PAHC Stock Up 76.4% in a Year: What's Driving the Rally?

Core Insights - Phibro Animal Health (PAHC) shares have increased by 76.4% over the past year, significantly outperforming the industry growth of 4.9% and the S&P 500's 16% gain [1][8] - The company is currently ranked 2 (Buy) by Zacks, indicating strong fundamentals and growth potential [1] Company Overview - Phibro, based in New Jersey, offers a wide range of products for food animals, including poultry, swine, beef, dairy cattle, and aquaculture, as well as ingredients for personal care and industrial sectors [2] - The company is focusing on expanding its product offerings in the companion animal sector [2] Growth Drivers - The surge in PAHC's share price is attributed to a strong sales recovery in its Mineral Nutrition and Performance Products segments, with Mineral Nutrition growing by 4% year over year and Performance Products increasing by 28% year over year [3] - The recent acquisition of medicated feed additive products and certain water-soluble products from Zoetis Inc. has expanded Phibro's Animal Health product portfolio [3] International Market Contribution - Approximately 40% of Phibro's total revenues come from international markets, including high-growth regions such as Brazil, China, India, and Southeast Asia [4] Financial Health - Phibro has a solid financial position, with a low short-term payable debt of $16 million compared to total cash and short-term investments of $70.4 million [5] - The company reported an operating profit of $33.4 million for the fiscal third quarter, reflecting a 67.8% year-over-year increase and an expansion of the operating margin by 204 basis points [5] Earnings Estimates - Phibro's earnings per share (EPS) are projected to increase by 71.4% to $2.04 for fiscal 2025 and by 12.7% to $2.30 for fiscal 2026 [9] - Revenues are expected to grow by 25.7% to $1.28 billion in fiscal 2025 and reach $1.41 billion in fiscal 2026, indicating a 10.1% increase [9]