Eco Animal Health (EAH) AI Stock Analysis

• Market Cap: £40.66M
• Dividend Yield: N/A
• Average Volume (3M): 48.21K
• Price to Earnings (P/E): 61.9
• Beta (1Y): 0.67
• Revenue Growth: -4.37%
• EPS Growth: N/A
• Country: UK
• Employees: 222
• Sector: Healthcare
• Sector Strength: 74
• Industry: Pharmaceuticals
• EPS (TTM): <0.01
• Shares Outstanding: 67,759,674
• 10 Day Avg. Volume: 70,525
• 30 Day Avg. Volume: 48,207
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.48
• Price to Cash Flow (P/CF): 4.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Eco Animal Health's overall stock score reflects its strong balance sheet and strategic initiatives, which are offset by profitability challenges and weak technical indicators. The high P/E ratio suggests potential overvaluation, while recent corporate events highlight a positive strategic direction.

Eco Animal Health Business Overview & Revenue Model

Company Description

Eco Animal Health (EAH) is a global leader in the development, registration, and marketing of pharmaceutical products for animal health. Operating primarily in the veterinary pharmaceutical sector, the company focuses on providing high-quality, innovative solutions for the treatment and prevention of disease in livestock and companion animals. EAH's core products include a range of antibiotics, vaccines, and other health-enhancing pharmaceuticals designed to improve the well-being and productivity of animals worldwide.

How the Company Makes Money

Eco Animal Health makes money through the sale of its veterinary pharmaceutical products. The company's revenue model is based on the development and commercialization of proprietary animal health products, which are sold directly to veterinarians, farmers, and distributors across various regions. Key revenue streams include the sales of antibiotics and vaccines for livestock, such as pigs and poultry, as well as treatments for companion animals like cats and dogs. EAH also benefits from strategic partnerships and collaborations with other pharmaceutical companies and research institutions, which help to enhance its product offerings and extend its market reach. Additionally, the company invests in research and development to continuously innovate and expand its product pipeline, ensuring a steady flow of new and effective solutions to meet the evolving needs of the animal health industry.

Eco Animal Health Financial Statement Overview

Summary

Eco Animal Health shows financial stability with a strong balance sheet and consistent revenue growth. However, it faces profitability challenges and declining cash flows, indicating potential risks. Improving operational efficiency and cost management are needed to enhance profitability.

Income Statement

Eco Animal Health's revenue growth has been relatively stable, with a slight increase from 2023 to 2024. Gross profit margin remains solid at 42.1% for 2024, though net profit margin is low at 1.17%, indicating high expenses or other cost pressures. EBIT and EBITDA margins have decreased, suggesting declining operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.048 and a healthy equity ratio of 67.9%. Return on equity is modest at 1.25%, reflecting limited profitability. The company has a solid cash position, enhancing its financial stability.

Cash Flow

Operating cash flow has decreased significantly from the previous year, with a free cash flow growth rate of -50.7%. The operating cash flow to net income ratio suggests solid cash conversion, but the decreasing trend in free cash flow is a concern for future investments.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
89.42M	85.31M	82.19M	105.61M	72.11M
	Gross Profit
37.68M	36.75M	33.70M	51.54M	32.41M
	EBIT
3.54M	5.05M	4.53M	16.90M	6.50M
	EBITDA
6.48M	7.41M	3.62M	18.63M	7.97M
	Net Income Common Stockholders
1.05M	1.01M	-686.00K	7.34M	3.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.37M	21.66M	14.31M	19.52M	11.88M
	Total Assets
123.27M	121.31M	113.60M	116.89M	99.99M
	Total Debt
4.03M	4.48M	1.91M	1.52M	3.80M
	Net Debt
-18.35M	-17.18M	-12.40M	-18.00M	-8.08M
	Total Liabilities
29.89M	25.76M	19.25M	21.57M	19.54M
	Stockholders Equity
83.69M	83.27M	82.06M	81.90M	74.68M
Cash Flow		Free Cash Flow
4.94M	10.03M	-3.25M	11.04M	1.63M
	Operating Cash Flow
9.42M	16.01M	-358.00K	12.11M	4.51M
	Investing Cash Flow
-3.42M	-5.98M	-2.88M	-1.06M	-2.88M
	Financing Cash Flow
-3.69M	-2.40M	-3.31M	-684.00K	-8.67M

Eco Animal Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EAH, the sentiment is Negative. The current price of 60 is below the 20-day moving average (MA) of 60.10, below the 50-day MA of 64.03, and below the 200-day MA of 89.60, indicating a bearish trend. The MACD of -1.20 indicates Negative momentum. The RSI at 36.72 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EAH.

