We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Phibro Animal Health Stock a Smart Addition to Your Portfolio Now?
Read MoreHide Full Article
Key Takeaways
PAHC's Animal Health business growth is driven by strong MFA revenues, vaccines and global protein demand.
Phibro is seeing rapid sales growth in emerging markets, with triple-digit gains reported in Asia Pacific.
Phibro's vaccine sales rose 25% year over year, supported by poultry demand in Latin America and new capacity.
Phibro Animal Health Corporation (PAHC - Free Report) is well-positioned to grow in the coming quarters due to the ongoing momentum of its Animal Health business. The company’s operations in nearly 90 countries enable it to capture global growth opportunities. In addition, vaccine sales are benefiting from the continued growth of poultry products in Latin America and stronger international demand. However, Phibro’s operations remain exposed to the macroeconomic impacts as well as competitive pressures.
In the past year, this Zacks Rank #1 (Strong Buy) stock has surged 93.7% compared with the industry’s 2.3% rise and the S&P 500 composite’s 18.2% growth.
The renowned animal health and mineral nutrition company has a market capitalization of $1.63 billion. PAHC has an earnings yield of 6.9% compared with the industry’s yield of 0.2%. In the last reported quarter, Phibro delivered an earnings surprise of 23.7%.
Let’s delve deeper.
PAHC: Factors at Play
Animal Health Business Growth Continues: Phibro’s leading medicated feed additives (MFA) product franchise, Stafac/V-Max/Eskalin, is approved in more than 30 countries, while nutritional offerings, such as OmniGen-AF and Animate, continue to gain traction in the global dairy industry. The MFA portfolio was further bolstered by the integration of Zoetis’ MFA business, which added more than 37 established product lines marketed across approximately 80 countries, along with six manufacturing sites in the United States, Italy and China.
Image Source: Zacks Investment Research
In the first quarter of fiscal 2026, MFA revenues grew 81%, supported by strong gains in nutritional specialties and vaccines. Legacy MFA and other products also recorded a 6% increase, highlighting the strong demand across the diversified animal health portfolio and the enduring strength of global protein production.In addition, Phibro remains committed to expanding its companion animal business and pipeline, areas identified as near and medium-term growth drivers where the company is actively investing.
Potential in Emerging Markets: Phibro’s existing operations and established sales, marketing and distribution network in approximately 90 countries provide it ample scope to take advantage of global growth opportunities. Outside the United States, Phibro’s global footprint extends to key high-growth regions, including Brazil and other countries in South America, China, India and Southeast Asia, Mexico, Turkey, Australia, Canada, Poland and other Eastern European countries, and South Africa and other countries in Africa. In the first quarter of fiscal 2026, net sales in Europe, the Middle East and Africa increased 44.4%, while Asia Pacific sales jumped 101.1%.
Prospering Vaccine Business: Phibro is focusing on new developments, along with incremental registrations and growing volumes of existing vaccine technologies. The company also makes significant investments to expand vaccine manufacturing capacity at several locations. Recently, Phibro began operations at a new vaccine production facility in Guarulhos, Brazil, which manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture.
The company also launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas. In the first quarter of fiscal 2026, net sales of vaccines increased 25% year over year, primarily driven by the continued growth of poultry products in Latin America and higher international demand. Management highlighted vaccines as a key growth driver heading into fiscal 2026, supported by expanding capacity and sustained global demand.
Downsides for PAHC Stock
Macroeconomic Concerns: Phibro’s business continues to be affected by economic sanctions, bans and broader military conflicts resulting from the ongoing armed conflict between Russia and Ukraine. Other impacts include supply-chain and logistics disruptions, macroeconomic impacts from the exclusion of Russian financial institutions from the global banking system, volatility in foreign exchange rates and interest rates, inflationary pressures on raw materials and energy, as well as heightened cybersecurity threats. These macroeconomic factors could reduce Phibro’s profitability and negatively impact its overall financial performance.
Competitive Landscape: Phibro is engaged in highly competitive industries. It faces competition from a substantial and continually evolving number of global and regional competitors. Phibro’s competitive position is based principally on its product registrations, customer service and support, breadth of product line, product quality, manufacturing technology, facility location and product prices. Moreover, consolidation continues to rise in the animal health market, which might work in favor of Phibro’s competitors.
PAHC Stock Estimate Trend
The Zacks Consensus Estimate for Phibro’s fiscal 2026 earnings per share (EPS) has moved up 1.8% to $2.76 in the past 30 days.
The Zacks Consensus Estimate for the company’s fiscal 2026 revenues is pegged at $1.47 billion. This suggests a 13.1% rise from the year-ago reported number.
BrightSpring Health Serviceshas an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 93.9% against the industry’s 0.1% drop in the past year.
Illumina, sporting a Zacks Rank #1, has an earnings yield of 3.7% compared to the industry’s -17.9% yield. Shares of the company have dropped 10.8% in the past year against the industry’s 9.9% growth. ILMN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.7%.
Insulet, carrying a Zacks Rank #2 (Buy), has an earnings yield of 3.9% against the industry’s -0.9% yield. Shares of the company have fallen 7.8% compared with the industry’s 2.6% drop. PODD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.8%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Phibro Animal Health Stock a Smart Addition to Your Portfolio Now?
