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Phibro Animal Health Corporation (PAHC)

Company Dividend Discount ModelIndustry: Drug Manufacturers - Specialty & GenericSector: Healthcare

Valuation Snapshot

Stable Growth$25.30 - $47.08$34.21
Multi-Stage$24.71 - $27.03$25.85
Blended Fair Value$30.03
Current Price$40.46
Upside-25.78%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.03%2.23%0.480.480.480.480.480.480.460.390.390.39
YoY Growth--0.04%0.00%0.00%0.06%0.06%4.44%15.67%1.55%0.76%0.72%
Dividend Yield--1.18%2.12%3.74%3.59%2.21%2.74%2.14%0.91%1.05%1.42%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)67.82
(-) Cash Dividends Paid (M)19.45
(=) Cash Retained (M)48.36
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13.568.485.09
Cash Retained (M)48.3648.3648.36
(-) Cash Required (M)-13.56-8.48-5.09
(=) Excess Retained (M)34.8039.8943.28
(/) Shares Outstanding (M)40.7540.7540.75
(=) Excess Retained per Share0.850.981.06
LTM Dividend per Share0.480.480.48
(+) Excess Retained per Share0.850.981.06
(=) Adjusted Dividend1.331.461.54
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.64%4.64%5.64%
Fair Value$25.30$34.21$47.08
Upside / Downside-37.47%-15.45%16.36%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)67.8270.9774.2677.7181.3285.0987.65
Payout Ratio28.68%40.95%53.21%65.47%77.74%90.00%92.50%
Projected Dividends (M)19.4529.0639.5150.8863.2176.5881.07

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate3.64%4.64%5.64%
Year 1 PV (M)26.3826.6426.89
Year 2 PV (M)32.5733.2033.84
Year 3 PV (M)38.0739.1840.32
Year 4 PV (M)42.9444.6246.35
Year 5 PV (M)47.2349.5551.96
PV of Terminal Value (M)819.88860.21902.10
Equity Value (M)1,007.071,053.401,101.46
Shares Outstanding (M)40.7540.7540.75
Fair Value$24.71$25.85$27.03
Upside / Downside-38.92%-36.11%-33.19%

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