Phibro Animal Health Stock To $35?

Phibro Animal Health (PAHC) stock has jumped 22% during the past day, and is currently trading at $50.00. Our multi-factor assessment suggests that it may be time to sell PAHC stock. We have, overall, a pessimistic view of the stock, and a price of $35 may not be out of reach. We believe there are only a couple of things to fear in PAHC stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive.

Below is our assessment:

Don’t get too attached to PAHC stock, even if you love it. Stocks crash. High Quality Portfolio lets you navigate that risk.

Let’s get into details of each of the assessed factors but before that, for quick background: With $2.0 Bil in market cap, Phibro Animal Health provides animal health, mineral nutrition, and performance products for livestock, including biological and chemical antibacterials to treat and prevent bacterial diseases.

[1] Valuation Looks High

This table highlights how PAHC is valued vs broader market. For more details see: PAHC Valuation Ratios

[2] Growth Is Very Strong

• Phibro Animal Health has seen its top line grow at an average rate of 15.3% over the last 3 years
• Its revenues have grown 32% from $1.1 Bil to $1.5 Bil in the last 12 months
• Also, its quarterly revenues grew 20.9% to $374 Mil in the most recent quarter from $309 Mil a year ago.

This table highlights how PAHC is growing vs broader market. For more details see: PAHC Revenue Comparison

[3] Profitability Appears Weak

• PAHC last 12 month operating income was $169 Mil representing operating margin of 11.5%
• With cash flow margin of 6.4%, it generated nearly $93 Mil in operating cash flow over this period
• For the same period, PAHC generated nearly $92 Mil in net income, suggesting net margin of about 6.3%

This table highlights how PAHC profitability vs broader market. For more details see: PAHC Operating Income Comparison

[4] Financial Stability Looks Strong

• PAHC Debt was $773 Mil at the end of the most recent quarter, while its current Market Cap is $2.0 Bil. This implies Debt-to-Equity Ratio of 38.4%
• PAHC Cash (including cash equivalents) makes up $75 Mil of $1.4 Bil in total Assets. This yields a Cash-to-Assets Ratio of 5.3%

[5] Downturn Resilience Is Very Weak

PAHC has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• PAHC stock fell 67.9% from a high of $30.08 on 15 June 2021 to $9.66 on 10 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 8 July 2025
• Since then, the stock increased to a high of $50.00 on 5 February 2026 $50.00

 
2020 Covid Pandemic

• PAHC stock fell 41.9% from a high of $28.29 on 29 April 2020 to $16.44 on 30 October 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 20 May 2021

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read PAHC Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.