Perrigo Company (PRGO) AI Stock Analysis

• Market Cap: $3.66B
• Dividend Yield: 4.2%
• Average Volume (3M): 909.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -2.32%
• EPS Growth: 35.46%
• Country: US
• Employees: 8,379
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.57
• Shares Outstanding: 137,477,310
• 10 Day Avg. Volume: 1,020,165
• 30 Day Avg. Volume: 909,568
• PEG Ratio: -0.02
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 14.44
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 4.70
• Enterprise Value/Ebitda: 13.76
• 1Y Price Target: $36.00
• Price Target Upside: 35.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $23.50 ▼(-11.72% Downside)

Perrigo's overall stock score is primarily influenced by its financial performance challenges, including revenue growth and profitability issues. Technical analysis indicates bearish momentum, further impacting the score. However, the earnings call provided some positive insights, such as EPS growth and strategic initiatives, which slightly offset the negative aspects. The valuation score reflects the company's current unprofitability, but the dividend yield offers some investor value.

Positive Factors

Operational Performance

Perrigo has strong gross margins and operational execution, which led to adjusted EBITDA and EPS results that beat Street estimates.

Regulatory Environment

The FDA's Operation Stork Speed initiative to review and update infant formula standards could benefit Perrigo as the playing field is leveled among manufacturers.

Strategic Divestment

Perrigo announces the sale of their dermacosmetics branded business for up to €327M, aligning with their focus on core business operations.

Negative Factors

Revenue Impact

The sale of the dermacosmetics business, which had significant sales and operating income, could impact Perrigo's revenue streams.

Sales Decline

Sales were down due to exiting lower-margin businesses, divestments, and currency headwinds.

Perrigo Company Business Overview & Revenue Model

Company Description

Perrigo Company plc (PRGO) is a leading global provider of over-the-counter (OTC) health and wellness solutions, primarily focused on self-care products. The company operates in the consumer healthcare sector, offering a diverse range of products, including OTC medications, nutritional supplements, and personal care products. Perrigo's core offerings are primarily distributed through major retailers and pharmacies across the globe, making its products widely accessible to consumers seeking reliable and affordable health solutions.

How the Company Makes Money

Perrigo Company generates revenue through the manufacture and sale of branded and private label OTC health and wellness products. The company's key revenue streams include sales of allergy medications, pain relievers, digestive health products, and dietary supplements. Perrigo leverages its strong relationships with retailers and pharmacies to ensure broad distribution of its products. Additionally, the company benefits from economies of scale and extensive R&D capabilities to maintain product affordability and innovation. Strategic acquisitions and partnerships also play a significant role in expanding Perrigo's market presence and product portfolio, further contributing to its earnings.

Perrigo Company Financial Statement Overview

Summary

Perrigo Company faces challenges in revenue growth and profitability, as evidenced by declining sales and persistent net losses. The balance sheet is relatively stable, with moderate leverage, but profitability concerns remain. Cash flow is weakening, posing potential liquidity risks. The company needs to address these issues to improve financial health.

Income Statement

The company shows a declining revenue trend over the years, with a TTM revenue of $4.34 billion compared to $5.06 billion in 2020, indicating potential challenges in maintaining sales growth. Gross profit margin for TTM is 36.4%, showing moderate profitability. However, the net profit margin is negative, at -4.1%, due to persistent net losses, which is a concern. EBIT and EBITDA margins for TTM are 7.1% and 10.8% respectively, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio is 0.83 in the TTM period, indicating a moderate level of leverage. The equity ratio is 44.7%, showing a reasonable proportion of assets financed by equity. Return on equity is negative due to losses, highlighting profitability challenges. Overall, the balance sheet reflects a stable capital structure, but ongoing losses pose risks.

