NYSE:PRGO

Stock Analysis Report

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Executive Summary

Perrigo Company plc manufactures and supplies over-the-counter health and wellness solutions in the United States, Europe, and internationally.

Rewards

Trading at 48.9% below its fair value

Earnings are forecast to grow 11.46% per year

Earnings grew by 65% over the past year

Pays a reliable dividend of 1.66%

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Significant insider selling over the past 3 months



Snowflake Analysis

Proven track record average dividend payer.


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

Stable Share Price: PRGO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

PRGO

-1.8%

US Pharmaceuticals

1.1%

US Market


1 Year Return

21.6%

PRGO

6.6%

US Pharmaceuticals

4.6%

US Market

Return vs Industry: PRGO exceeded the US Pharmaceuticals industry which returned 6.3% over the past year.

Return vs Market: PRGO exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

PRGOIndustryMarket
7 Day-1.4%-1.8%1.1%
30 Day5.5%-2.5%5.5%
90 Day-10.5%1.2%-4.9%
1 Year23.7%21.6%9.4%6.6%7.0%4.6%
3 Year-17.2%-20.1%26.4%17.3%28.6%20.1%
5 Year-70.7%-72.1%22.7%9.3%52.5%35.3%

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?

48.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRGO ($54.28) is trading below our estimate of fair value ($106.24)

Significantly Below Fair Value: 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 (39.2x) compared to the Pharmaceuticals industry average (16.8x).

PE vs Market: PRGO is poor value based on its PE Ratio (39.2x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: PRGO is poor value based on its PEG Ratio (3.4x)


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 (3.2x).


Next Steps

Future Growth

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

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRGO's forecast earnings growth (11.5% per year) is above the savings rate (2.2%).

Earnings vs Market: PRGO's earnings (11.5% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: PRGO's revenue (2% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: PRGO's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRGO's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Perrigo performed over the past 5 years?

27.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRGO has a large one-off loss of $140.9M impacting its March 28 2020 financial results.

Growing Profit Margin: PRGO's current net profit margins (3.8%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: PRGO has become profitable over the past 5 years, growing earnings by 27.4% per year.

Accelerating Growth: PRGO's earnings growth over the past year (65%) exceeds its 5-year average (27.4% per year).

Earnings vs Industry: PRGO earnings growth over the past year (65%) exceeded the Pharmaceuticals industry 14.5%.


Return on Equity

High ROE: PRGO's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Perrigo's financial position?


Financial Position Analysis

Short Term Liabilities: PRGO's short term assets ($3.0B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: PRGO's short term assets ($3.0B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: PRGO's debt to equity ratio (59.5%) is considered high.

Reducing Debt: PRGO's debt to equity ratio has increased from 49.4% to 59.5% over the past 5 years.

Debt Coverage: PRGO's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: PRGO's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRGO's dividend (1.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: PRGO's dividend (1.66%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

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 reasonable payout ratio (61.7%), PRGO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRGO's dividends in 3 years are forecast to be well covered by earnings (21.1% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Murray Kessler (59yo)

1.58yrs

Tenure

US$10,807,772

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's total compensation ($USD10.81M) is above average for companies of similar size in the US market ($USD7.43M).

Compensation vs Earnings: Murray's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Murray Kessler
CEO, President & Director1.58yrsUS$10.81m0.012% $851.6k
Raymond Silcock
CFO, Principal Accounting Officer & Executive VP1.17yrsUS$3.48m0.0019% $141.3k
James Dillard
Executive VP & Chief Scientific Officer1.33yrsUS$2.71m0.0022% $160.6k
Jeffrey Needham
Executive Officer10.58yrsUS$2.51m0.017% $1.3m
Svend Andersen
Executive VP & President of Consumer Healthcare International3.25yrsUS$2.48m0.0082% $607.5k
Ronald Janish
Chief Transformation Officer and Executive Vice President of Global Operations & Supply Chain4.58yrsno data0.0096% $711.8k
Shannon Hukill
Senior Director of Technical Operations8.67yrsno datano data
Thomas Farrington
Chief Information Officer & Executive VP13.58yrsno data0.011% $847.2k
Bradley Joseph
Vice President of Global Investor Relations & Corporate Communicationsno datano datano data
Todd Kingma
Executive VP16.75yrsUS$2.77m0.029% $2.2m

4.6yrs

Average Tenure

59yo

Average Age

Experienced Management: PRGO's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Murray Kessler
CEO, President & Director1.58yrsUS$10.81m0.012% $851.6k
Jeffrey Kindler
Independent Director3.25yrsUS$399.98k0.0058% $432.1k
Rolf Classon
Independent Chairman of the Board2yrsUS$530.44k0.0064% $474.3k
Donal O'Connor
Independent Director5.5yrsUS$399.98k0.0085% $631.9k
Bradley Alford
Independent Director3.25yrsUS$387.48k0.0058% $432.1k
Theodore Samuels
Independent Director3.33yrsUS$388.96k0.020% $1.5m
Geoffrey Parker
Independent Director3.5yrsUS$387.48k0.010% $765.1k
Erica Mann
Independent Director1.08yrsUS$359.55k0.0021% $157.6k
Adriana Karaboutis
Independent Director3yrsUS$384.48k0.0054% $403.3k

3.3yrs

Average Tenure

62yo

Average Age

Experienced Board: PRGO's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$7.399b
  • Shares outstanding: 136.31m
  • 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
PRGO NBMV (Bolsa Mexicana de Valores)Common StockMXMXNDec 1991

Biography

Perrigo Company plc manufactures and supplies over-the-counter health and wellness solutions in the United States, Europe, and internationally. The company operates through Consumer Self-Care Americas, Consumer Self-Care International, and Prescription Pharmaceuticals segments. It provides upper respiratory, pain and sleep-aids, digestive health, nutrition, vitamins, minerals and supplements, healthy lifestyle, skincare and personal hygiene, and oral self-care products under the Prevacid 24HR, Good Sense, Zephrex D, ScarAway, Plackers, Steripod, and Rembrandt 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. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 14:43
End of Day Share Price2020/05/22 00:00
Earnings2020/03/28
Annual Earnings2019/12/31


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.