Perrigo Company (PRGO)
NYSE:PRGO
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Perrigo Company
(NYSE:PRGO)
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Rating:52Neutral
Price Target:
$12.00
▲(1.69% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak financial performance (large TTM losses, declining revenue, and leverage pressure). Offsetting factors include still-positive (though slowing) cash generation, modestly improving near-term technical momentum, and constructive updates from the earnings call and financing actions that support liquidity and debt reduction.
Positive Factors
Store-brand OTC market share gains
Sustained volume share gains in U.S. private-label OTC indicate durable commercial strength in Perrigo’s core manufacturing and retailer relationships. Higher household penetration is scalable (management notes ~ $100M retail per 1pt U.S. penetration), supporting a structural recovery in revenue and channel positioning over the next several quarters.
Negative Factors
Material revenue declines
Sustained top-line contraction across CORE and All‑In sales reflects broad demand weakness, category headwinds and retailer destocking. Persistent organic declines mean the recovery relies on restored end-market consumption and successful new product rollouts, leaving revenue visibility limited over the next several quarters without clear demand improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Store-brand OTC market share gains
Sustained volume share gains in U.S. private-label OTC indicate durable commercial strength in Perrigo’s core manufacturing and retailer relationships. Higher household penetration is scalable (management notes ~ $100M retail per 1pt U.S. penetration), supporting a structural recovery in revenue and channel positioning over the next several quarters.
Read all positive factors
Perrigo Company (PRGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.55B
Dividend Yield8.48%
Average Volume (3M)2.33M
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-3.62%
EPS Growth-932.84%
CountryUS
Employees8,379
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-13.11
Shares Outstanding138,367,770
10 Day Avg. Volume2,487,229
30 Day Avg. Volume2,334,948
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.66
Price to Sales (P/S)0.45
P/FCF Ratio13.29
Enterprise Value/Market Cap3.22
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit3.50
Enterprise Value/Ebitda-5.97
Forecast
1Y Price Target
$16.00Price Target Upside35.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.12
Revenue Forecast (FY)$4.05B
Perrigo Company Business Overview & Revenue Model
Company Description
Perrigo Company plc provides over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to prevent or treat conditions that can be self-managed. The company operates through two segments, Consum...
How the Company Makes Money
Perrigo makes money primarily by selling consumer self-care products to retailers, pharmacies, wholesalers, and distributors. A key revenue stream is private-label OTC products, where Perrigo formulates and manufactures store-brand equivalents tha...
Perrigo Company Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear operational and commercial progress (market share gains, meaningful cost-savings program, completion of a divestiture and reaffirmed guidance) contrasted with material near-term revenue and margin headwinds (notably CORE net sales down ~8.3% YoY, gross/operating margin compression, a $331M goodwill impairment and cash flow pressure). Management emphasized these headwinds are largely transitory and the majority of growth and margin recovery is expected in the second half of 2026, supported by innovation, demand generation and operational improvements.Positive Updates
Market Share Gains — U.S. Store Brand OTC
Significant share improvement in U.S. store brand OTC: company reported a 100 basis point improvement in volume share during the quarter and noted 270 basis points of U.S. store brand OTC volume share gains in Q1; six of seven OTC categories gained share.
Negative Updates
Significant Revenue Declines
CORE net sales declined 8.3% year-over-year (organic CORE net sales decline 11%); All In net sales declined 7.2%, driven primarily by softer Self Care consumption (cough/cold) and retailer inventory destocking.
Read all updates
Q1-2026 Updates
Positive
Negative
Market Share Gains — U.S. Store Brand OTC
Significant share improvement in U.S. store brand OTC: company reported a 100 basis point improvement in volume share during the quarter and noted 270 basis points of U.S. store brand OTC volume share gains in Q1; six of seven OTC categories gained share.
