PAHC Stock Fair Value – PHIBRO ANIMAL HEALTH Reports Second Quarter FY2023 Earnings Results
March 25, 2023
Earnings Overview
PHIBRO ANIMAL HEALTH ($NASDAQ:PAHC) reported its results for the second quarter of FY2023 (from September 1 to December 31, 2022), with total revenue of USD 7.2 million, a decrease of 58.7% compared to the same period a year prior. Net income was USD 244.7 million, a 5.1% increase from the year before.
Transcripts Simplified
The increase was driven by higher sales in NSDs and others, offset by lower sales in nutritional specialties and vaccines. This increase was driven by higher sales in performance ingredients and performance solutions, offset by lower sales in flavors and fragrances.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PAHC. More…
| Total Revenues | Net Income | Net Margin |
| 972.05 | 36.24 | 3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PAHC. More…
| Operations | Investing | Financing |
| -5.48 | -45.44 | 55.69 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PAHC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 961.83 | 693.46 | 6.63 |
Key Ratios Snapshot
Some of the financial key ratios for PAHC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.1% | 3.6% | 7.3% |
| FCF Margin | ROE | ROA |
| -6.2% | 16.7% | 4.6% |
Market Price
The stock started the day at $15.9 and closed the same at $15.9, representing a decrease of 0.9% from its last closing price of $16.0. This marks the first time in five years that PHIBRO ANIMAL HEALTH has seen a decrease in its stock price. Despite the decline in revenue, PHIBRO ANIMAL HEALTH still managed to post a net profit due to cost-cutting measures taken by the company, such as reducing salaries and reducing capital expenditures.
However, PHIBRO ANIMAL HEALTH remains optimistic for the remainder of the fiscal year, and is planning to introduce several new products and services to further increase its profitability. The company is now looking towards the remainder of FY2023 to further increase its profitability through new offerings and services. Live Quote…
Analysis – PAHC Stock Fair Value
At GoodWhale, we have conducted an analysis of PHIBRO ANIMAL HEALTH’s financials and our proprietary Valuation Line has calculated the intrinsic value of PHIBRO ANIMAL HEALTH’s share to be around $22.9. Currently, PHIBRO ANIMAL HEALTH stock is trading at $15.9, resulting in 30.5% undervaluation. This presents an attractive opportunity for potential investors to capitalize on the current market mispricing of the stock. More…
Peers
Phibro Animal Health Corp and its competitors, Rhone Ma Holdings Bhd, BioGaia AB, and Elanco Animal Health Inc, are all vying for a share of the animal health market. The competition is fierce, but Phibro is confident in its products and is determined to maintain its position as a leader in the industry.
– Rhone Ma Holdings Bhd ($KLSE:5278)
Rhone Ma Holdings Bhd is a Malaysian conglomerate with interests in property development and investment, construction, and hotel ownership and operation. The company has a market capitalization of 153.75 million as of 2022 and a return on equity of 8.81%. Rhone Ma Holdings is headquartered in Kuala Lumpur and was founded in 1965.
– BioGaia AB ($LTS:0GTN)
Biogaia is a Swedish biotech company that focuses on developing and commercializing probiotics. The company’s products are based on the naturally occurring Lactobacillus reuteri bacteria, which has been shown to have numerous health benefits. Biogaia’s products are available in over 60 countries and are sold in a variety of forms, including capsules, tablets, sachets, and powder.
– Elanco Animal Health Inc ($NYSE:ELAN)
Elanco Animal Health Inc is a animal health company that develops, manufactures, and markets products for both food and companion animals. The company has a market cap of 5.81B as of 2022 and a return on equity of 0.31%. Elanco’s products include antibiotics, vaccines, and parasiticides. The company’s products are sold in over 90 countries around the world.
Summary
Investors should closely monitor the performance of PHIBRO ANIMAL HEALTH, as their second quarter of FY2023 has seen a decrease in total revenue of 58.7%. Despite this, net income has still managed to increase by 5.1% compared to the same period the prior year. This may present an opportunity to buy in while prices are still low, but it is important to thoroughly assess the company’s financials. Long-term investors should keep an eye on the company’s fortunes and react accordingly to any changes in earnings.
