Perrigo Company (PRGO) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: 8.58%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -2.55%
• EPS Growth: 66.00%
• Country: US
• Employees: 8,379
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.80
• Shares Outstanding: 137,624,010
• 10 Day Avg. Volume: 2,294,497
• 30 Day Avg. Volume: 1,941,999
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $27.50
• Price Target Upside: 27.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $14.00 ▼(-35.25% Downside)

Perrigo's overall stock score reflects significant challenges in financial performance and valuation, with declining revenue and profitability being major concerns. Technical indicators suggest a bearish trend, further impacting the score. Despite these issues, the company shows some operational strengths and strategic focus, as highlighted in the earnings call, which slightly mitigates the overall negative outlook.

Positive Factors

Operational Efficiency

The success of Project Energize demonstrates Perrigo's ability to improve operational efficiency, which can enhance profitability and competitiveness over the long term.

Market Share Gains

Consistent market share gains in the U.S. OTC segment indicate strong brand positioning and consumer preference, supporting revenue growth and market leadership.

Supply Chain Improvements

Ongoing supply chain improvements are expected to enhance cost efficiency and operational resilience, providing a competitive edge in the long run.

Negative Factors

Declining Revenue

A decline in organic net sales reflects challenges in maintaining revenue growth, which could impact long-term financial performance and market competitiveness.

Profitability Challenges

Decreasing gross profit and margin indicate operational inefficiencies and pricing pressures, which could hinder profitability and investment capacity.

High Leverage

Higher leverage ratios can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Perrigo Company Business Overview & Revenue Model

Company Description

Perrigo Company plc is a global healthcare supplier focused on providing quality over-the-counter (OTC) consumer products and prescription pharmaceuticals. Headquartered in Dublin, Ireland, Perrigo operates primarily in the Consumer Self-Care and Prescription segments. The company offers a wide range of products, including personal care items, dietary supplements, baby care products, and over-the-counter medications, catering to the needs of consumers and healthcare professionals worldwide.

How the Company Makes Money

Perrigo generates revenue primarily through the sale of its over-the-counter consumer products and prescription pharmaceuticals. The company operates on a model that includes both branded and private label products, allowing it to serve a diverse market. Key revenue streams come from retail sales of OTC products, which are often sold under Perrigo's own brands or as store brands for major retailers. Additionally, Perrigo earns revenue from its prescription pharmaceuticals segment, which includes a portfolio of generic and specialty medications. Strategic partnerships with retailers and wholesalers also enhance its distribution capabilities, while ongoing investments in research and development help introduce new products and maintain competitive advantage in the market. The company benefits from economies of scale and efficient manufacturing processes, which contribute to its profitability.

Perrigo Company Financial Statement Overview

Summary

Perrigo Company faces challenges with declining revenue and profitability, as evidenced by negative net income and margins. Despite these issues, the company maintains a strong balance sheet with low leverage, which provides financial stability. Cash flow generation shows some positive trends, but there is room for improvement in efficiency. The company needs to focus on improving profitability and operational efficiency to enhance its financial performance.

Income Statement

Perrigo Company has experienced declining revenue over the TTM period with a negative revenue growth rate of -1.02%. The gross profit margin is moderate at 35.46%, but the net profit margin is negative at -1.21%, indicating profitability challenges. EBIT and EBITDA margins are relatively low, reflecting operational inefficiencies.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.008, suggesting minimal leverage risk. However, the return on equity is negative, indicating that the company is not generating positive returns on shareholder investments. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Perrigo's cash flow performance shows some positive trends, with a free cash flow growth rate of 5.73% in the TTM period. The operating cash flow to net income ratio is 0.33, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.72 suggests room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.28B	4.37B	4.66B	4.45B	4.14B	4.09B
Gross Profit	1.52B	1.54B	1.68B	1.46B	1.42B	1.49B
EBITDA	611.50M	433.00M	525.00M	355.50M	695.90M	518.40M
Net Income	-51.80M	-171.80M	-12.70M	-140.60M	-68.90M	-162.60M
Balance Sheet
Total Assets	10.08B	9.65B	10.81B	11.02B	10.43B	11.49B
Cash, Cash Equivalents and Short-Term Investments	432.10M	558.80M	751.30M	600.70M	1.86B	631.50M
Total Debt	3.83B	3.62B	4.07B	4.32B	3.69B	3.73B
Total Liabilities	5.64B	5.33B	6.04B	6.18B	5.27B	5.83B
Stockholders Equity	4.45B	4.32B	4.77B	4.84B	5.15B	5.66B
Cash Flow
Free Cash Flow	271.40M	244.60M	303.80M	210.90M	4.20M	465.80M
Operating Cash Flow	375.70M	362.90M	405.50M	307.30M	156.30M	636.20M
Investing Cash Flow	-88.00M	78.80M	-77.50M	-1.96B	1.28B	-187.80M
Financing Cash Flow	-1.32B	-611.00M	-187.20M	421.60M	-178.70M	-181.10M

Perrigo Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.62
• 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 21.62 is above the 20-day moving average (MA) of 13.20, above the 50-day MA of 17.24, and below the 200-day MA of 22.86, indicating a neutral trend. The MACD of -0.99 indicates Negative momentum. The RSI at 38.44 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 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
INDV	67 Neutral	$4.57B	35.85	―	―	-0.25%	―
TEVA	63 Neutral	$32.27B	46.64	10.77%	―	-0.25%	―
VTRS	60 Neutral	$12.77B	―	-21.09%	4.29%	-6.40%	-320.23%
AMRX	58 Neutral	$3.56B	788.19	―	―	9.50%	―
SUPN	55 Neutral	$2.70B	―	-1.86%	―	4.54%	-130.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	49 Neutral	$1.85B	-35.68	-0.65%	8.58%	-2.55%	66.00%

Perrigo Company Corporate Events

Perrigo Company Reports Q3 2025 Financial Results

On November 5, 2025, Perrigo Company announced its financial results for the third quarter of 2025, highlighting gains in market share across several OTC categories despite a challenging market environment. The company reported a strategic review of its infant formula business, alongside ongoing reviews of its oral care business and the sale of its dermacosmetics business. Perrigo’s financial performance showed a decrease in net sales by 4.1% year-over-year, with adjusted operating income down by 4.9%. However, the company achieved meaningful EPS growth year-to-date, driven by disciplined cost management and favorable foreign exchange impacts. The company also updated its full-year 2025 outlook due to dynamics in the infant formula industry and soft OTC market trends, aiming for mid-to-high single-digit adjusted EPS growth.