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Prestige Consumer Healthcare (PBH)
NYSE:PBH
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Prestige Consumer Healthcare (PBH) AI Stock Analysis

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PBH

Prestige Consumer Healthcare

(NYSE:PBH)

Rating:65Neutral
Price Target:
$70.00
▲(2.88% Upside)
Prestige Consumer Healthcare's overall score reflects a mix of solid financial performance and strategic initiatives, tempered by current technical weaknesses and supply chain challenges. The acquisition of Pillar5 Pharma is a positive step towards addressing these issues, but the stock's technical indicators suggest caution in the short term.
Positive Factors
Brand-building and strategic growth
Management's overall strategy around brand-building and utilizing disciplined M&A to grow the business can continue to drive strong FCF and shareholder returns despite the near-term topline headwinds from the eye care business.
Debt reduction and capital allocation
Strong free cash flow enabled further debt reduction and share repurchases.
Partnerships and acquisitions
PBH has further diversified its eye care manufacturing with new third-party partnerships and the acquisition of one of its partner's facility in Canada for $100M, which is expected to help the business start to recover.
Negative Factors
Financial guidance and expectations
The company lowered its financial guidance for the year due to ongoing eye care constraints, impacting expectations.
Sales performance
A sales shortfall, caused by an inability to source enough eye care product (Clear Eyes) to meet retailer and consumer demand, was a suboptimal way to start the fiscal year.
Supply constraints
PBH reported lower-than-expected sales and earnings due to supply constraints in the eye care business, leading to a weaker performance in North America.

Prestige Consumer Healthcare (PBH) vs. SPDR S&P 500 ETF (SPY)

Prestige Consumer Healthcare Business Overview & Revenue Model

Company DescriptionPrestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.
How the Company Makes MoneyPBH generates revenue primarily through the sale of its branded OTC healthcare products in both retail and e-commerce channels. The company leverages its established brand portfolio and extensive distribution network to reach consumers effectively. Key revenue streams include direct sales to major retail chains, pharmacies, and online platforms. Additionally, PBH benefits from partnerships with various retailers for promotional activities and shelf space, which enhance product visibility and sales. The company also invests in marketing and innovation to develop new products and improve existing ones, driving further revenue growth.

Prestige Consumer Healthcare Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Negative
The earnings call presented a mixed sentiment. While the company achieved significant gross margin expansion, record free cash flow, and international growth, it also faced substantial challenges with revenue decline, eye care supply chain issues, and retail order volatility. The overall sentiment leans towards negative due to the significant impact of these challenges on short-term performance and guidance.
Q1-2026 Updates
Positive Updates
Gross Margin Expansion
Gross margin expanded by 150 basis points to 56.2%, thanks to ongoing cost savings efforts.
Record Free Cash Flow
Quarterly free cash flow was a record $78 million, enabling capital deployment to enhance shareholder value.
Strong International Segment Growth
International segment revenues increased 7.1% versus the prior year, with broad-based growth by brand and geography.
Share Repurchase Activity
Repurchased over 400,000 shares in Q1, maintaining leverage ratio of approximately 2.4x.
EPS Growth
EPS increased approximately 6% versus the adjusted prior year, due to gross margin expansion and lower interest expense.
Negative Updates
Revenue Decline
Q1 revenue of $249.5 million declined 6.6% from $267.1 million in the prior year.
Eye Care Supply Chain Issues
Production shutdown in eye care resulted in a significant shortfall for Clear Eyes, impacting Q1 sales and expectations for the first half of fiscal '26.
Retail Order Volatility
Increased order volatility from retailers in July, which is expected to impact Q2 results.
Lowered Revenue Guidance
Revised fiscal '26 revenue guidance to $1.1 billion to $1.115 billion, down approximately 1.5% to 3% versus last year.
Company Guidance
During the Q1 2026 earnings call, Prestige Consumer Healthcare, Inc. provided guidance highlighting several key financial metrics. The company reported Q1 sales of approximately $250 million, falling short of their forecasted range of $258 million to $260 million, mainly due to a prolonged production shutdown affecting the Clear Eyes brand. Despite this shortfall, the company achieved a gross margin expansion of 150 basis points to 56.2% and delivered an EPS of $0.95, up roughly 6% from the prior year, attributed to gross margin improvements and lower interest expenses. They recorded a quarterly record free cash flow of $78 million and maintained a leverage ratio of approximately 2.4x. Looking forward, Prestige anticipates FY 2026 revenues between $1.1 billion and $1.115 billion, with an adjusted EPS of $4.50 to $4.58. They expect significant improvements in Clear Eyes supply in the second half of FY 2026 and project a free cash flow of $245 million or more for the year.

