Our analysis is based on comparing Phibro Animal Health Corp. with the following peers – Heska Corporation, ImmuCell Corporation, Aratana Therapeutics, Inc., Zoetis, Inc. Class A, Eli Lilly and Company, Merck & Co., Inc., Archer-Daniels-Midland Company and Kindred Biosciences, Inc. (HSKA-US, ICCC-US, PETX-US, ZTS-US, LLY-US, MRK-US, ADM-US and KIN-US).
Phibro Animal Health Corp.’s dividend yield is 1.20 percent and its dividend payout is 23.53 percent. This compares to a peer average dividend yield of 2.42 percent and a payout level of 58.88 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 83 out of a possible score of 100 looks sustainable.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), PAHC-US paid a high quality dividend, which represents a yield of 1.20% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 3.91x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), PAHC-US paid a high quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 5.15x), investing cash flow (coverage of -2.07x), issuance cash flow (coverage of -0.53x) and twelve-month prior cash (coverage of 2.36x), for a total dividend coverage of 4.91x.
PAHC-US’s issuance cash flow includes outflows from net debt repayment (coverage of -1.09x).
These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||N/A||2.94||1.03||2.14||1.07||1.2|
|Dividend Payout (%)||N/A||-200||26.49||19.32||24.84||23.53|
A complete list of metrics and analysis is available on the company page.
Phibro Animal Health Corp. engages in the manufacture of animal health and mineral nutrition products. It operates through the following business segments: Animal Health, Mineral Nutrition, and Performance Products. The Animal Health segment develops, manufactures, and markets antibacterial, nutritional specialty products, and vaccines. The Mineral Nutrition segment involves in the formulations and concentrations of trace minerals such as zinc, manganese, copper, iron, and compounds. The Performance Products segment offers production of specialty ingredients for use in the personal care, automotive, industrial chemical, and chemical catalyst industries. The company was founded on May 11, 1946 and is headquartered in Teaneck, NJ.
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