📊 PAHC Key Takeaways
Is Phibro Animal Health Corp. (PAHC) a Good Investment?
Phibro demonstrates strong topline growth of 27.4% YoY and maintains solid operating margins of 13%, supported by excellent liquidity (3.17x current ratio) and manageable interest coverage (8.6x). However, net income growth stalled at 0% YoY despite revenue expansion, and critically low free cash flow generation of $4.6M (0.4% margin) creates a concerning disconnect between reported profitability and actual cash conversion, leaving limited financial flexibility against a 1.71x debt-to-equity ratio.
Top-line growth is strong and operating profitability is solid, supported by a 13.8% operating margin, 6x interest coverage, and healthy liquidity. However, cash conversion is weak with near-breakeven free cash flow and flat net income YoY despite revenue growth, raising questions about growth quality and sustainability. Deleveraging and improved cash generation would be key to a more constructive stance.
Phibro Animal Health Corp. Key Strengths (PAHC)
- Strong revenue growth of 27.4% YoY in a pharmaceutical sector
- Solid operating margins at 13.0% with reasonable gross margins of 33.7%
- Excellent liquidity position with 3.17x current ratio and 8.6x interest coverage ratio
- Robust revenue growth (+27.4% YoY)
- Solid operating margin and ROE (13.8% OM; 16.2% ROE)
- Strong liquidity (3.05x current ratio) with adequate interest coverage (6.0x)
PAHC Stock Risks: Phibro Animal Health Corp. Investment Risks
- Net income completely flat YoY despite 27% revenue growth indicates severe margin compression or operational headwinds
- Critically weak free cash flow of $4.6M (0.4% of revenue) signals poor cash conversion despite reported profitability
- High leverage (1.71x debt-to-equity) with only $54.9M cash against $620.5M long-term debt limits financial flexibility
- High leverage (1.88x D/E; $624M long-term debt)
- Weak cash conversion and minimal FCF (0.5% margin)
- Earnings quality concerns (flat net income YoY despite growth)
Key Metrics to Watch
- Free cash flow generation and FCF conversion rates in subsequent quarters
- Net margin trends and ability to expand net income in line with revenue growth
- Debt reduction progress and management of leverage ratios
- Free cash flow margin
- Interest coverage ratio
Phibro Animal Health Corp. (PAHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.17x current ratio provides a solid financial cushion.
PAHC Profit Margin, ROE & Profitability Analysis
PAHC vs Healthcare Sector: How Phibro Animal Health Corp. Compares
How Phibro Animal Health Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Phibro Animal Health Corp. Stock Overvalued? PAHC Valuation Analysis 2026
Based on fundamental analysis, Phibro Animal Health Corp. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Phibro Animal Health Corp. Balance Sheet: PAHC Debt, Cash & Liquidity
PAHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Phibro Animal Health Corp.'s revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.81 reflects profitable operations.
PAHC Revenue Growth, EPS Growth & YoY Performance
PAHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $347.8M | $20.9M | $0.51 |
| Q2 2026 | $309.3M | $3.2M | $0.08 |
| Q1 2026 | $260.4M | $7.0M | $0.17 |
| Q3 2025 | $263.2M | $1.7M | $0.04 |
| Q2 2025 | $249.9M | $1.3M | $0.03 |
| Q1 2025 | $231.3M | $7.0M | $0.17 |
| Q3 2024 | $245.7M | $1.7M | $0.04 |
| Q2 2024 | $244.6M | $1.3M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Phibro Animal Health Corp. Dividends, Buybacks & Capital Allocation
PAHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Phibro Animal Health Corp. (CIK: 0001069899)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PAHC
What is the AI rating for PAHC?
Phibro Animal Health Corp. (PAHC) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PAHC's key strengths?
Claude: Strong revenue growth of 27.4% YoY in a pharmaceutical sector. Solid operating margins at 13.0% with reasonable gross margins of 33.7%. ChatGPT: Robust revenue growth (+27.4% YoY). Solid operating margin and ROE (13.8% OM; 16.2% ROE).
What are the risks of investing in PAHC?
Claude: Net income completely flat YoY despite 27% revenue growth indicates severe margin compression or operational headwinds. Critically weak free cash flow of $4.6M (0.4% of revenue) signals poor cash conversion despite reported profitability. ChatGPT: High leverage (1.88x D/E; $624M long-term debt). Weak cash conversion and minimal FCF (0.5% margin).
What is PAHC's revenue and growth?
Phibro Animal Health Corp. reported revenue of $1.1B.
Does PAHC pay dividends?
Phibro Animal Health Corp. pays dividends, with $14.6M distributed to shareholders in the trailing twelve months.
Where can I find PAHC SEC filings?
Official SEC filings for Phibro Animal Health Corp. (CIK: 0001069899) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PAHC's EPS?
Phibro Animal Health Corp. has a diluted EPS of $1.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PAHC's fundamental grade?
Based on our AI fundamental analysis in May 2026, Phibro Animal Health Corp. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PAHC stock overvalued or undervalued?
Valuation metrics for PAHC: ROE of 21.6% (sector avg: 15%), net margin of 7.0% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is PAHC's AI grade for 2026?
Our dual AI analysis gives Phibro Animal Health Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PAHC's free cash flow?
Phibro Animal Health Corp.'s operating cash flow is $44.9M, with capital expenditures of $40.2M. FCF margin is 0.4%.
How does PAHC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 7.0% (avg: 12%), ROE 21.6% (avg: 15%), current ratio 3.17 (avg: 2).
Is Phibro Animal Health Corp. carrying too much debt?
PAHC has a debt-to-equity ratio of 1.71x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 3.17 suggests adequate short-term liquidity.