Prestige Consumer Healthcare Financial Statement Overview

Summary
Prestige Consumer Healthcare demonstrates solid financial health across income, balance sheet, and cash flow metrics. The company shows consistent revenue growth and strong profitability margins, while maintaining a low leverage position. Cash flow generation is stable, supporting operational and financial flexibility. Overall, the company's financial statements reflect a well-managed business with potential for continued growth and profitability.
Income Statement
75
Positive
Prestige Consumer Healthcare has shown consistent revenue growth, with a 1.1% increase from 2024 to 2025. The gross profit margin remains strong at 55.8% in 2025, reflecting effective cost management. However, the EBIT margin slightly decreased from 30.4% in 2024 to 29.6% in 2025, indicating some pressure on operational efficiency. The net profit margin improved slightly to 18.9% in 2025, highlighting enhanced profitability.
Balance Sheet
70
Positive
The company's financial stability is solid with a low debt-to-equity ratio of 0.03 in 2025, demonstrating effective debt management. The equity ratio is strong at 53.9%, indicating a healthy proportion of equity financing. Return on equity stands at 11.7%, showing reasonable profitability for shareholders. The improvement in equity and reduction in total liabilities over the years reflect a strengthening balance sheet.
Cash Flow
80
Positive
Operating cash flow increased slightly to $251.5 million in 2025, supporting ongoing operations effectively. Free cash flow growth is modest at 1.6% year-over-year, but the free cash flow to net income ratio is robust at 1.13, indicating strong cash generation relative to profits. The stable cash flow trends suggest efficient cash management and operational stability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.12B1.14B1.13B1.13B1.09B943.37M
Gross Profit629.29M634.46M624.45M625.29M620.65M547.47M
EBITDA359.60M361.99M373.86M14.19M351.61M310.38M
Net Income213.00M214.60M209.34M-82.31M205.38M164.68M
Balance Sheet
Total Assets3.43B3.40B3.32B3.35B3.67B3.43B
Cash, Cash Equivalents and Short-Term Investments139.50M97.88M46.47M58.49M27.18M32.30M
Total Debt1.04B1.04B1.14B1.37B1.51B1.51B
Total Liabilities1.58B1.57B1.66B1.91B2.09B2.07B
Stockholders Equity1.86B1.83B1.66B1.45B1.58B1.36B
Cash Flow
Free Cash Flow267.84M243.29M239.38M221.93M250.28M213.36M
Operating Cash Flow275.75M251.51M248.93M229.72M259.92M235.61M
Investing Cash Flow-17.26M-17.45M-20.11M-11.58M-256.51M-22.24M
Financing Cash Flow-152.84M-182.07M-241.01M-185.85M-7.57M-279.42M

Prestige Consumer Healthcare Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price68.04
Price Trends
50DMA
73.68
Negative
100DMA
78.73
Negative
200DMA
80.45
Negative
Market Momentum
MACD
-2.03
Negative
RSI
45.30
Neutral
STOCH
91.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PBH, the sentiment is Neutral. The current price of 68.04 is above the 20-day moving average (MA) of 67.18, below the 50-day MA of 73.68, and below the 200-day MA of 80.45, indicating a neutral trend. The MACD of -2.03 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 91.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PBH.

Prestige Consumer Healthcare Risk Analysis

Prestige Consumer Healthcare disclosed 25 risk factors in its most recent earnings report. Prestige Consumer Healthcare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Prestige Consumer Healthcare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
-0.85%-23.40%
70
Outperform
$8.44B22.3711.18%2.29%14.98%
65
Neutral
$3.35B15.9612.05%0.63%4.23%
59
Neutral
$35.53B23.18-43.80%1.36%-1.94%85.70%
51
Neutral
$7.85B-0.18-40.01%2.28%22.97%-2.05%
47
Neutral
$1.67B-97.70%
43
Neutral
$378.50M-144.11%-17.10%-2720.40%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PBH
Prestige Consumer Healthcare
68.04
-6.05
-8.17%
CAH
Cardinal Health
148.78
35.89
31.79%
HSIC
Henry Schein
69.58
-0.88
-1.25%
OMI
Owens & Minor
4.90
-10.47
-68.12%
PDCO
Patterson Companies
31.33
9.29
42.15%
GRDN
Guardian Pharmacy Services, Inc. Class A
26.42
8.67
48.85%

Prestige Consumer Healthcare Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Prestige Consumer Healthcare Acquires Pillar5 Pharma for Expansion
Positive
Aug 7, 2025

On August 4, 2025, Prestige Consumer Healthcare Inc. announced a definitive agreement to acquire Pillar5 Pharma Inc., a leading Canadian sterile ophthalmic manufacturer and current supplier of Clear Eyes, from ANJAC SAS for CAD 150 million. This acquisition is part of Prestige’s strategy to expand eye care production capacity and address supply chain challenges, with the transaction expected to close in the third quarter of fiscal 2026. The company also reported a decline in first-quarter fiscal 2026 revenue to $249.5 million due to supply constraints in the eye care category, although international segment growth and improved gross margins were noted. The acquisition of Pillar5 is anticipated to secure long-term supply chain capacity and support Prestige’s growth opportunities, despite a revised revenue outlook for fiscal 2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025