NYSE:PBH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) healthcare products in North America, Australia, and internationally. More Details


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Prestige Consumer Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PBH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PBH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

PBH

2.6%

US Pharmaceuticals

0.9%

US Market


1 Year Return

-7.2%

PBH

6.2%

US Pharmaceuticals

22.1%

US Market

Return vs Industry: PBH underperformed the US Pharmaceuticals industry which returned 7% over the past year.

Return vs Market: PBH underperformed the US Market which returned 22.2% over the past year.


Shareholder returns

PBHIndustryMarket
7 Day-2.7%2.6%0.9%
30 Day3.1%6.6%10.2%
90 Day-3.9%2.3%9.7%
1 Year-7.2%-7.2%9.0%6.2%24.8%22.1%
3 Year-23.9%-23.9%24.9%16.0%48.6%38.7%
5 Year-32.1%-32.1%34.5%19.6%99.6%77.6%

Long-Term Price Volatility Vs. Market

How volatile is Prestige Consumer Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Prestige Consumer Healthcare undervalued compared to its fair value and its price relative to the market?

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PBH ($35.39) is trading below our estimate of fair value ($60.26)

Significantly Below Fair Value: PBH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PBH is good value based on its PE Ratio (10.9x) compared to the US Pharmaceuticals industry average (21x).

PE vs Market: PBH is good value based on its PE Ratio (10.9x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: PBH is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: PBH is good value based on its PB Ratio (1.4x) compared to the US Pharmaceuticals industry average (3.7x).


Next Steps

Future Growth

How is Prestige Consumer Healthcare forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PBH's forecast earnings growth (2.6% per year) is above the savings rate (2.2%).

Earnings vs Market: PBH's earnings (2.6% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: PBH's earnings are forecast to grow, but not significantly.

Revenue vs Market: PBH's revenue (0.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: PBH's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PBH's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Prestige Consumer Healthcare performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PBH has high quality earnings.

Growing Profit Margin: PBH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PBH's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: PBH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PBH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.8%).


Return on Equity

High ROE: PBH's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is Prestige Consumer Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: PBH's short term assets ($269.9M) exceed its short term liabilities ($136.1M).

Long Term Liabilities: PBH's short term assets ($269.9M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: PBH's debt to equity ratio (121.5%) is considered high.

Reducing Debt: PBH's debt to equity ratio has reduced from 214.3% to 121.5% over the past 5 years.

Debt Coverage: PBH's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: PBH's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Prestige Consumer Healthcare current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PBH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PBH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PBH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PBH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PBH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Ron Lombardi (56 yo)

5.5yrs

Tenure

US$5,051,679

Compensation

Mr. Ronald M. Lombardi, also known as Ron, has been the Chief Executive Officer and President of Prestige Brands Holdings, Inc. (now Prestige Consumer Healthcare Inc.) since June 2015 and has been its Chai...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD5.05M) is about average for companies of similar size in the US market ($USD4.17M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Lombardi
Chairman5.5yrsUS$5.05m0.40%
$ 7.0m
Christine Sacco
Chief Financial Officer4.25yrsUS$1.72m0.073%
$ 1.3m
Jeffrey Zerillo
Senior Vice President of Operations2.67yrsUS$800.41k0.023%
$ 411.2k
William P'Pool
Senior VP4.08yrsUS$1.21m0.042%
$ 737.3k
Adel Mekhail
Executive Vice President of Marketing & Sales1.58yrsUS$1.12mno data
Philip Terpolilli
Director of Investor Relationsno datano datano data
Dean Siegal
Director of Communicationsno datano datano data
Mary Fritz
Senior Vice President of Quality & Regulatory Affairs2.5yrsno data0.015%
$ 263.5k

3.4yrs

Average Tenure

56yo

Average Age

Experienced Management: PBH's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Lombardi
Chairman5.5yrsUS$5.05m0.40%
$ 7.0m
Gary Costley
Lead Independent Director11.25yrsUS$249.52k0.015%
$ 265.4k
John Byom
Independent Director14.92yrsUS$242.02k0.078%
$ 1.4m
James Jenness
Independent Director5.58yrsUS$238.90k0.0084%
$ 148.6k
Natale Ricciardi
Independent Director4.58yrsUS$224.52k0.0060%
$ 106.2k
Dawn Zier
Director0.58yrUS$36.26kno data
Christopher Coughlin
Independent Director1.42yrsUS$185.44k0.0083%
$ 148.1k
Sheila Hopkins
Independent Director5.33yrsUS$224.52k0.029%
$ 513.0k

5.0yrs

Average Tenure

67yo

Average Age

Experienced Board: PBH's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Prestige Consumer Healthcare Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prestige Consumer Healthcare Inc.
  • Ticker: PBH
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.773b
  • Shares outstanding: 50.10m
  • Website: https://www.prestigebrands.com

Number of Employees


Location

  • Prestige Consumer Healthcare Inc.
  • 660 White Plains Road
  • Suite 250
  • Tarrytown
  • New York
  • 10591
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PBVDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2005
PBHNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2005

Biography

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) healthcare products in North America, Australia, and intern...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 23:46
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.