NYSE:PRGO

Stock Analysis Report

Executive Summary

Perrigo Company plc, a healthcare company, manufactures and supplies over-the-counter (OTC) healthcare products, infant formulas, branded OTC products, and generic pharmaceutical products.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Perrigo's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

PRGO

-0.06%

US Pharmaceuticals

0.4%

US Market


1 Year Return

-25.0%

PRGO

-8.0%

US Pharmaceuticals

6.9%

US Market

Return vs Industry: PRGO underperformed the US Pharmaceuticals industry which returned -8% over the past year.

Return vs Market: PRGO underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

PRGOIndustryMarket
7 Day0.9%-0.06%0.4%
30 Day-2.4%-0.9%-1.1%
90 Day3.1%-1.7%-0.5%
1 Year-23.8%-25.0%-5.8%-8.0%9.3%6.9%
3 Year-38.3%-40.3%18.3%10.0%45.8%36.4%
5 Year-63.8%-65.3%22.1%9.2%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Perrigo undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PRGO ($53.9) is trading below our estimate of fair value ($135.73)

Significantly Undervalued: PRGO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRGO is poor value based on its PE Ratio (84.4x) compared to the Pharmaceuticals industry average (16x).

PE vs Market: PRGO is poor value based on its PE Ratio (84.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: PRGO is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: PRGO is good value based on its PB Ratio (1.3x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is Perrigo forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRGO's forecast earnings growth (26.8% per year) is above the savings rate (2.7%).

Earnings vs Market: PRGO's earnings (26.8% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PRGO's revenue (2.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PRGO's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PRGO's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Perrigo performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PRGO's earnings have declined by -6.3% per year over the past 5 years.

Accelerating Growth: PRGO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PRGO had negative earnings growth (-62.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (24.3%).


Return on Equity

High ROE: PRGO's Return on Equity (1.5%) is considered low.


Return on Assets

ROA vs Industry: PRGO's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: PRGO has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Perrigo's financial position?


Financial Position Analysis

Short Term Liabilities: PRGO's short term assets ($3.4B) exceeds its short term liabilities ($1.8B)

Long Term Liabilities: PRGO's short term assets (3.4B) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: PRGO's debt to equity ratio (60.6%) is considered high

Reducing Debt: PRGO's debt to equity ratio has increased from 37% to 60.6% over the past 5 years.

Debt Coverage: PRGO's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: PRGO's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: PRGO has a low level of unsold assets or inventory.

Debt Coverage by Assets: PRGO's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PRGO's dividend (1.56%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PRGO's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: PRGO's dividends per share have been stable in the past 10 years.

Growing Dividend: PRGO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (122.1%), PRGO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRGO's dividends in 3 years are forecast to be well covered by earnings (16.9% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Murray Kessler (59yo)

1yrs

Tenure

US$5,026,434

Compensation

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 prod ...


CEO Compensation Analysis

Compensation vs. Market: Murray has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Murray's compensation with company performance.


Management Age and Tenure

4.0yrs

Average Tenure

59yo

Average Age

Experienced Management: PRGO's management team is considered experienced (4 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

62yo

Average Age

Experienced Board: PRGO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: PRGO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$39,67423 Aug 19
Ronald Winowiecki
EntityIndividual
Shares826
Max PriceUS$48.03
SellUS$142,758,47316 Aug 19
Starboard Value LP
EntityCompany
Shares3,043,128
Max PriceUS$47.75
BuyUS$187,89313 Aug 19
Theodore Samuels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$46.97
BuyUS$228,90214 Nov 18
Theodore Samuels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$65.40
BuyUS$196,05813 Nov 18
Geoffrey Parker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$65.35
BuyUS$245,73909 Nov 18
Svend Andersen
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Consumer Healthcare International
Shares3,900
Max PriceUS$63.01
BuyUS$204,76809 Nov 18
Todd Kingma
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,200
Max PriceUS$63.99
BuyUS$1,000,37309 Nov 18
Murray Kessler
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares15,683
Max PriceUS$63.89

Ownership Breakdown


Management Team

  • Murray Kessler (59yo)

    CEO, President & Director

    • Tenure: 1yrs
    • Compensation: US$5.03m
  • Ray Silcock (68yo)

    CFO, Principal Accounting Officer & Executive VP

    • Tenure: 0.6yrs
  • Todd Kingma (59yo)

    Executive VP

    • Tenure: 16.2yrs
    • Compensation: US$2.77m
  • Svend Andersen (57yo)

    Executive VP & President of Consumer Healthcare International

    • Tenure: 2.7yrs
    • Compensation: US$2.45m
  • Jim Dillard (55yo)

    Executive VP & Chief Scientific Officer

    • Tenure: 0.8yrs
  • Tom Farrington (62yo)

    Chief Information Officer & Executive VP

    • Tenure: 13yrs
  • Jeff Needham (63yo)

    Executive VP & President of Consumer Healthcare Americas

    • Tenure: 10yrs
    • Compensation: US$3.26m
  • Shannon Hukill

    Senior Director of Technical Operations

    • Tenure: 8.1yrs
  • Ron Janish (53yo)

    Executive Vice President of Global Operations & Supply Chain

    • Tenure: 4yrs
  • Bradley Joseph

    Vice President of Global Investor Relations & Corporate Communications

    • Tenure: 0yrs

Board Members

  • Jeff Kindler (63yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$400.00k
  • Murray Kessler (59yo)

    CEO, President & Director

    • Tenure: 1yrs
    • Compensation: US$5.03m
  • Rolf Classon (74yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$502.99k
  • Donal O'Connor (68yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$400.00k
  • Brad Alford (62yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$387.50k
  • Ted Samuels (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$387.50k
  • Geoff Parker (54yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$387.50k
  • Erica Mann (60yo)

    Independent Director

    • Tenure: 0.5yrs
  • Andi Karaboutis (56yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$383.00k

Company Information

Perrigo Company plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perrigo Company plc
  • Ticker: PRGO
  • Exchange: NYSE
  • Founded: 1887
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$7.333b
  • Shares outstanding: 136.05m
  • Website: https://www.perrigo.com

Number of Employees


Location

  • Perrigo Company plc
  • The Sharp Building
  • Hogan Place
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRGOTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSDec 1991
PRGONYSE (New York Stock Exchange)YesOrdinary SharesUSUSDDec 1991
PIGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1991
0Y5ELSE (London Stock Exchange)YesOrdinary SharesGBUSDDec 1991

Biography

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 oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:27
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2018/12/31


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.