Key Takeaways
Phibro Animal Health Corporation (PAHC - Free Report) is well-positioned to grow in the coming quarters due to the ongoing momentum of its Animal Health business. The company’s operations in nearly 90 countries enable it to capture global growth opportunities. In addition, vaccine sales are benefiting from the continued growth of poultry products in Latin America and stronger international demand. However, Phibro’s operations remain exposed to the macroeconomic impacts as well as competitive pressures.
In the past year, this Zacks Rank #1 (Strong Buy) stock has surged 93.7% compared with the industry’s 2.3% rise and the S&P 500 composite’s 18.2% growth.
The renowned animal health and mineral nutrition company has a market capitalization of $1.63 billion. PAHC has an earnings yield of 6.9% compared with the industry’s yield of 0.2%. In the last reported quarter, Phibro delivered an earnings surprise of 23.7%.
Let’s delve deeper.
PAHC: Factors at Play
Animal Health Business Growth Continues: Phibro’s leading medicated feed additives (MFA) product franchise, Stafac/V-Max/Eskalin, is approved in more than 30 countries, while nutritional offerings, such as OmniGen-AF and Animate, continue to gain traction in the global dairy industry. The MFA portfolio was further bolstered by the integration of Zoetis’ MFA business, which added more than 37 established product lines marketed across approximately 80 countries, along with six manufacturing sites in the United States, Italy and China.
Image Source: Zacks Investment Research
In the first quarter of fiscal 2026, MFA revenues grew 81%, supported by strong gains in nutritional specialties and vaccines. Legacy MFA and other products also recorded a 6% increase, highlighting the strong demand across the diversified animal health portfolio and the enduring strength of global protein production.In addition, Phibro remains committed to expanding its companion animal business and pipeline, areas identified as near and medium-term growth drivers where the company is actively investing.
Potential in Emerging Markets: Phibro’s existing operations and established sales, marketing and distribution network in approximately 90 countries provide it ample scope to take advantage of global growth opportunities. Outside the United States, Phibro’s global footprint extends to key high-growth regions, including Brazil and other countries in South America, China, India and Southeast Asia, Mexico, Turkey, Australia, Canada, Poland and other Eastern European countries, and South Africa and other countries in Africa. In the first quarter of fiscal 2026, net sales in Europe, the Middle East and Africa increased 44.4%, while Asia Pacific sales jumped 101.1%.
Prospering Vaccine Business: Phibro is focusing on new developments, along with incremental registrations and growing volumes of existing vaccine technologies. The company also makes significant investments to expand vaccine manufacturing capacity at several locations. Recently, Phibro began operations at a new vaccine production facility in Guarulhos, Brazil, which manufactures and markets autogenous vaccines against animal diseases for swine, poultry and aquaculture.
The company also launched new commercial vaccines and looks forward to bringing additional vaccines to the Americas. In the first quarter of fiscal 2026, net sales of vaccines increased 25% year over year, primarily driven by the continued growth of poultry products in Latin America and higher international demand. Management highlighted vaccines as a key growth driver heading into fiscal 2026, supported by expanding capacity and sustained global demand.
Downsides for PAHC Stock
Macroeconomic Concerns: Phibro’s business continues to be affected by economic sanctions, bans and broader military conflicts resulting from the ongoing armed conflict between Russia and Ukraine. Other impacts include supply-chain and logistics disruptions, macroeconomic impacts from the exclusion of Russian financial institutions from the global banking system, volatility in foreign exchange rates and interest rates, inflationary pressures on raw materials and energy, as well as heightened cybersecurity threats. These macroeconomic factors could reduce Phibro’s profitability and negatively impact its overall financial performance.
Competitive Landscape: Phibro is engaged in highly competitive industries. It faces competition from a substantial and continually evolving number of global and regional competitors. Phibro’s competitive position is based principally on its product registrations, customer service and support, breadth of product line, product quality, manufacturing technology, facility location and product prices. Moreover, consolidation continues to rise in the animal health market, which might work in favor of Phibro’s competitors.
PAHC Stock Estimate Trend
The Zacks Consensus Estimate for Phibro’s fiscal 2026 earnings per share (EPS) has moved up 1.8% to $2.76 in the past 30 days.
The Zacks Consensus Estimate for the company’s fiscal 2026 revenues is pegged at $1.47 billion. This suggests a 13.1% rise from the year-ago reported number.
Other Top Picks
Some other top-ranked stocks in the broader medical space are BrightSpring Health Services (BTSG - Free Report) , lllumina (ILMN - Free Report) and Insulet (PODD - Free Report) .
BrightSpring Health Serviceshas an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 93.9% against the industry’s 0.1% drop in the past year.
BTSG sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Illumina, sporting a Zacks Rank #1, has an earnings yield of 3.7% compared to the industry’s -17.9% yield. Shares of the company have dropped 10.8% in the past year against the industry’s 9.9% growth. ILMN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.7%.
Insulet, carrying a Zacks Rank #2 (Buy), has an earnings yield of 3.9% against the industry’s -0.9% yield. Shares of the company have fallen 7.8% compared with the industry’s 2.6% drop. PODD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.8%.