Cash Flow

The free cash flow has decreased from $465.8 million in 2020 to $181.1 million in the TTM period, showing a deteriorating trend. The operating cash flow to net income ratio is positive, indicating that the company generates cash despite net losses. However, the decline in free cash flow and consistent net income deficits suggest potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.33B	4.37B	4.66B	4.45B	4.14B	5.06B
Gross Profit	1.55B	1.54B	1.68B	1.46B	1.42B	1.82B
EBITDA	527.70M	433.00M	525.00M	507.20M	915.60M	661.90M
Net Income	-80.30M	-171.80M	-12.70M	-130.90M	-130.90M	-162.60M
Balance Sheet
Total Assets	10.09B	9.65B	10.81B	11.02B	10.43B	11.49B
Cash, Cash Equivalents and Short-Term Investments	454.20M	558.80M	751.30M	600.70M	1.86B	641.50M
Total Debt	36.40M	3.62B	4.07B	4.11B	3.52B	3.57B
Total Liabilities	5.62B	5.33B	6.04B	6.18B	5.27B	5.83B
Stockholders Equity	4.47B	4.32B	4.77B	4.84B	5.15B	5.66B
Cash Flow
Free Cash Flow	256.70M	244.60M	303.80M	210.90M	4.20M	465.80M
Operating Cash Flow	366.20M	362.90M	405.50M	307.30M	156.30M	636.20M
Investing Cash Flow	146.10M	78.80M	-77.50M	-1.96B	1.28B	-187.80M
Financing Cash Flow	-616.60M	-611.00M	-187.20M	421.60M	-178.70M	-181.10M

Perrigo Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.62
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRGO, the sentiment is Neutral. The current price of 26.62 is below the 20-day moving average (MA) of 27.37, below the 50-day MA of 26.98, and above the 200-day MA of 25.99, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRGO.

Perrigo Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	73 Outperform	$2.10B	33.98	6.32%	―	11.82%	―
ANIP	70 Outperform	$1.43B	―	-5.19%	―	30.26%	-173.36%
AMRX	58 Neutral	$2.55B	1,195.59	106.97%	―	13.42%	92.50%
VTRS	52 Neutral	$0.00	―	-21.25%	5.45%	-6.88%	-6809.78%
Sector *	51 Neutral	$7.39B	0.81	-66.42%	2.36%	16.64%	-0.07%
PRGO	51 Neutral	$3.66B	―	-1.32%	4.20%	-2.32%	35.46%
TEVA	51 Neutral	$18.16B	―	-2.31%	―	2.43%	64.37%

Perrigo Company Corporate Events

Perrigo Sells Dermacosmetics Business for €327 Million

On July 13, 2025, Perrigo Company entered into an agreement to sell its Dermacosmetics branded business to Kairos Bidco AB for up to €327 million. This transaction, expected to close in the first quarter of 2026, is part of Perrigo’s strategy to streamline its portfolio and focus on high-growth brands, with proceeds directed towards strengthening its balance sheet.

The most recent analyst rating on (PRGO) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Perrigo Company stock, see the PRGO Stock Forecast page.

Perrigo Announces Leadership Change Amid Strategic Update

On June 25, 2025, Perrigo Company announced the mutual separation with Catherine ‘Triona’ Schmelter, EVP & President, Consumer Self-Care Americas, due to the elimination of her position effective June 30, 2025. This change is part of Perrigo’s strategic organizational update to scale and optimize its global category-led, market activation growth model, aimed at enhancing agility and driving long-term sustainable growth. Roberto Khoury has been appointed to a new position to lead global market activation, aligning with Perrigo’s multi-year plan to stabilize, streamline, and strengthen its operations. The alignment reflects operational readiness and is expected to unlock the full potential of Perrigo’s portfolio, with no impact on the company’s financial guidance for 2025.

The most recent analyst rating on (PRGO) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Perrigo Company stock, see the PRGO Stock Forecast page.

Perrigo Appoints New EVP of Global Operations

On June 2, 2025, Perrigo Company announced the planned retirement of Ronald Janish, Executive Vice President of Global Operations and Supply Chain, effective June 23, 2025. Mr. Janish will continue in an advisory role until September 30, 2025, and will receive a severance package upon his departure. On June 4, 2025, Perrigo appointed Matt Winterman as the new Executive Vice President of Global Operations and Supply Chain, effective June 23, 2025. Mr. Winterman, with over 20 years of experience in global supply chain and strategy leadership, previously held senior positions at AstraZeneca, Roche Holding AG, and GSK plc. His appointment is expected to advance Perrigo’s manufacturing and supply chain capabilities, supporting the company’s long-term consumer self-care strategy.

The most recent analyst rating on (PRGO) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Perrigo Company stock, see the PRGO Stock Forecast page.