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance and said results will be back‑half weighted (approximately 30–35% of CORE adjusted EPS in H1 and 65–70% in H2); Q1 CORE adjusted EPS was $0.40 and All‑In adjusted EPS $0.43, CORE net sales declined 8.3% (organic down ~11%) and All‑In net sales fell ~7.2%, with key headwinds including ~3.5% weaker cough/cold incidence and ~3 points of retailer destocking and a prior‑year manufacturing volume variance expected to be an unfavorable All‑In EPS impact of ~ $0.60 in 2026 (about $0.26 realized in Q1). Margins were pressured (CORE adjusted gross margin down 160 bps to 39.2%, CORE adjusted operating margin down 110 bps to 12.8%; All‑In gross margin down 340 bps to 37.6%, All‑In operating margin down 240 bps to 11.6%), the operational enhancement program delivered >$7M in Q1 and is on track for $60–80M in 2026 (plus $20–40M in 2027), the Dermacosmetics divestiture generated ~€306M of upfront cash to support debt reduction, a non‑cash goodwill impairment of $331M was recorded, cash was $357M, total debt $3.6B, Q1 cash from operations was an outflow of $114M, CapEx was $14M and dividends returned were $40M, and roughly 60% of the benefit from innovation is expected in the back half of the year.Perrigo Company Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
45
Neutral
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.18B | 4.25B | 4.37B | 4.66B | 4.45B | 4.14B |
| Gross Profit | 1.43B | 1.49B | 1.54B | 1.68B | 1.46B | 1.42B |
| EBITDA | -837.70M | -797.90M | 433.00M | 525.00M | 355.50M | 695.90M |
| Net Income | -1.82B | -1.43B | -171.80M | -12.70M | -140.60M | -68.90M |
Balance Sheet | ||||||
| Total Assets | 7.98B | 8.54B | 9.65B | 10.81B | 11.02B | 10.43B |
| Cash, Cash Equivalents and Short-Term Investments | 357.20M | 531.60M | 558.80M | 751.30M | 600.70M | 1.86B |
| Total Debt | 3.81B | 3.97B | 3.62B | 4.07B | 4.32B | 3.69B |
| Total Liabilities | 5.48B | 5.60B | 5.33B | 6.04B | 6.18B | 5.27B |
| Stockholders Equity | 2.50B | 2.94B | 4.32B | 4.77B | 4.84B | 5.15B |
Cash Flow | ||||||
| Free Cash Flow | 107.70M | 145.10M | 244.60M | 303.80M | 210.90M | 4.20M |
| Operating Cash Flow | 189.40M | 238.50M | 362.90M | 405.50M | 307.30M | 156.30M |
| Investing Cash Flow | -62.10M | -75.40M | 78.80M | -77.50M | -1.96B | 1.28B |
| Financing Cash Flow | -204.00M | -220.50M | -611.00M | -187.20M | 421.60M | -178.70M |
Perrigo Company Technical Analysis
Positive
11.80
Price Trends
10.89
Positive
12.23
Negative
15.20
Negative
Market Momentum
-0.08
Positive
50.06
Neutral
58.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRGO, the sentiment is Positive. The current price of 11.8 is above the 20-day moving average (MA) of 11.32, above the 50-day MA of 10.89, and below the 200-day MA of 15.20, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 58.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRGO.
Perrigo Company Risk Analysis
Perrigo Company disclosed 2 risk factors in its most recent earnings report. Perrigo Company reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Perrigo Company Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.58B | 10.73 | -142.01% | ― | 10.34% | ― | |
63 Neutral | $2.80B | -324.88 | -2.73% | ― | 16.29% | -145.12% | |
61 Neutral | $19.39B | 22.12 | -1.97% | 3.99% | 2.14% | 91.93% | |
61 Neutral | $40.45B | 23.59 | 20.79% | ― | 5.76% | ― | |
60 Neutral | $3.96B | 16.36 | -144.72% | ― | 7.62% | ― | |
52 Neutral | $1.55B | -0.83 | -50.65% | 8.48% | -3.62% | -932.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PRGO
Perrigo Company
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Perrigo Company Corporate Events
Shareholder Meetings
Perrigo Shareholders Endorse Directors, Pay and Capital Flexibility
Positive
May 5, 2026
On April 30, 2026, Perrigo Company plc held its 2026 Annual General Meeting of Shareholders, at which shareholders elected all nominated directors to serve until the 2027 meeting, with each candidate receiving strong majority support. Shareholders...
Business Operations and StrategyFinancial Disclosures
Perrigo Updates Segment Reporting and Profitability Metrics
Neutral
Apr 22, 2026
On February 26, 2026, Perrigo said it has overhauled its segment reporting to align with its product categories rather than geography, effective from the first quarter of 2026. The group now reports Self Care, Specialty Care and Infant Formula as ...
Business Operations and StrategyPrivate Placements and Financing
Perrigo Amends Credit Agreement, Extends Revolving Facility Maturity
Positive
Mar 23, 2026
On March 20, 2026, Perrigo Company entered into an Amended and Restated Credit Agreement with a syndicate of lenders led by JPMorgan, replacing its April 20, 2022 facility and extending the maturity of its $1.0 billion revolving credit facility to...
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.