Zoetis MFA integration complete + Chicago Heights closure drives FY28+ margin expansion ($15–20M annual EBITDA benefit). Trading at 8.3x EV/EBITDA fwd vs peer median 11x. Base FV $47 (+32%). Leverage 2.9x and virginiamycin Brazil headwind cap upside.
PAHC trades at 8.3x EV/EBITDA fwd — a 25–30% discount to nearest MFA-heavy comps (ELAN 11.2x, Dechra 15.5x pre-buyout). Discount justified by higher leverage (2.9x vs ELAN 3.5x, Dechra was 4x pre-deal), commodity mineral nutrition mix, and dual-class governance. Implied FV multiple ≈ 10.4x FY27E $263M = $2,735M EV → sum-of-parts crosschecks within ±5%. DCF cross-check (10.5% WACC, 2% TG, 3% revenue CAGR): $45–50/sh, aligned. Sensitivity: −1x multiple removes ~$6.50/sh; +1x adds ~$6.50/sh. Implied 10.4x within ±20% nominal ✓.
| Component | Assumption | USD/share |
|---|---|---|
| Animal Health BU (MFA + Vaccines) | $1,120M FY27E rev × 22% EBITDA margin = $246M × 10x EV/EBITDA (Dechra-adj) | +$60.65 |
| Mineral Nutrition BU | $310M FY27E rev × 8% EBITDA margin = $25M × 7x EV/EBITDA (commodity haircut) | +$4.31 |
| Performance Products BU | $150M FY27E rev × 12% EBITDA margin = $18M × 6x EV/EBITDA (small, less strategic) | +$2.66 |
| Chicago Heights option value | Prob 90% × $17.5M annual EBITDA × 8x (from FY28) discounted 1yr @10% = $115M | +$2.83 |
| Total EV (sum of segments) | $2,867M EV / 40.56M shares | +$70.68 |
| Less: Net debt | $727M ($789M debt − $61M cash) / 40.56M shares | −$17.93 |
| Less: Chicago Heights transition costs | $25M inventory build + $10M closure + $10M capex = $45M spent FY27 | −$1.11 |
| Less: Virginiamycin Brazil litigation reserve | Prob-weighted revenue haircut @ $50M NPV impact / 40.56M sh | −$1.23 |
| Less: Class A vs Class B voting discount | −7% for dual-class structure (BFI holds 19.5M Class B, 10 votes/sh) | −$3.29 |
| FV base case | Sum of components above | $47.12 |
| Item | FY2024 | FY2025 | FY2026 | FY2027E |
|---|---|---|---|---|
| Revenue | 1,020 | 1,297 | 1,518 | 1,575 |
| Gross margin % | 29.1% | 30.5% | 32.0% | 32.5% |
| Adj EBITDA | 115 | 170 | 252 | 263 |
| EBITDA margin % | 11.3% | 13.1% | 16.6% | 16.7% |
| Operating income | 60 | 85 | 140 | 155 |
| Adj net income | 35 | 48 | 100 | 142 |
| Adj EPS ($) | 0.87 | 1.19 | 2.47 | 3.50 |
| Total debt | 870 | 820 | 789 | 765 |
| Item | Q4'25 | Q1'26 | Q2'26 | Q3'26 | Q4'26 |
|---|---|---|---|---|---|
| Revenue ($M) | 334.2 | 361.7 | 374.1 | 383.5 | 398.7 |
| Gross margin % | 30.1% | 31.2% | 31.8% | 32.5% | 32.8% |
| Adj EBITDA ($M) | 50.5 | 60.2 | 65.4 | 60.8 | 65.6 |
| Adj EPS ($) | 0.42 | 0.55 | 0.66 | 0.76 | 0.72 |
| End-of-period cash ($M) | 72.4 | 66.9 | 63.8 | 58.4 | 61.4 |
Business model — Phibro Animal Health
Phibro is a diversified animal health platform serving livestock (poultry, swine, cattle, aquaculture) with three primary businesses: (1) Animal Health — medicated feed additives (MFA), vaccines, water-soluble nutritional specialties (~74% of revenue post-Zoetis MFA acquisition); (2) Mineral Nutrition — trace minerals for animal feed formulation; (3) Performance Products — industrial specialty chemicals (copper-based). Sells globally in 80+ countries through direct sales + distributors to feed mills, integrators, and vet channels. October 2024 Zoetis MFA acquisition ($350M for $400M revenue) transformed the animal health segment scale and product breadth. Family-controlled: Bendheim family via BFI Co. LLC holds Class B super-voting shares.
Animal Health (MFA + Vaccines) ~$1,120M FY27E (71% rev) 🟢 ramping Post-Zoetis MFA the largest MFA player globally alongside Elanco. 37+ product lines. Growth from vaccines (poultry) and international expansion. EBITDA margin target 22%+. Mineral Nutrition ~$310M FY27E (20% rev) 🔵 stable Trace mineral premixes for feed formulation. Commodity-adjacent business with pass-through pricing. Low-single-digit growth, GM ~15%, EBITDA margin ~8%. Performance Products ~$150M FY27E (9% rev) 🔵 stable Copper-based industrial specialty chemicals. Non-core to animal health thesis but stable cash generator. Occasional volatility from copper prices. EBITDA margin ~12%.
Legal, regulatory and risk analysis
SWOT analysis
Summary by assessment area
Sources: PAHC 10-K FY2026 (Aug 26, 2026), PAHC Q4 FY2026 earnings press release (Aug 26, 2026), Yahoo Finance Q4 earnings call summary, Seeking Alpha "Phibro: Zoetis Integrated And Better Cash Flow Ahead", Zoetis MFA acquisition press release (April 2024), StockAnalysis.com (statistics), Simply Wall St (peer comps + FV estimate), Nasdaq (short interest), StockTitan (CEO insider Form 4 filings), Tikr blog (analyst consensus). Market data — last verified close 2026-09-12 (~$35.62, T-1 to T-2 trading days from report date). CNBC/Yahoo also showed $38.37 Sep 2, 2026 (T-8) — stock volatile in this range post FY27 guide. This document is for informational purposes only and does not constitute financial or investment advice. ⚠️ Not investment advice.