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Reasons to Add PAHC Stock to Your Portfolio Right Now
ZACKS· 2025-06-18 14:26
Core Insights - Phibro Animal Health Corporation (PAHC) is focusing on advancing its Animal Health business, which is expected to drive growth in the upcoming quarters [1] - The company has shown strong performance with a 39.9% increase in shares over the past year, significantly outperforming the industry and S&P 500 [2] - Recovery in Mineral Nutrition and Performance Products is contributing to overall growth, although macroeconomic conditions remain a concern [1][9] Animal Health Business - Phibro's key animal health products, including Medicated Feed Additives (MFAs) and nutritional specialty products, are enhancing animal nutrition and are crucial for growth [3] - The Animal Health business reported a 42% sales growth year over year, with MFAs and other product sales increasing by 68% [4][8] - Nutritional specialty products saw an 8% increase in net sales, driven by improved domestic dairy demand [4] Global Market Presence - Phibro's operations outside the United States contributed approximately 40% to total revenues during the fiscal third quarter [6] - The company is targeting high-growth regions such as Brazil, China, India, and Southeast Asia, where livestock production growth rates are expected to exceed average levels [5] Mineral Nutrition and Performance Products - The Mineral Nutrition business grew 4% year over year, supported by increased sales volume and pricing [7] - Performance Products experienced a 28% year-over-year sales increase due to rising demand for personal care product ingredients [7][8] Macroeconomic Challenges - Phibro's operations are impacted by economic sanctions, supply chain disruptions, and inflationary pressures, particularly due to the ongoing conflict between Russia and Ukraine [9] - The cost of goods sold increased by 32.5% from the prior year, reflecting the adverse macroeconomic environment [9] Financial Estimates - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 1.5% to $2.04, with revenue estimates at $1.28 billion, indicating a 25.6% rise from the previous year [10]
Top 3 MedTech Stocks to Weather the Trump Tariff Turbulence
ZACKS· 2025-04-09 14:01
Industry Overview - The MedTech sector has emerged as a resilient investment option amid macroeconomic challenges, characterized by innovation and a rising demand for personalized healthcare solutions [6][8] - The global MedTech industry market is projected to grow to $694.70 billion by 2025, with an estimated year-over-year increase of approximately 4% [8] Market Dynamics - The medical device industry has historically been a reliable refuge during turbulent market periods, with investors currently prioritizing long-term stability over short-term gains [4] - Innovations in artificial intelligence, robotics, and minimally invasive techniques are expected to revolutionize healthcare services, increasing the demand for advanced medical equipment and diagnostic instruments [8] Company Highlights - **Fresenius Medical Care AG (FMS)**: A leading provider of products and services for dialysis patients, recently launched the NxStage Versi HD home dialysis machine, with over 14,000 U.S. patients using its system [10][11] - FMS has a Zacks Rank of 1 and a Value Score of A, with a P/E ratio of 11.36X, below the industry average of 23.48X, and is expected to see a 27.1% growth in earnings by 2025 [12] - **Phibro Animal Health (PAHC)**: A global diversified animal health company that recently acquired Zoetis Inc.'s product portfolio, enhancing its profitability and EBITDA margin [14][15] - PAHC holds a Zacks Rank of 1 and a Value Score of B, with a P/E of 9.88X, below the industry average of 15.56X, and is projected to achieve 63% growth in earnings by 2025 [16] - **Cencora, Inc. (COR)**: A major pharmaceutical services company that launched Accelerate Pharmacy Solutions and is expanding its leadership in specialty products through strategic acquisitions [17][18] - COR has a Zacks Rank of 2 and a Value Score of B, with a P/S ratio of 0.18X, significantly lower than the industry average of 1.29X, and is expected to see an 11.6% growth in earnings by 2025 [19]