| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 0/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 4/6 |
PRGO Stock Overview
Perrigo Company plc provides over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to prevent or treat conditions that can be self-managed.
Perrigo Company plc Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$41.65 |
| 52 Week High | US$50.90 |
| 52 Week Low | US$31.32 |
| Beta | 0.91 |
| 1 Month Change | -0.41% |
| 3 Month Change | 13.27% |
| 1 Year Change | 0.90% |
| 3 Year Change | -8.80% |
| 5 Year Change | -46.39% |
| Change since IPO | 258.28% |
Recent News & Updates
Perrigo reports Q2 mixed results; raises FY22 organic net sales growth outlook
Perrigo press release (NYSE:PRGO): Q2 Non-GAAP EPS of $0.43 misses by $0.01. Revenue of $1.1B (+12.1% Y/Y) beats by $40M. Second quarter adjusted gross margin was 36.5%, an increase of 310 basis points sequentially compared to the first quarter 2022, while down 190 basis points compared to the prior year quarter. Increases fiscal 2022 organic net sales growth range outlook to 9.0%-10.0% from 8.0%-9.0% versus the prior year, due to continued strong global consumer demand; reaffirms fiscal 2022 total net sales growth range outlook of 8.5%-9.5% vs. estimated growth of 8.75% Y/Y as the organic net sales growth range outlook increase is expected to be offset by the worsening impact of currency translation. Expects to achieve constant currency adjusted EPS range outlook of $2.40-$2.50 per diluted share vs. consensus of $2.30, in line with guidance provided on March 1, 2022; updates adjusted EPS range outlook to $2.25-$2.35 from $2.30-$2.40, due entirely to the worsening impact of currency translation.
Perrigo declares $0.26 dividend
Perrigo (NYSE:PRGO) declares $0.26/share quarterly dividend, in line with previous. Forward yield 2.44% Payable Sept. 20; for shareholders of record Sept. 2; ex-div Sept. 1. See PRGO Dividend Scorecard, Yield Chart, & Dividend Growth.
Perrigo: HRA Acquisition To Drive Significant Growth
The acquisition of HRA Pharma to drive significant revenue and earnings growth for Perrigo in the coming quarters. PRGO is facing contracted gross margins due to inflationary headwinds. Perrigo has revised the FY22 guidance, raising both revenue and EPS estimates for FY22. I assign a buy rating for PRGO stock after considering all the growth and risk factors. Investment Thesis Perrigo Company plc (PRGO) is a manufacturer of over-the-counter pharmaceuticals. The company has completed HRA Pharma's acquisition and applied for FDA approval of new products. In this thesis, I will be analyzing the effects of all these factors on the company's future outlook. Company Overview PRGO offers over-the-counter (OTC) health and wellness products to improve personal wellbeing and provide customers the power to proactively prevent or treat problems that are treated on their own. The company operates in two segments: Consumer Self-Care Americas ((CSCA)) and Consumer Self-Care International (CSCI). CSCA's product portfolio comprises cough, cold, allergy, analgesics, gastrointestinal, smoking cessation, infant formula, oral care, animal health category, and contract manufacturing which are distributed in the USA, Mexico, and Canada. This segment contributes 65% of total net revenue. CSCI comprises PRGO's products such as natural health and vitamins, cough, cold and allergy, personal care and derma-therapeutics, and lifestyle categories with brand value in Europe and Australia. The company also operates its stores in the United Kingdom and parts of Asia under the CSCI segment. This segment generates 35% of the total revenue. The company focuses on acquisitions to boost its inorganic growth and new product innovations to expand the current market share and maintain its organic revenue growth. Last year the company launched many products under both operating segments. The new product revenue of the CSCA segment was $56.1 million, while the CSCI segment's new product revenue was $73.9 million. The company pays a dividend yield of 2.54%. I believe the company will benefit from the new and previous acquisitions and the latest product launch, which will impact future results positively. The company has completed the acquisition of HRA Pharma. It has also received FDA approval for Omeprazole Magnesium and submitted the first-ever over-the-counter birth control pill application. Acquisition of HRA Pharma Recently, the company announced the successful completion of the acquisition Héra SAS (HRA). The company closed the deal two months before the scheduled date. With this acquisition, PRGO will own all of the HRA's brands from blister care, women's health, and scar care segment. HRA has acquired more than 70% market share of the blister care market, while it has more than 50% market share of the women's health and scar care segment. HRA is planning to launch its blister care business in the USA and expand its women's health care business in untapped territories of Europe. HRA will also broaden the scar care product portfolio to a broader dermatological application. PRGO is estimating a high growth outlook for the integration of the HRA with the €55 million-€65 million or $65.8 million to $77.8 million in operating income from 8 Months of HRA integration in 2022. Investor Presentation PRGO The company has executed the acquisition for €1.8 billion, or approximately $1.9 billion in cash. I believe this deal will be a primary growth factor for the company because of the outlined expansionary plan of HRA, which is explained in the above paragraph. With this acquisition and expansionary plans in various geographies, PRGO's earnings will rise significantly and experience robust growth in the coming years. FDA Application for New Products PRGO always invests money in product innovation and new product launches to expand its earnings. Recently, the company received FDA approval to sell the Omeprazole