PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRGO - IE00BGH1M568 - Common Stock
13.42 USD
+0.5 (+3.87%)
13.41 USD
-0.01 (-0.07%)
Taking everything into account, PRGO scores 5 out of 10 in our fundamental rating. PRGO was compared to 192 industry peers in the Pharmaceuticals industry. PRGO has a medium profitability rating, but doesn't score so well on its financial health evaluation. PRGO is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PRGO had positive earnings in the past year.
In the past year PRGO had a positive cash flow from operations.
In the past 5 years PRGO always reported negative net income.
Each year in the past 5 years PRGO had a positive operating cash flow.
1.2 Ratios
PRGO has a better Return On Assets (-0.51%) than 76.56% of its industry peers.
The Return On Equity of PRGO (-1.16%) is better than 79.17% of its industry peers.
The Return On Invested Capital of PRGO (3.48%) is better than 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRGO is significantly below the industry average of 12.71%.
The 3 year average ROIC (2.21%) for PRGO is below the current ROIC(3.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -1.16% | ||
| ROIC | 3.48% |
ROA(3y)-1.06%
ROA(5y)-1.05%
ROE(3y)-2.38%
ROE(5y)-2.27%
ROIC(3y)2.21%
ROIC(5y)2.9%
1.3 Margins
The Operating Margin of PRGO (9.18%) is better than 81.25% of its industry peers.
PRGO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.46%, PRGO perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
PRGO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.18% | ||
| PM (TTM) | N/A | ||
| GM | 35.46% |
OM growth 3Y-22.79%
OM growth 5Y3.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.02%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRGO is destroying value.
PRGO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRGO has more shares outstanding
Compared to 1 year ago, PRGO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that PRGO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.64, PRGO perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
The Debt to FCF ratio of PRGO is 13.43, which is on the high side as it means it would take PRGO, 13.43 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 13.43, PRGO is doing good in the industry, outperforming 76.56% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that PRGO is somewhat dependend on debt financing.
PRGO has a Debt to Equity ratio of 0.81. This is in the lower half of the industry: PRGO underperforms 69.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 13.43 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.44
WACC7.98%
2.3 Liquidity
PRGO has a Current Ratio of 2.51. This indicates that PRGO is financially healthy and has no problem in meeting its short term obligations.
PRGO has a Current ratio of 2.51. This is comparable to the rest of the industry: PRGO outperforms 45.31% of its industry peers.
PRGO has a Quick Ratio of 1.44. This is a normal value and indicates that PRGO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PRGO (1.44) is worse than 63.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.47% over the past year.
The Earnings Per Share has been decreasing by -8.68% on average over the past years.
PRGO shows a decrease in Revenue. In the last year, the revenue decreased by -2.51%.
The Revenue has been growing slightly by 2.48% on average over the past years.
EPS 1Y (TTM)16.47%
EPS 3Y7.69%
EPS 5Y-8.68%
EPS Q2Q%-1.23%
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-4.06%
3.2 Future
PRGO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.23% yearly.
PRGO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.03% yearly.
EPS Next Y18.61%
EPS Next 2Y11.5%
EPS Next 3Y10.22%
EPS Next 5Y6.23%
Revenue Next Year-1.19%
Revenue Next 2Y-0.35%
Revenue Next 3Y0.42%
Revenue Next 5Y-0.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PRGO is valuated cheaply with a Price/Earnings ratio of 4.63.
Based on the Price/Earnings ratio, PRGO is valued cheaply inside the industry as 97.40% of the companies are valued more expensively.
PRGO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 4.22, the valuation of PRGO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRGO indicates a rather cheap valuation: PRGO is cheaper than 96.88% of the companies listed in the same industry.
PRGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.63 | ||
| Fwd PE | 4.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGO is valued cheaper than 93.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRGO indicates a rather cheap valuation: PRGO is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
PRGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRGO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y11.5%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
PRGO has a Yearly Dividend Yield of 9.46%, which is a nice return.
In the last 3 months the price of PRGO has falen by -43.47%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.92, PRGO pays a better dividend. On top of this PRGO pays more dividend than 98.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, PRGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
5.2 History
The dividend of PRGO is nicely growing with an annual growth rate of 6.29%!
PRGO has been paying a dividend for at least 10 years, so it has a reliable track record.
PRGO has decreased its dividend recently.
Dividend Growth(5Y)6.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of PRGO are negative and hence is the payout ratio. PRGO will probably not be able to sustain this dividend level.
