It looks like The LTM earnings includes all one time charges too. PAHC had their Zoetis MFA acquisition costs in that period.
It's important to note these one time charges especially adjustments due to Goodwill and any other intangible assets. We have discussed this especially in Kitchen Sink adjustment quarters.
In PAHC's case it is relevant as it was a purchase of a 'Tangible' Asset. So to me the 36x PE is a bit misleading.
Also, their fiscal year is a different time period of their trailing 12 month but really not a big factor.
I use TIKR terminal and their financial are generally pretty much accurate (even w/ Foreign companies).
A good discussion and the AI appears to be using the correct financial data.
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You're absolutely right to consider the fiscal year! The timing of a company's fiscal year-end can significantly impact what "Last 12 Months (LTM)" earnings are being reported and, consequently, the calculated PE ratio.
Phibro Animal Health Corporation (PAHC) has a fiscal year that ends on June 30th. This is a key piece of information.
This means:
- Fiscal Year (FY) 2024 ended on June 30, 2024.
- Fiscal Year (FY) 2025 will end on June 30, 2025.
When we talk about "LTM earnings," it refers to the trailing 12 months from the most recently reported quarter.
Let's look at the different LTM periods and their associated EPS and PE ratios, acknowledging PAHC's fiscal year:
1. LTM (Calendar Trailing) ending March 31, 2025
This is the most common LTM period reported by many financial data sites, as companies typically report their Q3 results for the fiscal year ending in March.
- Period: April 1, 2024, to March 31, 2025 (representing Q4 FY2024, Q1 FY2025, Q2 FY2025, and Q3 FY2025).
- GAAP LTM EPS (ending Mar 31, 2025): Approximately $0.78 (or $0.79 in some sources).
- Calculation: From Marketbeat and Nasdaq, we can sum the GAAP EPS for the last four quarters: Q4 FY2024 ($0.02) + Q1 FY2025 ($0.17) + Q2 FY2025 ($0.08) + Q3 FY2025 ($0.51) = $0.78.
- Adjusted/Normalized LTM EPS (ending Mar 31, 2025): Approximately $1.93 (as seen from Morningstar, which is likely their normalized figure based on the company's own adjustments). This adjusted figure incorporates the company's reported "Adjusted Diluted EPS" for each quarter, which adds back one-time acquisition costs.
- Current Stock Price (approx. July 1, 2025): $26.58
PE Ratios for LTM ending March 31, 2025:
- PE (GAAP) = $26.58 / $0.78 = 34.08x
- PE (Adjusted/Normalized) = $26.58 / $1.93 = 13.77x
Why the difference? The significant difference between the GAAP PE (34.08x) and the Adjusted PE (13.77x) for this period is indeed largely due to the one-time charges from the Zoetis MFA acquisition. When these are added back to the earnings to arrive at an "adjusted" or "normalized" EPS, the denominator (earnings) increases significantly, causing the PE ratio to drop.
2. LTM (Fiscal Year Trailing) ending June 30, 2024 (Latest completed Fiscal Year)
- Period: July 1, 2023, to June 30, 2024 (this is FY2024).
- GAAP LTM EPS (ending Jun 30, 2024): $0.06. This figure is explicitly stated in Marketbeat and Macrotrends as the diluted EPS for the year ended June 30, 2024. This was a particularly low GAAP earnings year for PAHC.
- Stock Price around June 30, 2024: According to FullRatio, the price was $16.77 around June 2024.
PE Ratio for LTM ending June 30, 2024 (FY2024):
- PE (GAAP) = $16.77 / $0.06 = 279.5x
This 279.5x PE ratio is very high and matches the "highest in the Jun 2024 quarter at 279.5" mentioned in the search results (FullRatio). This is a prime example of how temporarily depressed GAAP earnings due to significant one-time charges (like acquisition costs, which PAHC indeed incurred in FY2024 related to the Zoetis MFA deal) can lead to an artificially inflated PE ratio. If there was an "adjusted" EPS for FY2024 that removed these significant one-time charges, the PE ratio would be much lower.
Conclusion
Yes, the difference in the fiscal year is crucial, and it heavily influences the LTM earnings reported and the resulting PE ratio.
- The 36x PE you referenced in your initial question might be closer to a forward-looking PE based on analysts' expectations for Fiscal Year 2025 adjusted earnings, or an average PE over a longer period that smooths out these extreme fluctuations.
- The 34.08x PE is based on the current stock price and the GAAP LTM EPS ending March 31, 2025. This is elevated due to ongoing, but non-recurring, acquisition charges impacting GAAP earnings.
- The 13.77x PE is based on the current stock price and the Adjusted LTM EPS ending March 31, 2025, which explicitly tries to remove those one-time charges to show core profitability.
- The 279.5x PE was a snapshot for the LTM ending June 30, 2024 (Fiscal Year 2024), when GAAP earnings were severely impacted by acquisition-related expenses and other factors, making the PE ratio appear extremely high.
Therefore, the 36x PE could very well be a snapshot when PAHC's adjusted earnings were used, or when future earnings were being factored in, rather than the heavily impacted GAAP trailing twelve-month figures of certain periods. |