Magnesium Delayed-Release Mini Capsules, 20 mg over-the-counter. The company plans to launch the Omeprazole Minis by the end of this year. This is a launch of the first-to-market mini capsule form of omeprazole which is used for the treatment of heartburn. The size of the capsule is 70% smaller than the original version. The product will be promoted under store brand labels. PRGO's HRA Pharma has applied for FDA approval first over-the-counter birth control pill, which is marketed in the US. This is the first daily birth control pill in the US to be sold over-the-counter (OTC) without a prescription if it gets authorized, and I believe with the recent strict abortion policy, this product can turn out as a big positive for the company which will support the primary catalyst. I think the launch of mentioned products will boost the company's earnings in the coming quarters as both are the first to the market move. Perrigo Financials SEC:10Q PRGO PRGO reported net sales of $1.07 billion, a 6.5% increase from $1.01 billion in Q1 2021. This includes an organic net sales increase of 9.7%, primarily driven by strong demand for cough products globally and infant formula in the United States. The company saw a significant rise in the cost of sales from $641 million in Q1 2021 to $736.7 million, majorly due to inflationary headwinds. I believe the inflation will have a negative impact on the gross margins in FY22, but the situation in the coming quarters will see an improvement compared to Q1 2022, given the several approvals for product distribution and the acquisition of HRA Pharma. The company reported diluted loss per share from continued operations of $0.01 compared to diluted EPS of $0.02 in Q1 2021 and diluted loss per share of $0.01 from discontinued operations, compared to diluted EPS of $0.26 in Q1 2021. The company reported a total loss per diluted share of $0.02, compared to EPS of $0.28 in the Q1 2021. The decline can be attributed to the high cost of production due to global inflationary pressure. Q1 2022 result reflected positive revenue growth, but the gross margins were disappointing, and the EPS missed market estimates by 21%. However, the company has provided strong guidance for FY22 both in terms of revenue and EPS growth. The company has raised the FY22 revenue guidance from 3.5%-4.5% to 8.5%-9.5%. The company also raised the FY22 adjusted EPS guidance from $2.10-$2.30 to $2.30-$2.40. As per my analysis, the primary factor behind the revised guidance is the acquisition of HRA Pharma, with HRA Pharma's expected contribution to FY22 EPS at $0.35. I believe HRA Pharma will drive significant growth for the company in the coming quarters. President and CEO, Murray S. Kessler, stated: First quarter earnings were in-line with our expectations, despite significant and increasing cost headwinds and a significantly strengthening U.S. dollar. We now expect full year 2022 cost headwinds to increase by approximately $125 million versus prior year as compared to our original expectation of an increase of $80 million. While price increases and procurement actions are expected to offset inflation for the full year, adverse foreign exchange rate movements and to a lesser extent business disruption in Ukraine and Russia are likely to remain. With the addition of HRA Pharma and higher expectations for organic net sales growth, we expect to more than offset these headwinds and have raised our net sales and adjusted EPS guidance for the year. SEC:10Q PRGO
Shareholder Returns
| PRGO | US Pharmaceuticals | US Market | |
|---|---|---|---|
| 7D | -1.9% | -0.6% | 1.3% |
| 1Y | 0.9% | 0.7% | -11.7% |
Return vs Industry: PRGO underperformed the US Pharmaceuticals industry which returned 3.2% over the past year.
Return vs Market: PRGO exceeded the US Market which returned -11.6% over the past year.
Price Volatility
| PRGO volatility | |
|---|---|
| PRGO Average Weekly Movement | 3.6% |
| Pharmaceuticals Industry Average Movement | 11.7% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: PRGO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PRGO's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1887 | 9,900 | Murray Kessler | https://www.perrigo.com |
Perrigo Company plc provides over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to prevent or treat conditions that can be self-managed. The company operates through two segments, Consumer Self-Care Americas and Consumer Self-Care International. The Consumer Self-Care Americas segment focuses primarily on the development, manufacture, marketing, and sale of store brand, self-care products in categories, including upper respiratory, pain and sleep-aids, digestive health, nutrition, vitamins, minerals and supplements, healthy lifestyle, skincare and personal hygiene, and oral self-care in the United States, Mexico, Canada, and South America.
Perrigo Company plc Fundamentals Summary
| PRGO fundamental statistics | |
|---|---|
| Market Cap | US$5.60b |
| Earnings (TTM) | -US$88.00m |
| Revenue (TTM) | US$4.34b |
1.3x
P/S Ratio-63.7x
P/E RatioIs PRGO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PRGO income statement (TTM) | |
|---|---|
| Revenue | US$4.34b |
| Cost of Revenue | US$2.94b |
| Gross Profit | US$1.41b |
| Other Expenses | US$1.50b |
| Earnings | -US$88.00m |
Last Reported Earnings
Jul 02, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.65 |
| Gross Margin | 32.43% |
| Net Profit Margin | -2.03% |
| Debt/Equity Ratio | 84.6% |
How did PRGO perform over the long term?
See historical performance and comparisonDividends
2.5%
Current Dividend Yield-152%
Payout RatioDoes PRGO pay a reliable dividends?
See PRGO dividend history and benchmarks| Perrigo dividend dates | |
|---|---|
| Ex Dividend Date | Sep 01 2022 |
| Dividend Pay Date | Sep 20 2022 |
| Days until Ex dividend | 19 days |
| Days until Dividend pay date | 38 days |
Does PRGO pay a reliable dividends?
See PRGO dividend history and benchmarks