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Perrigo

NYSE:PRGO
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PRGO
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Perrigo Company plc, a healthcare company, manufactures and supplies over-the-counter (OTC) healthcare products, infant formulas, branded OTC products, and generic pharmaceutical products. The last earnings update was 48 days ago. More info.


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PRGO Share Price and Events
7 Day Returns
2.5%
NYSE:PRGO
1.8%
US Pharmaceuticals
1.4%
US Market
1 Year Returns
-38.7%
NYSE:PRGO
10.3%
US Pharmaceuticals
4.9%
US Market
PRGO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Perrigo (PRGO) 2.5% -3.9% -4% -38.7% -50.3% -70.3%
US Pharmaceuticals 1.8% 2.2% -1% 10.3% 13% 16.4%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • PRGO underperformed the Pharmaceuticals industry which returned 10.3% over the past year.
  • PRGO underperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
PRGO
Industry
5yr Volatility vs Market

PRGO Value

 Is Perrigo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Perrigo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Perrigo.

NYSE:PRGO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PRGO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.1%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.641 (1 + (1- 12.5%) (54.45%))
0.964
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.964 * 7.14%)
9.62%

Discounted Cash Flow Calculation for NYSE:PRGO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Perrigo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:PRGO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.62%)
2019 733.07 Analyst x3 668.76
2020 811.77 Analyst x3 675.59
2021 880.00 Analyst x1 668.13
2022 936.93 Est @ 6.47% 648.95
2023 987.03 Est @ 5.35% 623.68
2024 1,032.06 Est @ 4.56% 594.93
2025 1,073.48 Est @ 4.01% 564.52
2026 1,112.42 Est @ 3.63% 533.68
2027 1,149.78 Est @ 3.36% 503.22
2028 1,186.23 Est @ 3.17% 473.62
Present value of next 10 years cash flows $5,955.09
NYSE:PRGO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,186.23 × (1 + 2.73%) ÷ (9.62% – 2.73%)
$17,697.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $17,697.30 ÷ (1 + 9.62%)10
$7,065.99
NYSE:PRGO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,955.09 + $7,065.99
$13,021.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $13,021.08 / 135.99
$95.75
NYSE:PRGO Discount to Share Price
Calculation Result
Value per share (USD) From above. $95.75
Current discount Discount to share price of $45.50
= -1 x ($45.50 - $95.75) / $95.75
52.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Perrigo is available for.
Intrinsic value
>50%
Share price is $45.5 vs Future cash flow value of $95.75
Current Discount Checks
For Perrigo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Perrigo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Perrigo's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Perrigo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Perrigo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PRGO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $0.84
NYSE:PRGO Share Price ** NYSE (2019-06-25) in USD $45.5
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 29 Publicly-Listed Pharmaceuticals Companies 18.19x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Perrigo.

NYSE:PRGO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PRGO Share Price ÷ EPS (both in USD)

= 45.5 ÷ 0.84

54.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Perrigo is overvalued based on earnings compared to the US Pharmaceuticals industry average.
  • Perrigo is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Perrigo's expected growth come at a high price?
Raw Data
NYSE:PRGO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 54.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-43.3%per year
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 21 Publicly-Listed Pharmaceuticals Companies 1.63x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:PRGO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 54.46x ÷ -43.3%

-1.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Perrigo earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Perrigo's assets?
Raw Data
NYSE:PRGO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $41.92
NYSE:PRGO Share Price * NYSE (2019-06-25) in USD $45.5
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 183 Publicly-Listed Pharmaceuticals Companies 3.24x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NYSE:PRGO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PRGO Share Price ÷ Book Value per Share (both in USD)

= 45.5 ÷ 41.92

1.09x

* Primary Listing of Perrigo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Perrigo is good value based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Perrigo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Perrigo has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PRGO Future Performance

