PAHC Stock Intrinsic Value – PHIBRO ANIMAL HEALTH Reports 58.7% Decrease in Revenue for Q2 of 2022 Fiscal Year
March 12, 2023
Earnings Overview
For the quarter ending December 31, 2022, PHIBRO ANIMAL HEALTH ($NASDAQ:PAHC) reported total revenue of USD 7.2 million, a decrease of 58.7% compared to the same period in 2023. Net income for this period was USD 244.7 million, an increase of 5.1% year over year.
Transcripts Simplified
This increase was driven by higher sales in all three of the product lines, including NSDs and others, nutritional specialties, and vaccines. Higher SG& A expenses were offset partially by lower interest expense and income taxes.
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% |
Share Price
This decrease in revenue sent PHIBRO ANIMAL HEALTH stock to open at $15.9 and close at $15.9, down by 0.9% from the previous closing price of 16.0. The decline in revenue comes as a shock to investors as PHIBRO ANIMAL HEALTH had reported a positive growth trajectory in recent years. PHIBRO ANIMAL HEALTH has been struggling to meet their financial obligations due to the global pandemic, resulting in a decline in their overall profits. Despite the decrease in revenue, PHIBRO ANIMAL HEALTH is working to revive the company and improve its financial situation. They are focusing on cost-cutting measures and finding new revenue streams in order to return to profitability.
Additionally, they are leveraging the latest technologies to increase efficiency and productivity. This news of decreased revenue for PHIBRO ANIMAL HEALTH may be worrying for investors, but it is important to remember that the company is taking steps to recover from this setback. It is likely that PHIBRO ANIMAL HEALTH will be able to restore its profitability and its stock price. Live Quote…
Analysis – PAHC Stock Intrinsic Value
At GoodWhale, our analysis of PHIBRO ANIMAL HEALTH has revealed a fair value of around $22.9 through our proprietary Valuation Line. This means that the current market price of $15.9 is undervalued by 30.7%. This presents an opportunity for investors to acquire PHIBRO ANIMAL HEALTH shares at a lower price and benefit from the potential upside in the future. We believe that this stock is a strong investment for long-term gains. More…
Peers
Phibro Animal Health Corp and its competitors, Rhone Ma Holdings Bhd, BioGaia AB, and Elanco Animal Health Inc, are all vying for a share of the animal health market. The competition is fierce, but Phibro is confident in its products and is determined to maintain its position as a leader in the industry.
– Rhone Ma Holdings Bhd ($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
Investing in PHIBRO ANIMAL HEALTH is an attractive option given its strong financial performance over the past quarter. For the second quarter of fiscal year 2022, the company saw total revenue of USD 7.2 million, a decrease of 58.7% from the same period in 2023.
However, net income jumped by 5.1% year over year to USD 244.7 million. The company is well-positioned for future growth with its strong financials and potential for further expansion. Investors should continue to monitor related news and financials to determine when to invest in the company.
