Perrigo Company (PRGO) AI Stock Analysis

• Market Cap: $3.79B
• Dividend Yield: 4.26%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -4.85%
• EPS Growth: -4290.31%
• Country: US
• Employees: 8,379
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.60
• Shares Outstanding: 137,477,310
• 10 Day Avg. Volume: 1,145,662
• 30 Day Avg. Volume: 1,334,541
• PEG Ratio: 34.33
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.74
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 5.44
• 1Y Price Target: $34.25
• Price Target Upside: 25.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: $28.00 ▲(2.75%Upside)

Perrigo's overall stock score reflects significant financial challenges, with declining sales and persistent losses weighing heavily. However, the company is making strategic efforts to improve profitability and operational efficiencies, as evidenced by recent earnings call highlights. Technical analysis suggests neutral stock movement, while valuation metrics call for caution due to negative earnings. The dividend yield offers some investor appeal, but risks remain due to macroeconomic uncertainties and cost pressures.

Positive Factors

Investor Sentiment

Meetings were highly positive and investor sentiment for the company continues to grow as it appears the worst is behind with infant formula, management is executing on its efficiency plans, there's significant FCF generation opportunity, and management is on track to deleverage.

Market Share

Perrigo is making progress, with volume sales in each of the 6 weeks through 3/9 outpacing volume sales of the overall industry, highlighting share gains.

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

Business Adjustments

The current administration's efforts to ensure stringent standards for international manufacturers could allow Perrigo to gain market share as foreign manufacturers adjust.

Sales Performance

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
4.34B	4.37B	4.66B	4.45B	4.14B	5.06B
	Gross Profit
1.58B	1.54B	1.68B	1.46B	1.42B	1.82B
	EBIT
306.30M	112.90M	151.90M	172.80M	573.70M	932.40M
	EBITDA
467.40M	493.70M	525.00M	507.20M	915.60M	661.90M
	Net Income Common Stockholders
-177.60M	-171.80M	-12.70M	-130.90M	-130.90M	-162.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
409.90M	558.80M	751.30M	600.70M	1.86B	641.50M
	Total Assets
9.76B	9.65B	10.81B	11.02B	10.43B	11.49B
	Total Debt
3.63B	3.62B	4.07B	4.11B	3.52B	3.57B
	Net Debt
3.22B	3.06B	3.32B	3.51B	1.66B	2.92B
	Total Liabilities
5.40B	5.33B	6.04B	6.18B	5.27B	5.83B
	Stockholders Equity
4.36B	4.32B	4.77B	4.84B	5.15B	5.66B
Cash Flow		Free Cash Flow
181.10M	244.60M	303.80M	210.90M	4.20M	465.80M
	Operating Cash Flow
299.80M	362.90M	405.50M	307.30M	156.30M	636.20M
	Investing Cash Flow
76.60M	78.80M	-77.50M	-1.96B	1.28B	-187.80M
	Financing Cash Flow
-612.40M	-611.00M	-187.20M	421.60M	-178.70M	-181.10M

Perrigo Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 27.25 is above the 20-day moving average (MA) of 26.66, above the 50-day MA of 25.86, and above the 200-day MA of 25.77, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 79.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.86B	29.67	6.32%	―	11.82%	―
ANIP	64 Neutral	$1.36B	―	-5.19%	―	30.26%	-173.36%
PRGO	63 Neutral	$3.79B	―	-3.64%	4.26%	-4.85%	-4290.31%
TEVA	57 Neutral	$19.97B	―	-18.98%	―	3.38%	-175.90%
AMRX	56 Neutral	$2.44B	―	106.97%	―	13.42%	92.50%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
VTRS	53 Neutral	$10.61B	―	-21.25%	5.34%	-6.88%	-6809.78%

Perrigo Company Corporate Events

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.