 How is Perrigo expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-43.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Perrigo expected to grow at an attractive rate?
  • Perrigo's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Perrigo's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Perrigo's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PRGO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PRGO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -43.3%
NYSE:PRGO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PRGO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PRGO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,922 744 5
2022-12-31 4,838 703 5
2021-12-31 4,818 705 -261 9
2020-12-31 4,763 703 346 11
2019-12-31 4,717 560 297 10
NYSE:PRGO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 4,689 515 114
2018-12-31 4,732 593 131
2018-09-29 4,820 616 123
2018-06-30 4,918 668 235
2018-03-31 4,969 677 129
2017-12-31 4,946 699 120
2017-09-30 4,994 688 -1,313
2017-07-01 5,025 711 -2,947
2017-04-01 5,127 751 -3,412
2016-12-31 5,281 655 -4,013
2016-10-01 5,308 596 -2,872
2016-07-02 5,320 431 -1,021
2016-04-02 5,395 683 -509

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Perrigo's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Perrigo's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PRGO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Perrigo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PRGO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 3.00 3.00 3.00 1.00
2022-12-31 2.74 2.74 2.74 1.00
2021-12-31 2.13 2.13 2.13 1.00
2020-12-31 2.29 2.76 1.65 3.00
2019-12-31 1.63 1.63 1.63 1.00
NYSE:PRGO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 0.84
2018-12-31 0.95
2018-09-29 0.88
2018-06-30 1.67
2018-03-31 0.91
2017-12-31 0.84
2017-09-30 -9.19
2017-07-01 -20.56
2017-04-01 -23.80
2016-12-31 -28.00
2016-10-01 -19.99
2016-07-02 -7.07
2016-04-02 -3.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Perrigo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Perrigo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Perrigo has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PRGO Past Performance

  How has Perrigo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Perrigo's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Perrigo's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Perrigo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Perrigo's 1-year earnings growth is negative, it can't be compared to the US Pharmaceuticals industry average.
Earnings and Revenue History
Perrigo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Perrigo Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PRGO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 4,689.20 114.10 1,127.20 220.40
2018-12-31 4,731.70 131.00 1,123.80 218.60
2018-09-29 4,819.60 122.80 1,151.30 220.90
2018-06-30 4,917.70 234.60 1,175.40 215.70
2018-03-31 4,969.20 128.80 1,157.80 166.30
2017-12-31 4,946.20 119.60 1,145.70 167.70
2017-09-30 4,994.40 -1,312.70 1,160.70 162.30
2017-07-01 5,024.70 -2,947.30 1,153.90 174.10
2017-04-01 5,127.30 -3,412.00 1,176.90 178.50
2016-12-31 5,280.60 -4,012.80 1,205.90 184.00
2016-10-01 5,308.30 -2,872.00 1,241.20 189.00
2016-07-02 5,320.00 -1,020.90 1,289.10 180.40
2016-04-02 5,394.70 -508.90 1,313.10 196.10
2015-12-31 5,014.60 -1.90 1,143.50 186.20
2015-09-26 4,997.10 144.30 912.30 192.80
2015-06-27 4,227.10 136.10 742.30 187.80
2015-03-28 4,216.50 203.40 591.30 163.20
2014-12-27 4,171.50 346.50 486.70 172.50
2014-09-27 4,078.90 190.20 570.40 156.80
2014-06-28 3,914.10 232.80 566.30 152.50
2014-03-29 3,883.80 191.80 527.70 145.50
2013-12-28 3,799.50 255.70 615.50 129.30
2013-09-28 3,703.40 447.70 514.70 120.10
2013-06-29 3,539.80 441.90 473.80 115.20
2013-03-30 3,404.32 430.58 444.78 111.26
2012-12-29 3,262.44 434.30 418.65 110.71
2012-09-29 3,217.71 428.14 409.91 113.56
2012-06-30 3,173.20 393.00 411.80 105.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Perrigo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Perrigo used its assets less efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.
  • Perrigo has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Perrigo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Perrigo has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PRGO Health

 How is Perrigo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Perrigo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Perrigo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Perrigo's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Perrigo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Perrigo Company Filings, last reported 2 months ago.