Eco Animal Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSTL	74 Outperform	£169.34M	27.50	20.02%	3.81%	10.32%	1.25%
GNS	70 Outperform	£1.23B	147.63	1.44%	1.74%	-0.22%	-111.98%
EAH	62 Neutral	£40.66M	61.86	1.25%	―	-4.37%	―
Sector *	49 Neutral	$7.05B	0.34	-55.09%	2.46%	25.27%	-3.43%

Eco Animal Health Corporate Events

ECO Animal Health Submits EU Vaccine Application for Poultry

ECO Animal Health Group has submitted a Marketing Authorisation Application to the European Medicines Agency for its ECOVAXXIN® Mycoplasma synoviae vaccine, marking a significant milestone in its vaccine development portfolio. This submission, slightly ahead of schedule, aligns with ECO’s commercialisation strategy and is expected to take 18 months for approval. The vaccine targets Mycoplasma synoviae, a significant poultry disease that causes economic losses due to reduced egg production and increased mortality. The company is also pursuing US marketing approval for the vaccine, anticipating simultaneous approval with Europe, and is working on a sister vaccine for Mycoplasma gallisepticum.

Eco Animal Health Sees Change in Voting Rights Stake

Eco Animal Health Group PLC has announced a change in its voting rights, following an acquisition or disposal of shares by Killik & Co LLP. The transaction, which took place on February 20, 2025, resulted in Killik & Co LLP holding 3.0659% of the voting rights in the company, up from a previous position of 3.0157%. This change reflects a slight increase in their stake, indicating a potential strategic interest in the company’s operations and future direction.

ECO Animal Health Sells Non-Core Assets to Focus on Pigs and Poultry

ECO Animal Health Group has sold certain non-core product lines, specifically ECOmectin licenses for sheep and cattle in Southern Africa, to a distribution partner for £491,000. This strategic move allows the company to sharpen its focus on its core business of pigs and poultry, reinvesting the proceeds into its R&D pipeline for new vaccines and preventatives, and potentially a share buy-back, subject to shareholder approval, to satisfy future employee share incentives.

ECO Animal Health to Host R&D Day Highlighting Innovations

ECO Animal Health Group announced an upcoming R&D Day scheduled for 13 March 2025, where the company’s leadership will present insights into their R&D pipeline to investors and analysts. This event is part of ECO’s strategy to showcase innovations in preventative animal health, aimed at driving long-term value creation and reinforcing its industry position.

ECO Animal Health Announces Leadership Transition

ECO Animal Health Group has announced a planned leadership transition as Dr. Andrew Jones will retire as Chairman of the Board on March 31, 2025, to be succeeded by Dr. Joachim Hasenmaier. Dr. Hasenmaier, who joined the Board as a Non-executive Director in 2024, has extensive experience in the animal health industry, previously leading transformation initiatives at Boehringer Ingelheim. This change is part of a strategic move to enhance ECO’s focus on commercializing its R&D pipeline, aiming to drive growth and deliver value for its stakeholders.

Eco Animal Health Group Announces Change in Shareholder Voting Rights

Eco Animal Health Group PLC announced a change in voting rights, indicating that Killik & Co LLP has increased its shareholding from 2.9921% to 3.0157% as of December 18, 2024. This acquisition of additional voting rights may influence Eco Animal Health’s decision-making and governance, potentially impacting its strategic direction and stakeholder interests.

Eco Animal Health Group Sees Shift in Major Shareholdings

Eco Animal Health Group PLC has announced a change in major holdings as Killik & Co LLP crossed a significant threshold of voting rights, now holding 3.0138% of the total voting rights. This acquisition or disposal of voting rights indicates a shift in shareholder dynamics, which could influence future company decisions and impact its strategic direction.