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Perrigo Co PLC PRGO

Morningstar Rating
$25.60 −0.52 (1.99%)
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Company Report

Perrigo's Weak Start to 2024 Is Disappointing but Doesn't Take Away Its Long-Term Potential

Once a company with presence in various industries, including generic pharmaceuticals and animal health, Perrigo spent the last few years divesting noncore businesses to simplify its operation and fully focus on consumer healthcare products. Perrigo is now a pure-play consumer healthcare player and is the largest private-label over-the-counter, or OTC, consumer healthcare manufacturer in the U.S., supplying over 50% of the market on a volume basis. While we believe the retailer often wields more negotiation leverage in a fragmented OTC market due to a number of manufacturers competing for the same set of retailers, we expect Perrigo’s market share to be stable thanks to the company’s long-standing record for reliability, large-volume manufacturing capacity, and expertise in shelf space management. We expect Perrigo’s private label business to grow low single digits over the next five years from both price actions and modest volume growth.

Price vs Fair Value

PRGO is trading at a 819% premium.
Price
$26.12
Fair Value
$14.00
Uncertainty
Medium
1-Star Price
$14.10
5-Star Price
$28.80
Economic Moat
Ycf
Capital Allocation
Gydycbcp

Bulls Say, Bears Say

Bulls

Perrigo is now more tapped in to the higher-margin branded consumer health market, and this should act as tailwind to the top and bottom lines in future.

Bears

By expanding its business to focus more on branded products, Perrigo now faces stiffer competition from larger consumer healthcare product manufacturers.

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News

Trading Information

Previous Close Price
$26.12
Day Range
$25.4926.11
52-Week Range
$25.3540.28
Bid/Ask
$25.56 / $26.10
Market Cap
$3.49 Bil
Volume/Avg
1.1 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
10.79
Price/Sales
0.78
Dividend Yield (Trailing)
4.20%
Dividend Yield (Forward)
4.23%
Total Yield
4.20%

Company Profile

Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two thirds of total sales), the firm’s product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Small Value
Total Number of Employees
9,140

Competitors

Valuation

Metric
PRGO
HLN
PG
Price/Earnings (Normalized)
10.7918.8025.79
Price/Book Value
0.761.898.07
Price/Sales
0.782.834.96
Price/Cash Flow
7.3717.8520.54
Price/Earnings
PRGO
HLN
PG

Financial Strength

Metric
PRGO
HLN
PG
Quick Ratio
0.920.630.40
Current Ratio
1.811.040.69
Interest Coverage
0.364.9420.73
Quick Ratio
PRGO
HLN
PG

Profitability

Metric
PRGO
HLN
PG
Return on Assets (Normalized)
3.06%13.82%
Return on Equity (Normalized)
6.94%35.61%
Return on Invested Capital (Normalized)
5.38%20.62%
Return on Assets
PRGO
HLN
PG
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