The dividend of PRGO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-306.95%
EPS Next 2Y11.5%
EPS Next 3Y10.22%
13.42
+0.5 (+3.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners105.83%
Inst Owner Change17.3%
Ins Owners0.45%
Ins Owner Change3.81%
Market Cap1.85B
Revenue(TTM)4.28B
Net Income(TTM)-51.80M
Analysts78
Price Target19.72 (46.94%)
Short Float %7.4%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.46% |
Yearly Dividend1.12
Dividend Growth(5Y)6.29%
DP-306.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.92%
Min EPS beat(2)-5.82%
Max EPS beat(2)3.97%
EPS beat(4)2
Avg EPS beat(4)1.04%
Min EPS beat(4)-5.82%
Max EPS beat(4)7.44%
EPS beat(8)5
Avg EPS beat(8)5.08%
EPS beat(12)9
Avg EPS beat(12)6.13%
EPS beat(16)10
Avg EPS beat(16)2.06%
Revenue beat(2)0
Avg Revenue beat(2)-5.54%
Min Revenue beat(2)-6.76%
Max Revenue beat(2)-4.32%
Revenue beat(4)0
Avg Revenue beat(4)-5.87%
Min Revenue beat(4)-6.76%
Max Revenue beat(4)-4.32%
Revenue beat(8)0
Avg Revenue beat(8)-5.24%
Revenue beat(12)0
Avg Revenue beat(12)-4.82%
Revenue beat(16)1
Avg Revenue beat(16)-3.87%
PT rev (1m)-42.29%
PT rev (3m)-47.27%
EPS NQ rev (1m)-23%
EPS NQ rev (3m)-23.24%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-2.15%
Revenue NQ rev (1m)-6.25%
Revenue NQ rev (3m)-6.25%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.63 | ||
| Fwd PE | 4.22 | ||
| P/S | 0.43 | ||
| P/FCF | 6.8 | ||
| P/OCF | 4.92 | ||
| P/B | 0.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.88 |
EPS(TTM)2.9
EY21.61%
EPS(NY)3.18
Fwd EY23.72%
FCF(TTM)1.97
FCFY14.7%
OCF(TTM)2.73
OCFY20.34%
SpS31.11
BVpS32.31
TBVpS-9.62
PEG (NY)0.25
PEG (5Y)N/A
Graham Number45.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -1.16% | ||
| ROCE | 4.4% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.65% | ||
| ROICexgc | 11.35% | ||
| OM | 9.18% | ||
| PM (TTM) | N/A | ||
| GM | 35.46% | ||
| FCFM | 6.34% |
ROA(3y)-1.06%
ROA(5y)-1.05%
ROE(3y)-2.38%
ROE(5y)-2.27%
ROIC(3y)2.21%
ROIC(5y)2.9%
ROICexc(3y)2.37%
ROICexc(5y)3.33%
ROICexgc(3y)9.14%
ROICexgc(5y)12.63%
ROCE(3y)2.79%
ROCE(5y)3.67%
ROICexgc growth 3Y-27.17%
ROICexgc growth 5Y8.08%
ROICexc growth 3Y-25.01%
ROICexc growth 5Y10.11%
OM growth 3Y-22.79%
OM growth 5Y3.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.02%
GM growth 5Y-0.98%
F-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 13.43 | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 31.43% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 0.64 |
F-Score5
WACC7.98%
ROIC/WACC0.44
Cap/Depr(3y)31.02%
Cap/Depr(5y)43.56%
Cap/Sales(3y)2.35%
Cap/Sales(5y)3.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.47%
EPS 3Y7.69%
EPS 5Y-8.68%
EPS Q2Q%-1.23%
EPS Next Y18.61%
EPS Next 2Y11.5%
EPS Next 3Y10.22%
EPS Next 5Y6.23%
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-4.06%
Revenue Next Year-1.19%
Revenue Next 2Y-0.35%
Revenue Next 3Y0.42%
Revenue Next 5Y-0.03%
EBIT growth 1Y65.28%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year40.12%
EBIT Next 3Y15.03%
EBIT Next 5Y7.81%
FCF growth 1Y-6.93%
FCF growth 3YN/A
FCF growth 5Y19.35%
OCF growth 1Y-1.83%
OCF growth 3Y32.42%
OCF growth 5Y-1.32%
PERRIGO CO PLC / PRGO FAQ
What is the ChartMill fundamental rating of PERRIGO CO PLC (PRGO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PRGO.
What is the valuation status for PRGO stock?
ChartMill assigns a valuation rating of 9 / 10 to PERRIGO CO PLC (PRGO). This can be considered as Undervalued.
How profitable is PERRIGO CO PLC (PRGO) stock?
PERRIGO CO PLC (PRGO) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PERRIGO CO PLC (PRGO) stock?
The Price/Earnings (PE) ratio for PERRIGO CO PLC (PRGO) is 4.63 and the Price/Book (PB) ratio is 0.42.
What is the financial health of PERRIGO CO PLC (PRGO) stock?
The financial health rating of PERRIGO CO PLC (PRGO) is 3 / 10.