PERRIGO Co plc (PRGO) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Perrigo's price-to-book of 0.94 is below the Drugs median of 2.29.

Trading below fair value

The share price of $16.55 is below our fair value estimate of $23.77.

Margin of safety over 20%

The price is 30.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -4.5% over the last twelve months; the Drugs median is 8.0%.

Guidance lowered

Perrigo lowered its Fiscal 2026 Organic Core Net Sales Growth outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 32.3% over the last twelve months, against 35.5% a year earlier.

Return on equity under 15%

Return on equity was -51.4% over the last twelve months and averaged -9.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -19.7%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Perrigo's return on equity of -51.4% is above the Drugs median of -58.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -43.3% over the last twelve months, against a 5-year average of -8.5%.

Net margin above the industry

Perrigo's net margin of -43.3% is above the Drugs median of -53.0%.

High debt

Debt is 135% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 63.0% five years ago to 135%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 7.3% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.35 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -0.42; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Perrigo paid dividends worth 5.3% of the share price over the last twelve months.

Yield above Treasuries

The 5.3% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Perrigo yields 5.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 95.2% of free cash flow.