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Phibro Animal HealthPAHC -3.41%75 Operating Margin % is 11.64% as of Mar. 2026, which is 32% above its 10-year median of 8.82. GuruFocus rates PAHC with a GF Score™ of 75/100 and a GF Value™ of $29.54 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 960 Drug Manufacturers companies, Phibro Animal Health ranks better than 61.25% on this metric.
Phibro Animal Health (NAS:PAHC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Phibro Animal Health Operating Margin % Related Terms
Phibro Animal Health Operating Margin % Historical Data
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The historical data trend for Phibro Animal Health's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PAHC vs PRGO, HROW, XERS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Phibro Animal Health's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Phibro Animal Health Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Phibro Animal Health's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Phibro Animal Health's Operating Margin % falls into.
Phibro Animal Health Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Phibro Animal Health's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Phibro Animal Health (PAHC) has a Operating Margin % of 11.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Phibro Animal Health and its competitors. This is 32% above median its historical median of 8.82. Over the past decade, Phibro Animal Health's Operating Margin % has ranged from 5.24 to 12.81. According to the industry distribution chart, Phibro Animal Health ranks #372 out of 960 companies in the Drug Manufacturers industry, placing it in the top 38.7%.
Is Phibro Animal Health's Operating Margin % too high?
Phibro Animal Health's current Operating Margin % of 11.64% is 32% above median its 10-year median of 8.82. Over the past 10 years, this metric has ranged from a low of 5.24 to a high of 12.81. The Drug Manufacturers industry median Operating Margin % is 7.42. Phibro Animal Health's value of 11.64% is 56.9% above this industry median. Based on the distribution chart, Phibro Animal Health ranks #372 out of 960 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Phibro Animal Health has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Phibro Animal Health's Operating Margin % compare to PRGO and HROW?
According to the Drug Manufacturers industry distribution chart, Phibro Animal Health ranks #372 out of 960 companies for Operating Margin %. This puts Phibro Animal Health in the upper half of its industry. The industry median Operating Margin % is 7.42. Phibro Animal Health's value of 11.64% is 56.9% above this benchmark. Historically, Phibro Animal Health's own Operating Margin % has ranged from 5.24 to 12.81 over the past decade. While the company's 10-year median is 8.82 vs. the industry median of 7.42, Phibro Animal Health has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.42, based on 960 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Phibro Animal Health's current Operating Margin % of 11.64% is 56.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Phibro Animal Health and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Phibro Animal Health's current Operating Margin % is 11.64%, which is 32% above median its own 10-year median of 8.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Phibro Animal Health stock overvalued right now?
Based on GuruFocus' analysis, Phibro Animal Health (PAHC) is currently considered Modestly Overvalued. The stock's GF Value™ is $29.54, compared to a current price of $34.26 — trading 16% above its estimated fair value. The current Operating Margin % is 11.64%, which is 32% above median its 10-year median of 8.82 and 56.9% above the Drug Manufacturers industry median of 7.42. Phibro Animal Health's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Phibro Animal Health (PAHC), the current Operating Margin % is 11.64% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Phibro Animal Health (PAHC) Overvalued in 2026?
Based on GuruFocus' analysis, Phibro Animal Health stock appears to be overvalued.
The current stock price of $34.26 is trading 16% above its estimated GF Value™ of $29.54.
GuruFocus considers Phibro Animal Health to be Modestly Overvalued.
Key valuation signals for PAHC:
Operating Margin %: 11.64% (32% above median its 10-year median of 8.82)
GF Value™: $29.54 vs. price of $34.26 (16% above fair value)
Industry Position: 56.9% above the Drug Manufacturers median (#372 of 960)
No single metric tells the full story. See the PAHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Phibro Animal Health Corp operates as a diversified animal health and mineral nutrition company. It develops, manufactures, and markets products for a range of food animals comprising poultry, swine, beef and dairy cattle, and aquaculture. The product portfolio of the company includes animal health products such as antibacterials, anticoccidials, nutritional specialty products and vaccines, and mineral nutrition products. The company operates through three segments, Animal Health, Mineral Nutrition, and Performance Products, of which key revenue is derived from the Animal Health segment which relates to the development, manufacturing, and marketing of antibacterials, nutritional specialty products, and vaccines. The entity sells its products in the U.S. and other international countries.
75GF Score
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