Phibro Animal Health Corporation (PAHC) Hits Fresh High: Is There Still Room to Run?
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2025, Phibro reported EPS of $0.63 versus consensus estimate of $0.52.
For the current fiscal year, Phibro is expected to post earnings of $2.3 per share on $1.28 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.54 per share on $1.41 in revenues. This represents a year-over-year change of 12.99% and 10.14%, respectively.
Valuation Metrics
Though Phibro has recently hit a 52-week high, what is next for Phibro? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Phibro has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 13.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.5X. On a trailing cash flow basis, the stock currently trades at 15.1X versus its peer group's average of 11.2X. Additionally, the stock has a PEG ratio of 0.53. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Phibro an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Phibro currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Phibro meets the list of requirements. Thus, it seems as though Phibro shares could still be poised for more gains ahead.
How Does PAHC Stack Up to the Competition?
Shares of PAHC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Brainsway Ltd. Sponsored ADR (BWAY). BWAY has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Brainsway Ltd. Sponsored ADR beat our consensus estimate by 42.86%, and for the current fiscal year, BWAY is expected to post earnings of $0.34 per share on revenue of $50.88 million.
Shares of Brainsway Ltd. Sponsored ADR have gained 19.6% over the past month, and currently trade at a forward P/E of 42.56X and a P/CF of 58.03X.
The Medical - Products industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PAHC and BWAY, even beyond their own solid fundamental situation.
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Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report
Brainsway Ltd. Sponsored ADR (BWAY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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