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Perrigo Company PLC

Perrigo Company PLC

PRGO
$13.66USD↑+0.52%+0.07 today

MARKET CAP

1.9B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$14 – $14

52W RANGE

$9
$23

AI Summary

Stalk
StalkMedium

PRGO remains in a Stage 2 advancing structure with rising EMAs and higher highs/lows, but the most recent candle's long upper wick and E-candle overlay at overhead resistance in extreme overbought territory signal exhaustion risk. Under the Speculative strategy’s emphasis on momentum continuation, it is prudent to defer entry until a shallow pullback into the rising 9- and 20-EMA zone confirms support.

  • ↑Earnings yield 1.38% and dividend yield 1.31% support cash returns
  • ↑Book-to-price ratio 2.99 and GF Value $23.78 vs. $13.59 price imply undervaluation
  • ↓Core net sales fell 3.1% YoY to ~$1.2 B amid OTC softness
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Perrigo Company plc (NYSE: PRGO) specializes in over-the-counter (OTC) health and wellness products, particularly private label and branded formulations. Operating a strategic business in both the U.S. and Europe, Perrigo is in a competitive space focused on affordable self-care solutions amidst rising consumer demand for cost-effective healthcare products. With an evolving portfolio, the company targets sustained leadership in store-brand OTC products while optimizing operational efficiency and financial stability amid market challenges.

Bull says

  • ↑Earnings yield 1.38% and dividend yield 1.31% support cash returns
  • ↑Book-to-price ratio 2.99 and GF Value $23.78 vs. $13.59 price imply undervaluation
  • ↑Total debt cut to $3.3B via $359M divestiture strengthens the balance sheet
  • ↑U.S. store-brand OTC share up 50 bps, showing resilient demand
  • ↑Strategic review of infant formula segment could enhance profitability
  • ↑Elevated liquidity supports obligations and opportunistic investments

Bear says

  • ↓Core net sales fell 3.1% YoY to ~$1.2 B amid OTC softness
  • ↓Adjusted EPS dropped to $0.46 from $0.58 last year
  • ↓Leverage remains elevated at 2.18x, risking financial strain
  • ↓Momentum weak with -2.70 score and short interest up 1.7%
  • ↓Potential value trap if growth rank delays recovery
  • ↓Negative profitability factors pressure margins

Investment themes with PRGO

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q4 2023 · Mgmt. Guidance

Updated 04-02-2025neutral

Transcript signals

Bull points

  • $2.58
  • Fourth quarter adjusted earnings per share was $0.86, an increase of 14.7% year-over-year, driven by business growth, benefits from our Supply Chain Reinvention Program and HRA synergies.
  • Full-year adjusted earnings per share of $2.58 increased almost 25%, driven by business growth, including benefits from Supply Chain Reinvention Program, acquisitions, and no repeating tax benefits.

Bear points

  • given the cash required to implement Project Energize and infant formula investments, we will pay down $400 million in bonds due at the end of the year versus our initial thoughts to pay these bonds early, which has a negative earnings per share impact of $0.05 to our initial outlook.
  • flat compared to the prior year in the second quarter and returning to year-over-year growth in the third and fourth quarters.
  • organic growth excludes acquisitions, divestitures, exited product lines, and currency in both comparable periods.
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