NYSE:PRGO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 5,700.80 3,211.20 841.60
2018-12-31 5,668.10 3,242.40 560.50
2018-09-29 5,660.00 3,265.20 451.20
2018-06-30 5,897.30 3,283.00 534.60
2018-03-31 6,205.60 3,338.60 701.10
2017-12-31 6,170.60 3,341.20 695.70
2017-09-30 6,041.80 3,692.80 782.00
2017-07-01 6,081.20 3,674.80 774.40
2017-04-01 6,067.30 5,794.30 3,100.60
2016-12-31 5,957.60 5,797.30 660.50
2016-10-01 7,482.60 5,903.00 415.70
2016-07-02 9,048.40 6,410.60 681.80
2016-04-02 9,725.40 6,553.40 627.50
2015-12-31 10,106.80 6,032.40 432.70
2015-09-26 10,732.00 5,375.00 523.00
2015-06-27 10,699.50 5,400.20 798.30
2015-03-28 9,585.70 4,731.80 3,452.20
2014-12-27 9,715.20 4,807.50 3,616.10
2014-09-27 8,716.70 3,199.20 913.10
2014-06-28 8,693.70 3,215.10 805.40
2014-03-29 8,558.70 3,276.10 617.10
2013-12-28 8,501.20 3,310.10 606.60
2013-09-28 2,469.90 2,009.80 816.60
2013-06-29 2,332.60 1,970.90 779.90
2013-03-30 2,225.33 1,390.79 300.83
2012-12-29 2,108.46 1,386.35 459.51
2012-09-29 1,965.32 1,386.54 631.99
2012-06-30 1,852.60 1,384.00 602.50
  • Perrigo's level of debt (56.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.2% vs 56.4% today).
  • Debt is not well covered by operating cash flow (16%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Perrigo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Perrigo has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PRGO Dividends

 What is Perrigo's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.85%
Current annual income from Perrigo dividends. Estimated to be 1.8% next year.
If you bought $2,000 of Perrigo shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Perrigo's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Perrigo's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PRGO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PRGO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.92 1.00
2022-12-31 0.88 1.00
2021-12-31 0.85 4.00
2020-12-31 0.82 6.00
2019-12-31 0.77 6.00
NYSE:PRGO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.840 1.803
2019-02-14 0.760 1.558
2018-10-31 0.760 1.476
2018-08-01 0.760 1.041
2018-05-03 0.760 1.006
2018-02-15 0.760 0.920
2017-11-02 0.640 0.730
2017-08-08 0.640 0.776
2017-05-03 0.640 0.877
2017-02-21 0.640 0.904
2016-11-08 0.580 0.706
2016-08-02 0.580 0.642
2016-04-26 0.580 0.615
2016-02-16 0.580 0.453
2015-11-04 0.500 0.339
2015-08-12 0.500 0.294
2015-04-28 0.500 0.264
2015-01-27 0.500 0.301
2014-11-03 0.420 0.262
2014-08-13 0.420 0.281
2014-04-28 0.420 0.293
2014-02-06 0.360 0.233
2013-08-14 0.360 0.259
2013-05-02 0.360 0.295
2013-01-31 0.360 0.312
2012-11-06 0.360 0.346
2012-08-15 0.320 0.280
2012-05-03 0.320 0.291
2012-02-02 0.320 0.315
2011-10-26 0.320 0.335
2011-08-11 0.280 0.298
2011-04-28 0.280 0.321
2011-01-26 0.280 0.360
2010-10-27 0.280 0.433
2010-08-11 0.250 0.403
2010-04-28 0.250 0.428
2010-01-27 0.250 0.477
2009-10-29 0.250 0.629
2009-08-13 0.220 0.681
2009-05-06 0.220 0.814
2009-01-28 0.220 0.941
2008-11-04 0.220 0.698
2008-08-13 0.200 0.577

