Phibro Animal Health Corp

PAHC

Pharmaceutical Preparations

Mkt Cap

$730.7M

PE

55.52

Debt

$320.8M

Cash

$50.23M

EV

$1.001B

FCF

$40.35M

Market Cap

$730.7M

P/E Ratio

55.52

Debt

$320.8M

Cash

$50.23M

EV

$1.001B

FCF

$40.35M

Charts data: {"Earnings":[{"time":"2014-06-29","value":-3127000},{"time":"2015-06-29","value":60280000},{"time":"2016-06-29","value":82728000},{"time":"2017-06-29","value":64615000},{"time":"2018-06-29","value":64883000},{"time":"2019-06-29","value":54713000},{"time":"2020-06-29","value":33552000},{"time":"2021-06-29","value":54385000},{"time":"2022-06-29","value":49175000},{"time":"2023-06-29","value":32606000}],"Sales":[{"time":"2014-06-29","value":691914000},{"time":"2015-06-29","value":748591000},{"time":"2016-06-29","value":751526000},{"time":"2017-06-29","value":764281000},{"time":"2018-06-29","value":819982000},{"time":"2019-06-29","value":827995000},{"time":"2020-06-29","value":800354000},{"time":"2021-06-29","value":833350000},{"time":"2022-06-29","value":942261000},{"time":"2023-06-29","value":977889000}],"Net Margins":[{"time":"2014-06-29","value":-0.00451934778021546},{"time":"2015-06-29","value":0.08052461223819148},{"time":"2016-06-29","value":0.11008002384481708},{"time":"2017-06-29","value":0.0845435121375515},{"time":"2018-06-29","value":0.07912734669785434},{"time":"2019-06-29","value":0.06607890144264156},{"time":"2020-06-29","value":0.041921449758481874},{"time":"2021-06-29","value":0.06526069478610427},{"time":"2022-06-29","value":0.052188300269245994},{"time":"2023-06-29","value":0.03334325265955543}],"Assets":[{"time":"2014-06-29","value":472323000},{"time":"2015-06-29","value":493318000},{"time":"2016-06-29","value":610373000},{"time":"2017-06-29","value":623397000},{"time":"2018-06-29","value":671679000},{"time":"2019-06-29","value":726671000},{"time":"2020-06-29","value":784100000},{"time":"2021-06-29","value":841325000},{"time":"2022-06-29","value":931699000},{"time":"2023-06-29","value":971397000}],"Stockholders Equity":[{"time":"2014-06-29","value":15149000},{"time":"2015-06-29","value":29628000},{"time":"2016-06-29","value":90480000},{"time":"2017-06-29","value":151157000},{"time":"2018-06-29","value":184954000},{"time":"2019-06-29","value":216015000},{"time":"2020-06-29","value":188204000},{"time":"2021-06-29","value":238529000},{"time":"2022-06-29","value":262442000},{"time":"2023-06-29","value":282509000}],"ROE":[{"time":"2014-06-29","value":-0.2064162651000066},{"time":"2015-06-29","value":2.0345619009045497},{"time":"2016-06-29","value":0.9143236074270557},{"time":"2017-06-29","value":0.4274694522913262},{"time":"2018-06-29","value":0.3508061463931572},{"time":"2019-06-29","value":0.25328333680531445},{"time":"2020-06-29","value":0.17827463815859387},{"time":"2021-06-29","value":0.22800162663659346},{"time":"2022-06-29","value":0.1873747342269911},{"time":"2023-06-29","value":0.1154157920632617}],"ROA":[{"time":"2014-06-29","value":0.1350643521488473},{"time":"2015-06-29","value":0.1777109288531941},{"time":"2016-06-29","value":0.14047803556186136},{"time":"2017-06-29","value":0.15709732321458075},{"time":"2018-06-29","value":0.1472816628181021},{"time":"2019-06-29","value":0.11453050968044685},{"time":"2020-06-29","value":0.08824639714322152},{"time":"2021-06-29","value":0.08898820313196446},{"time":"2022-06-29","value":0.08477630651100838},{"time":"2023-06-29","value":0.07396255084172589}]}

Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal's health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, industrial, environmental, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock's diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle integrators, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.

Sector

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9/30/18
10-K
6/30/18
10-Q
3/31/18
10-Q
12/31/17

DCF

Discounted Cash Flow Valuation of Phibro Animal Health Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$40.35M	$36.15M	$32.39M	$29.03M	$26.01M	$23.31M	$20.88M	$18.71M	$16.77M	$15.02M	$13.46M	$134.6M
DCF		$31.44M	$24.49M	$19.09M	$14.87M	$11.59M	$9.029M	$7.035M	$5.481M	$4.271M	$3.328M	$33.28M
Value	$163.9M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -12%

Earnings Stability 60%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Net Margin	8.1%	11%	8.5%	7.9%	6.6%	4.2%	6.5%	5.2%	3.3%	1.3%
ROA	18%	14%	16%	15%	11%	8.8%	8.9%	8.5%	7.4%	6%
ROE	200%	91%	43%	35%	25%	18%	23%	19%	12%	4.9%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.63%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.71%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.96%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.3%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +21.89%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -3.79%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Debt FCF	5.96	331.42	3.31	4.98	14.11	9.39	16.20	-83.18	-9.30	7.95
Debt Equity	9.79	3.17	1.70	1.39	1.13	1.26	1.29	1.71	1.27	1.19
MIN
Graham Stability	-	-	100%	94%	77%	55%	100%	100%	71%	55%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 7.95.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -10.18.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.55.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	06-2016	06-2018	06-2020	06-2022	Trend
Revenue	3.8%	3.6%	6.9%	3.8%	0.24%
Net Income	-12%	-13%	-0.95%	-34%	-3.2%
Stockholders Equity	18%	8.8%	14%	7.6%	-18%
FCF	-	-	-	-	-750%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.59%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.24%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -12.86%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.25%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +8.84%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -17.56%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -745.04%.