Perrigo Company (PRGO)
NYSE:PRGO
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Perrigo Company
(NYSE:PRGO)
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Rating:48Neutral
Price Target:
$10.50
▼(-3.31% Downside)
Action:ReiteratedDate:03/24/26
PRGO scores weak-to-midrange primarily due to deteriorating profitability and declining revenue trends, despite positive cash generation and reduced balance-sheet leverage. Technicals are strongly bearish with the stock trading below key moving averages and negative momentum indicators. Guidance suggests a challenging 2026 transition year with notable near-term EPS headwinds and impairment risk, while the very high dividend yield and extended revolver maturity provide partial support.
Positive Factors
Private-label & diversified revenue streams
Perrigo’s core business of manufacturing private-label and branded OTC products for retailers provides durable contracted volumes and recurring revenue. Geographic diversification across North America and Europe reduces single-market risk and supports steadier cash generation versus mono‑market exposure.
Negative Factors
Declining revenue & sharply weakened profitability
Sustained revenue declines (noted ~6% in 2024 and ~3% in 2025) combined with a deep 2025 operating loss and very negative net margins damage earnings power. Persistently weak top line and poor bottom-line conversion erode returns on equity and constrain reinvestment capacity long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Private-label & diversified revenue streams
Perrigo’s core business of manufacturing private-label and branded OTC products for retailers provides durable contracted volumes and recurring revenue. Geographic diversification across North America and Europe reduces single-market risk and supports steadier cash generation versus mono‑market exposure.
Read all positive factors
Perrigo Company (PRGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.49B
Dividend Yield8.48%
Average Volume (3M)4.11M
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth-2.55%
EPS Growth66.00%
CountryUS
Employees8,379
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.77
Shares Outstanding137,649,350
10 Day Avg. Volume3,644,951
30 Day Avg. Volume4,107,354
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 Cap3.30
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit3.30
Enterprise Value/Ebitda-5.96
Forecast
1Y Price Target
$16.00Price Target Upside47.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.28
Revenue Forecast (FY)$4.13B
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call presented a mix of meaningful operational progress and clear near-term headwinds. Positive execution items include share gains, $320M of realized operational benefits, a tripled innovation pipeline, margin expansion over recent years, and a targeted operational savings program. Offsetting these are substantial legacy and cyclical challenges: a large $1.3B goodwill impairment (with potential additional charges), significant Infant Formula revenue declines and inventory/working capital pressure, market softness in OTC (notably cough/cold), and a near-term EPS hit (~$0.60) from underabsorption. Management frames 2026 as a transition year with confidence in a second-half recovery and 2027 improvement, but the near-term guidance and noncash impairments temper the outlook.Positive Updates
Full-Year CORE and All-In EPS & Operating Income Improvement
Full year All-In operating income grew 2% and All-In EPS improved 7%, finishing at $2.75. CORE Perrigo operating income increased 7% year-over-year and CORE EPS rose 14% versus prior year (CORE 2025 baseline EPS $2.52).
Negative Updates
Infant Formula Revenue Declines and Dilutive Impact
All-In net sales declines in Infant Formula of roughly 25% in the quarter and ~10% for the full year; fourth quarter All-In operating income declined $29 million, including a negative $21 million impact from Infant Formula. Management expects Infant Formula to remain a headwind and is under strategic review.
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Q4-2025 Updates
Positive
Negative
Full-Year CORE and All-In EPS & Operating Income Improvement
Full year All-In operating income grew 2% and All-In EPS improved 7%, finishing at $2.75. CORE Perrigo operating income increased 7% year-over-year and CORE EPS rose 14% versus prior year (CORE 2025 baseline EPS $2.52).
Read all positive updates
Company Guidance
Management's 2026 guidance for CORE Perrigo calls for organic net sales of -3.5% to +0.5%, CORE EPS of $2.25–$2.55 (versus a 2025 CORE baseline of $2.52), CORE gross margin of 39–40% and CORE operating margin of 15–16%, with a temporary under‑absorption EPS headwind of ~ $0.60 and CORE EPS phasing ~30–35% in H1 and ~65–70% in H2; on an All‑In basis (assuming Dermacosmetics divestiture in Q2) they expect net sales -5.5% to -1.5%, gross margin 36.5–37.5%, operating margin 12.5–13.5% and EPS $2.00–$2.30. To offset headwinds they are launching a 2‑year operational enhancement program (≈7% workforce reduction) targeting annualized pretax savings of $80–$100M (≈80% realized in 2026) with implementation costs of $80–$90M; operating cash‑flow conversion is expected in the mid‑60% range and net leverage to finish 2026 roughly in line with or slightly better than 2025 (4.0x at year‑end 2025). They also flagged potential additional Q1 2026 goodwill impairments up to $350M (after a $1.3B 2025 impairment) and reminded investors Project Energize/supply‑chain initiatives delivered about $320M of benefits in 2025.Perrigo Company Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
55
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.25B | 4.37B | 4.66B | 4.45B | 4.14B |
| Gross Profit | 1.49B | 1.54B | 1.68B | 1.46B | 1.42B |
| EBITDA | -797.90M | 433.00M | 525.00M | 355.50M | 695.90M |
| Net Income | -1.43B | -171.80M | -12.70M | -140.60M | -68.90M |
Balance Sheet | |||||
| Total Assets | 8.54B | 9.65B | 10.81B | 11.02B | 10.43B |
| Cash, Cash Equivalents and Short-Term Investments | 531.60M | 558.80M | 751.30M | 600.70M | 1.86B |
| Total Debt | 3.97B | 3.62B | 4.07B | 4.32B | 3.69B |
| Total Liabilities | 5.60B | 5.33B | 6.04B | 6.18B | 5.27B |
| Stockholders Equity | 2.94B | 4.32B | 4.77B | 4.84B | 5.15B |
Cash Flow | |||||
| Free Cash Flow | 145.10M | 244.60M | 303.80M | 210.90M | 4.20M |
| Operating Cash Flow | 238.50M | 362.90M | 405.50M | 307.30M | 156.30M |
| Investing Cash Flow | -75.40M | 78.80M | -77.50M | -1.96B | 1.28B |
| Financing Cash Flow | -220.50M | -611.00M | -187.20M | 421.60M | -178.70M |
Perrigo Company Technical Analysis
Neutral
10.86
Price Trends
11.94
Negative
12.71
Negative
17.40
Negative
Market Momentum
-0.27
Negative
48.06
Neutral
66.35
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 10.86 is above the 20-day moving average (MA) of 10.01, below the 50-day MA of 11.94, and below the 200-day MA of 17.40, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 66.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRGO.
Perrigo Company Risk Analysis
Perrigo Company disclosed 46 risk factors in its most recent earnings report. Perrigo Company 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
Perrigo Company Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $36.88B | 25.43 | 20.09% | ― | -0.25% | ― | |
58 Neutral | $3.82B | 21.36 | -98.94% | ― | -0.25% | ― | |
56 Neutral | $15.51B | -4.15 | -22.99% | 3.99% | -6.40% | -320.23% | |
55 Neutral | $2.92B | -72.78 | -3.67% | ― | 4.54% | -130.59% | |
54 Neutral | $3.95B | 54.80 | -67.91% | ― | 9.50% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.49B | ― | -35.16% | 8.48% | -2.55% | 66.00% |
* Healthcare Sector Average
PRGO
Perrigo Company
10.86
-12.52
-53.55%
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Perrigo Company Corporate Events
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.