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Perrigo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
X
Income/ dividend checks
We assess Perrigo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Perrigo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Perrigo has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PRGO Management

 What is the CEO of Perrigo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Murray Kessler
COMPENSATION $5,026,434
AGE 58
TENURE AS CEO 0.7 years
CEO Bio

Mr. Murray S. Kessler has been the Chief Executive Officer, President and Director of Perrigo Company plc since October 8, 2018. Mr. Kessler had a 30 years of leadership experience in growing consumer products companies and managing businesses in a regulated environment. He has been President at United States Equestrian Federation Inc since January 2017. Mr. Kessler served as the Chief Executive Officer and President of Lorillard, Inc. since September 13, 2010 until June 2012, 2015. Mr. Kessler served as the Chief Operating Officer of UST LLC since November 3, 2005. He served as the President of UST LLC from November 3, 2005 to June 30, 2009 and served as its Chief Executive Officer from January 1, 2007 to June 30, 2009. He served as the President of U.S. Smokeless Tobacco Company (USSTC) from April 6, 2000 to November 3, 2005. He served as Senior Vice President of USSTC from January 2000 to April 2000. He served as Vice President of Vlasic Foods International, Inc. and served as President of Swanson Frozen Foods Division from March 1998 to December 1999. From October 1997 to March 1998, Mr. Kessler served as General Manager of the Swanson Division of Campbell Soup Company. From September 1995 to October 1997, he served as Vice President of Sales and Marketing of Pace Foods, a division of Campbell Soup Company. Mr. Kessler has more than 18 years of consumer packaged goods experience at companies including Campbell Soup and Clorox. He served as the Chairman of Lorillard, Inc. since January 1, 2011 until June 12, 2015. He served as an Executive Chairman at UST LLC from January 1, 2008 to January 2009. He served as Vice Chairman of Altria Group Inc., until June 30, 2009. He served as an Independent Director of Reynolds American Inc. from June 12, 2015 to July 25, 2017. He served as a Director at Lorillard, Inc. since September 13, 2010 until June 12, 2015. He served as an Executive Director of UST LLC, from November 3, 2005 to January 2009. He served on the boards of the North American Riders Group, the USET Foundation and the USEF. His professional career has given him a broad skill set consisting of financial, audit, governance, management, marketing, sponsorship, strategic planning and operational expertise. Mr. Kessler received a Bachelor of Science degree in Business Administration from Villanova University and Master of Business Administration in Marketing and Finance from New York University's Stern School.

CEO Compensation
  • Insufficient data for Murray to compare compensation growth.
  • Murray's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Perrigo management team in years:

3
Average Tenure
58
Average Age
  • The tenure for the Perrigo management team is about average.
Management Team

Murray Kessler

TITLE
CEO, President & Director
COMPENSATION
$5M
AGE
58
TENURE
0.7 yrs

Todd Kingma

TITLE
Executive VP
COMPENSATION
$3M
AGE
58
TENURE
15.8 yrs

Jeff Needham

TITLE
Executive VP & President of Consumer Healthcare Americas
COMPENSATION
$3M
AGE
62
TENURE
9.7 yrs

Svend Andersen

TITLE
Executive VP & President of Consumer Healthcare International
COMPENSATION
$2M
AGE
56
TENURE
2.3 yrs

Ron Winowiecki

TITLE
Advisory
COMPENSATION
$3M
AGE
52
TENURE
0.3 yrs

Ray Silcock

TITLE
CFO, Principal Accounting Officer & Executive VP
AGE
67
TENURE
0.3 yrs

Ron Janish

TITLE
Executive Vice President of Global Operations & Supply Chain
AGE
52
TENURE
3.7 yrs

