Phibro Animal Health beat earnings estimates in all 4 of the last 4 quarters with average surprise of 16.7% and a return on equity of 30%, but carries negative free cash flow at 19% of net income and a debt-to-equity ratio of 2.2 that raises value-trap warning flags alongside the attractive forward price-to-earnings of 9.7x.
Thesis pillars
- Perfect Earnings Beat Streak→Stable
- Strong Return On Equity→Stable
- Negative Free Cash Flow Red Flag→Stable
- +1 more pillar — see the Why tab for full reasoning
Phibro Animal Health Corporatio (PAHC) Stock Analysis
Recovery setup · Inst Constrain edge
Healthcare · Drug Manufacturers - Specialty & Generic
Sell if holding. Multiple concerning factors at $33.26: Leverage penalty (D/E 2.2): -1.5; Below 200-day MA.
Phibro Animal Health develops and markets roughly 800 animal health and mineral nutrition product lines in about 90 countries, with Animal Health representing 74% of FY2025 net sales of $1.296 billion. Phibro sells to approximately 4,500 customers through feed manufacturers,... Read more
Sell if holding. Multiple concerning factors at $33.26: Leverage penalty (D/E 2.2): -1.5; Below 200-day MA. Chart setup: Death cross but MACD improving, RSI 62. Score 5.7/10, moderate confidence.
Passes 6/9 gates (positive momentum, favorable risk/reward ratio, news events none recent, earnings proximity 54d clear, semi cycle peak clear, materials cycle peak clear). Fails on clean insider activity. Suitability: speculative.
About Phibro Animal Health Corporatio
About Phibro Animal Health Corporatio
Phibro Animal Health generated $1.296 billion in net sales for fiscal year 2025, a 27% increase following the October 2024 acquisition of Zoetis's medicated feed additive portfolio for $297.5 million, which added $208.2 million in revenue and six manufacturing sites across the U.S., Italy, and China. Animal Health represented 74% of total net sales, with MFAs and other antibacterials and anticoccidials comprising 67% of that segment. The United States contributed 57% of company-wide revenue.
Phibro earns revenue through three segments: Animal Health (antibacterials, anticoccidials, nutritional specialties, and vaccines), Mineral Nutrition (trace mineral formulations focused on North American livestock), and Performance Products (specialty ingredients for personal care and industrial chemical industries). The company sells directly to integrated poultry, swine, and cattle producers or through animal feed manufacturers, wholesalers, distributors, and veterinarians. Poultry represented 36% of total FY2025 net sales, followed by cattle at 16% and dairy at 14%. Pricing in Mineral Nutrition tracks underlying commodity metals including zinc, manganese, and copper. Phibro is the sole worldwide manufacturer and marketer of virginiamycin, marketed as Stafac for poultry, swine, and cattle, with trade-secret know-how protecting against generic competition.
Show full overview
The FDA's potential withdrawal of approval for Mecadox (carbadox)—marketed primarily in the United States for swine feed to control salmonellosis and dysentery—represents a named binary regulatory risk: an adverse FDA ruling could eliminate that product line's revenue. Growing restrictions on antibacterials in food-producing animals, including implementation of FDA Guidance 273 and similar global initiatives, may impact the broader MFA portfolio, which generates a material portion of Phibro's sales and gross profits. The company also discloses dependence on Israeli and Brazilian operations as a specific risk, adding geopolitical exposure to its revenue base.
See also: Healthcare · Drug Manufacturers - Specialty & Generic
From Phibro Animal Health Corporatio's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-06Recent Developments — Phibro Animal Health Corporatio
Latest news
- NEWS Phibro Animal Health Corp (PAHC) Shares Fall 3.3% -- GF Value Sa - GuruFocus — GuruFocus negative
- NEWS Phibro Animal Health’s (NASDAQ:PAHC) Q1 CY2026: Beats On Revenue - StockStory — StockStory positive
- NEWS Phibro Animal Health’s (NASDAQ:PAHC) Q1 CY2026: Beats On Revenue - FinancialContent — FinancialContent positive
- NEWS Phibro Animal Health's (PAHC) CEO Sold 21,120 Shares for $1.2 Million - The Motley Fool — The Motley Fool neutral
- NEWS Zacks Industry Outlook Highlights Phibro Animal Health, BioLife Solutions, Omeros and Brainsway - TradingView — TradingView neutral
Generated 2026-07-06T06:00:35Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMProductantibacterials and other related products10-K Item 1A: 'a material portion of our sales and gross profits are generated by antibacterials and other related products'
- MEDIUMGeographicIsraeli and Brazilian operations10-K Item 1A: 'our dependence on our Israeli and Brazilian operations'
Material Events(8-K, last 90d)
- 2026-04-14Item 5.02LOWDirector Joyce J. Lee, a Class II member of the Board, resigned effective April 15, 2026. Resignation was not the result of any disagreement with company operations, policies, or practices. No successor named.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Multiple concerning factors at $33.26: Leverage penalty (D/E 2.2): -1.5; Below 200-day MA. Chart setup: Death cross but MACD improving, RSI 62. Prior stop was $30.93. Score 5.7/10, moderate confidence.
Take-profit target: $39.67 (+19.3% upside). Prior stop was $30.93. Stop-loss: $30.93.
Leverage penalty (D/E 2.2): -1.5; Below 200-day MA; Value-trap signals (3/5): High leverage (D/E 2.2), Material insider selling (26 sells, 0.31% of cap), Negative free cash flow.
Phibro Animal Health Corporatio trades at a P/E of 14.3 (forward 9.9). TrendMatrix value score: 8.5/10. Verdict: Sell.
10 analysts cover PAHC with a consensus score of 2.5/5. Average price target: $46.
What does Phibro Animal Health Corporatio do?Phibro Animal Health develops and markets roughly 800 animal health and mineral nutrition product lines in about 90...
Phibro Animal Health develops and markets roughly 800 animal health and mineral nutrition product lines in about 90 countries, with Animal Health representing 74% of FY2025 net sales of $1.296 billion. Phibro sells to approximately 4,500 customers through feed manufacturers, distributors, wholesalers, and veterinarians, serving poultry, swine, cattle, and companion animal markets.