Perrigo Company (PRGO) AI Stock Analysis

• Market Cap: $3.26B
• Dividend Yield: 4.76%
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -2.32%
• EPS Growth: 35.46%
• Country: US
• Employees: 8,379
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.57
• Shares Outstanding: 137,582,810
• 10 Day Avg. Volume: 1,444,041
• 30 Day Avg. Volume: 1,620,777
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 11.53
• 1Y Price Target: $33.50
• Price Target Upside: 41.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $23.50 ▼(-0.97% Downside)

Perrigo's overall stock score reflects a challenging financial performance with profitability issues, as well as bearish technical indicators. The valuation is impacted by a negative P/E ratio, although the high dividend yield provides some support. The earnings call offers a cautiously optimistic outlook due to strategic initiatives and sector growth, but challenges remain in gross margin and market conditions.

Positive Factors

Contract Wins

PRGO is seeing net wins in store-branded contracts after exiting some lower-margin contracts last year.

Cost Improvements

Project Energize and the Supply Chain Reinvention Program continue to help drive operational and cost improvements.

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.

Negative Factors

Infant Formula Business

Recent wins have been overshadowed by a slower than expected recovery in the infant formula business.

Revenue Impact

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

Sales Performance

Sales were down -0.9% YOY, lower than the analyst's estimate, impacted by divestitures and exited products.

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, Consumer Self-Care Americas and Consumer Self-Care International. The Consumer Self-Care Americas segment focuses primarily on the development, manufacture, marketing, and sale of store brand, self-care products in categories, including upper respiratory, pain and sleep-aids, digestive health, nutrition, vitamins, minerals and supplements, healthy lifestyle, skincare and personal hygiene, and oral self-care in the United States, Mexico, Canada, and South America. The segment offers its products under the Prevacid 24HR, Good Sense, Zephrex D, ScarAway, Plackers, Rembrandt, Steripod, Firefly, REACH, Dr. Fresh, and Burt's Bees brand names. The Consumer Self-Care International segment develops, manufactures, markets, and distributes consumer self-care brands through a network of pharmacies, wholesalers, drug and grocery store retailers, and para-pharmacies in approximately 23 countries, primarily in Europe. The company also offers contract manufacturing services. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Perrigo generates revenue through the sale of its extensive product portfolio, which includes OTC medications, nutritional products, and personal care items. The company operates primarily through two main segments: Consumer Self-Care Americas and Consumer Self-Care International. Revenue streams primarily come from retail sales to pharmacies, grocery stores, and mass merchandisers, as well as e-commerce platforms. Additionally, Perrigo has entered into strategic partnerships and collaborations with other companies to expand its product offerings and market reach. The company also benefits from economies of scale in manufacturing and distribution, allowing it to maintain competitive pricing while maximizing profit margins. Factors contributing to its earnings include a strong brand portfolio, innovation in product development, and an increasing trend toward self-medication among consumers.

Perrigo Company Financial Statement Overview

Summary

Perrigo Company faces challenges in revenue growth and profitability, as reflected in its income statement. The balance sheet shows a stable capital structure, but profitability issues persist. Cash flow generation is a positive aspect, with improvements in free cash flow growth. Overall, the company needs to focus on enhancing revenue and profitability to strengthen its financial position.

Income Statement

Perrigo Company has faced challenges in maintaining revenue growth, with a significant decline in the TTM period. The gross profit margin remains relatively stable, but the net profit margin is negative, indicating profitability issues. The EBIT and EBITDA margins show some operational efficiency, but overall, the income statement reflects a need for improved revenue and cost management.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the negative return on equity highlights ongoing profitability challenges. The equity ratio suggests a stable capital structure, but the company needs to address its profitability to enhance shareholder value.

Cash Flow

Perrigo's cash flow statement shows positive free cash flow growth in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. However, the free cash flow to net income ratio indicates that profitability improvements are necessary to sustain cash flow growth.

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	611.40M	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	3.83B	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: Negative
• Last Price: 23.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRGO, the sentiment is Negative. The current price of 23.73 is below the 20-day moving average (MA) of 24.00, below the 50-day MA of 25.90, and below the 200-day MA of 25.87, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 58.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRGO.

Perrigo Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	76 Outperform	$2.49B	38.83	6.38%	―	5.55%	1145.24%
ANIP	66 Neutral	$1.99B	―	-2.82%	―	38.68%	-160.14%
AMRX	66 Neutral	$2.95B	1,465.63	106.97%	―	9.81%	―
VTRS	59 Neutral	$12.30B	―	-19.77%	4.61%	-7.47%	-438.39%
TEVA	58 Neutral	$21.22B	―	-2.31%	―	2.43%	64.37%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
PRGO	51 Neutral	$3.26B	―	-1.32%	4.76%	-2.32%	35.46%

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.

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.

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.