Shannon Hukill

TITLE
Senior Director of Technical Operations
TENURE
7.8 yrs

Tom Farrington

TITLE
Chief Information Officer & Executive VP
AGE
61
TENURE
12.7 yrs

Jim Dillard

TITLE
Executive VP & Chief Scientific Officer
AGE
54
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Perrigo board of directors in years:

2.3
Average Tenure
60
Average Age
  • The average tenure for the Perrigo board of directors is less than 3 years, this suggests a new board.
Board of Directors

Murray Kessler

TITLE
CEO, President & Director
COMPENSATION
$5M
AGE
58
TENURE
0.7 yrs

Donal O'Connor

TITLE
Independent Director
COMPENSATION
$400K
AGE
67
TENURE
4.6 yrs

Jeff Smith

TITLE
Independent Director
COMPENSATION
$391K
AGE
46
TENURE
2.3 yrs

Jeff Kindler

TITLE
Independent Director
COMPENSATION
$400K
AGE
62
TENURE
2.3 yrs

Geoff Parker

TITLE
Independent Director
COMPENSATION
$388K
AGE
53
TENURE
2.6 yrs

Ted Samuels

TITLE
Independent Director
COMPENSATION
$388K
AGE
63
TENURE
2.4 yrs

Brad Alford

TITLE
Independent Director
COMPENSATION
$388K
AGE
61
TENURE
2.3 yrs

Rolf Classon

TITLE
Independent Director
COMPENSATION
$503K
AGE
73
TENURE
2.1 yrs

Andi Karaboutis

TITLE
Independent Director
COMPENSATION
$383K
AGE
55
TENURE
2.1 yrs

Erica Mann

TITLE
Independent Director
AGE
59
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Nov 18 Buy Theodore Samuels Individual 13. Nov 18 13. Nov 18 3,500 $65.40 $228,902
13. Nov 18 Buy Geoffrey Parker Individual 12. Nov 18 12. Nov 18 3,000 $65.35 $196,058
09. Nov 18 Buy Svend Andersen Individual 09. Nov 18 09. Nov 18 3,900 $63.01 $245,739
09. Nov 18 Buy Todd Kingma Individual 09. Nov 18 09. Nov 18 3,200 $63.99 $204,768
09. Nov 18 Buy Murray Kessler Individual 09. Nov 18 09. Nov 18 15,683 $63.89 $1,000,373
16. Aug 18 Buy Svend Andersen Individual 14. Aug 18 14. Aug 18 7,200 $69.43 $499,896
X
Management checks
We assess Perrigo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Perrigo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PRGO News

Simply Wall St News

Is Perrigo Company plc (NYSE:PRGO) A Smart Choice For Dividend Investors?

Could Perrigo Company plc (NYSE:PRGO) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. While Perrigo's 1.9% dividend yield is not the highest, we think its lengthy payment history is quite interesting. The company also bought back stock equivalent to around 4.8% of market capitalisation this year. Some simple analysis can reduce the risk of holding Perrigo for its dividend, and we'll focus on the most important aspects below. Click the interactive chart for our full dividend analysis NYSE:PRGO Historical Dividend Yield, June 6th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Perrigo paid out 91% of its profit as dividends, over the trailing twelve month period. With a payout ratio this high, we'd say its dividend is not well covered by earnings. This may be fine if earnings are growing, but it might not take much of a downturn for the dividend to come under pressure. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Perrigo paid out a conservative 28% of its free cash flow as dividends last year. While the dividend was not well covered by profits, at least they were covered by free cash flow. Even so, if the company were to continue paying out almost all of its profits, we'd be concerned about whether the dividend is sustainable in a downturn. Is Perrigo's Balance Sheet Risky? As Perrigo's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … For the purpose of this article, we only scrutinise the last decade of Perrigo's dividend payments. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's not great to see that Perrigo's have fallen at approximately 21% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is Perrigo Company plc's (NYSE:PRGO) High P/E Ratio A Problem For Investors?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Perrigo: P/E of 59.31 = $49.55 ÷ $0.84 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.

