Here's Why Phibro Animal Health (PAHC) is a Strong Value Stock

Zacks
27 Dec 2024

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Phibro Animal Health (PAHC)

Headquartered in New Jersey, Phibro Animal Health Corporation is a leading global diversified animal health and mineral nutrition company. The company provides a broad range of products for food animals including poultry, swine, beef and dairy cattle and aquaculture. In addition to animal health and mineral nutrition products, Phibro manufactures and markets specific ingredients for use in the personal care, automotive, industrial chemical and chemical catalyst industries. At present, Phibro markets nearly 770 product lines in more than 80 countries to approximately 4,000 customers.

PAHC boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Phibro Animal Health are trading at a forward earnings multiple of 13.4X, as well as a PEG Ratio of 0.6, a Price/Cash Flow ratio of 10.3X, and a Price/Sales ratio of 0.8X.

A company's earnings performance is important for value investors as well. For fiscal 2025, three analysts revised their earnings estimate higher in the last 60 days for PAHC, while the Zacks Consensus Estimate has increased $0.05 to $1.62 per share. PAHC also holds an average earnings surprise of 25.5%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PAHC to their portfolios.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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