y12.77%
Revenue Next 5Y2.87%
EBIT growth 1Y64.6%
EBIT growth 3Y-0.14%
EBIT growth 5Y-1.81%
EBIT Next Year156.11%
EBIT Next 3Y39.41%
EBIT Next 5Y14.26%
FCF growth 1Y125.38%
FCF growth 3Y34.65%
FCF growth 5Y21.82%
OCF growth 1Y1113.41%
OCF growth 3Y21.94%
OCF growth 5Y13.18%