Simply Wall St -

Read This Before Judging Perrigo Company plc's (NYSE:PRGO) ROE

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Perrigo Company plc (NYSE:PRGO). … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.023. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is There An Opportunity With Perrigo Company plc's (NYSE:PRGO) 44% Undervaluation?

How far off is Perrigo Company plc (NYSE:PRGO) from its intrinsic value? … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.

Simply Wall St -

Have Insiders Been Buying Perrigo Company plc (NYSE:PRGO) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Perrigo Company plc (NYSE:PRGO). … The Last 12 Months Of Insider Transactions At Perrigo. … In the last twelve months there was more buying than selling by Perrigo insiders

Simply Wall St -

The Perrigo (NYSE:PRGO) Share Price Is Down 72% So Some Shareholders Are Rather Upset

Imagine if you held Perrigo Company plc (NYSE:PRGO) for half a decade as the share price tanked 72%. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.

Simply Wall St -

Perrigo Company plc (NYSE:PRGO): Ex-Dividend Is In 3 Days

If you are interested in cashing in on Perrigo Company plc's (NYSE:PRGO) upcoming dividend of US$0.19 per share, you only have 3 days left to buy the shares before its ex-dividend date, 28 February 2019, in time for dividends payable on the 19 March 2019. … Below, I will explain how holding Perrigo can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Are Perrigo Company plc's (NYSE:PRGO) Interest Costs Too High?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Perrigo Company plc (NYSE:PRGO), with a market cap of US$6.4b, often get neglected by retail investors. … This article will examine PRGO’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … View our latest analysis for Perrigo

Simply Wall St -

A Closer Look At Perrigo Company plc's (NYSE:PRGO) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.022. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why We Think Perrigo Company plc (NYSE:PRGO) Could Be Worth Looking At

Perrigo Company plc (NYSE:PRGO) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

PRGO Company Info

Description

Perrigo Company plc, a healthcare company, manufactures and supplies over-the-counter (OTC) healthcare products, infant formulas, branded OTC products, and generic pharmaceutical products. The company operates through Consumer Healthcare Americas, Consumer Healthcare International, and Prescription Pharmaceuticals segments. It offers OTC products in cough, cold, allergy, sinus, analgesic, gastrointestinal, smoking cessation, infant formula and food, animal health, diagnostic, lifestyle, personal care and derma-therapeutics, natural health and vitamins, minerals and dietary supplements, feminine hygiene, diabetes care, scar management, and anti-parasite categories under the Good Sense, Sergeant's, Sentry, Zephrex D, PetArmor, and ScarAway brand names. The company also develops, manufactures, and markets a portfolio of generic prescription drugs, such as creams, ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquids, suspensions, solutions, powders, controlled substances, injectable, hormones, oral solid dosage forms, and oral liquid formulations. In addition, it offers contract manufacturing services. The company offers its products through retail drug, supermarket, and mass merchandise chains; hospitals; pharmacies; wholesalers; drug and grocery stores; and para pharmacies, as well as through a network of pharmacy sales force. It operates in Europe, Australia, Israel, Mexico, the United States, Canada, and China. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

Details
Name: Perrigo Company plc
PRGO
Exchange: NYSE
Founded: 1887
$6,187,604,832
135,991,315
Website: http://www.perrigo.com
Address: Perrigo Company plc
The Sharp Building,
Hogan Place,
Dublin,
Co. Dublin, 2,
Ireland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PRGO Ordinary Shares New York Stock Exchange US USD 17. Dec 1991
DB PIG Ordinary Shares Deutsche Boerse AG DE EUR 17. Dec 1991
LSE 0Y5E Ordinary Shares London Stock Exchange GB USD 17. Dec 1991
TASE PRGO Ordinary Shares The Tel-Aviv Stock Exchange IL ILS 17. Dec 1991
Number of employees
Current staff
Staff numbers
10,600
Perrigo employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 01:07
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/20
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.