PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
USA - NYSE:PRGO - IE00BGH1M568 - Common Stock
20.74 USD
+0.1 (+0.48%)
20.74 USD
0 (0%)
Overall PRGO gets a fundamental rating of 5 out of 10. We evaluated PRGO against 192 industry peers in the Pharmaceuticals industry. While PRGO is still in line with the averages on profitability rating, there are concerns on its financial health. PRGO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. PRGO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PRGO had positive earnings in the past year.
PRGO had a positive operating cash flow in the past year.
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
The Return On Assets of PRGO (-0.80%) is better than 78.65% of its industry peers.
Looking at the Return On Equity, with a value of -1.80%, PRGO is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
PRGO has a Return On Invested Capital of 3.64%. This is amongst the best in the industry. PRGO outperforms 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRGO is significantly below the industry average of 15.40%.
The last Return On Invested Capital (3.64%) for PRGO is above the 3 year average (2.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -1.8% | ||
| ROIC | 3.64% |
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
Looking at the Operating Margin, with a value of 9.55%, PRGO belongs to the top of the industry, outperforming 81.77% of the companies in the same industry.
PRGO's Operating Margin has improved in the last couple of years.
The Gross Margin of PRGO (35.73%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PRGO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.55% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRGO is destroying value.
The number of shares outstanding for PRGO has been increased compared to 1 year ago.
The number of shares outstanding for PRGO has been increased compared to 5 years ago.
Compared to 1 year ago, PRGO has an improved debt to assets ratio.
2.2 Solvency
PRGO has an Altman-Z score of 0.73. This is a bad value and indicates that PRGO is not financially healthy and even has some risk of bankruptcy.
PRGO has a Altman-Z score (0.73) which is comparable to the rest of the industry.
PRGO has a debt to FCF ratio of 14.23. This is a negative value and a sign of low solvency as PRGO would need 14.23 years to pay back of all of its debts.
The Debt to FCF ratio of PRGO (14.23) is better than 77.60% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that PRGO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, PRGO is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 14.23 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.46
WACC7.97%
2.3 Liquidity
A Current Ratio of 2.32 indicates that PRGO has no problem at all paying its short term obligations.
PRGO's Current ratio of 2.32 is in line compared to the rest of the industry. PRGO outperforms 42.71% of its industry peers.
PRGO has a Quick Ratio of 1.24. This is a normal value and indicates that PRGO is financially healthy and should not expect problems in meeting its short term obligations.
PRGO's Quick ratio of 1.24 is on the low side compared to the rest of the industry. PRGO is outperformed by 69.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.43% over the past year.
PRGO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.68% yearly.
Looking at the last year, PRGO shows a decrease in Revenue. The Revenue has decreased by -2.31% in the last year.
PRGO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.48% yearly.
EPS 1Y (TTM)25.43%
EPS 3Y7.69%
EPS 5Y-8.68%
EPS Q2Q%7.55%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-0.86%
3.2 Future
PRGO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.85% yearly.
Based on estimates for the next years, PRGO will show a small growth in Revenue. The Revenue will grow by 1.28% on average per year.
EPS Next Y18.97%
EPS Next 2Y11.71%
EPS Next 3Y10.4%
EPS Next 5Y8.85%
Revenue Next Year-1.08%
Revenue Next 2Y-0.28%
Revenue Next 3Y0.49%
Revenue Next 5Y1.28%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.13, which indicates a rather cheap valuation of PRGO.
Based on the Price/Earnings ratio, PRGO is valued cheaply inside the industry as 94.27% 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 26.19.
A Price/Forward Earnings ratio of 6.49 indicates a rather cheap valuation of PRGO.
PRGO's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRGO is cheaper than 93.23% of the companies in the same industry.
PRGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 6.49 |
4.2 Price Multiples
91.15% of the companies in the same industry are more expensive than PRGO, based on the Enterprise Value to EBITDA ratio.
PRGO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRGO is cheaper than 90.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.12 | ||
| EV/EBITDA | 8.14 |
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)0.38
PEG (5Y)N/A
EPS Next 2Y11.71%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
PRGO has a Yearly Dividend Yield of 5.40%, which is a nice return.
In the last 3 months the price of PRGO has falen by -22.15%. 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 6.29, PRGO pays a better dividend. On top of this PRGO pays more dividend than 97.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, PRGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
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
PRGO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
PRGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-195.14%
EPS Next 2Y11.71%
EPS Next 3Y10.4%
20.74
+0.1 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners105.83%
Inst Owner Change-0.13%
Ins Owners0.45%
Ins Owner Change7.93%
Market Cap2.85B
Revenue(TTM)4.33B
Net Income(TTM)-80300000
Analysts78
Price Target34.17 (64.75%)
Short Float %8.39%
Short Ratio6.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
Yearly Dividend1.12
Dividend Growth(5Y)6.29%
DP-195.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.81%
Min EPS beat(2)-5.82%
Max EPS beat(2)7.44%
EPS beat(4)1
Avg EPS beat(4)-0.48%
Min EPS beat(4)-5.82%
Max EPS beat(4)7.44%
EPS beat(8)5
Avg EPS beat(8)4.63%
EPS beat(12)8
Avg EPS beat(12)4.32%
EPS beat(16)9
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-5.05%
Min Revenue beat(2)-5.79%
Max Revenue beat(2)-4.32%
Revenue beat(4)0
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-6.62%
Max Revenue beat(4)-4.32%
Revenue beat(8)0
Avg Revenue beat(8)-5.42%
Revenue beat(12)0
Avg Revenue beat(12)-4.72%
Revenue beat(16)1
Avg Revenue beat(16)-3.62%
PT rev (1m)0%
PT rev (3m)-8.64%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-3.81%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 6.49 | ||
| P/S | 0.66 | ||
| P/FCF | 11.12 | ||
| P/OCF | 7.79 | ||
| P/B | 0.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.14 |
EPS(TTM)2.91
EY14.03%
EPS(NY)3.19
Fwd EY15.4%
FCF(TTM)1.87
FCFY9%
OCF(TTM)2.66
OCFY12.83%
SpS31.44
BVpS32.51
TBVpS-11.41
PEG (NY)0.38
PEG (5Y)N/A
Graham Number46.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.8% | ||
| ROE | -1.8% | ||
| ROCE | 4.61% | ||
| ROIC | 3.64% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 13.21% | ||
| OM | 9.55% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% | ||
| FCFM | 5.93% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 14.23 | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 33.3% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 0.73 |
F-Score5
WACC7.97%
ROIC/WACC0.46
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)25.43%
EPS 3Y7.69%
EPS 5Y-8.68%
EPS Q2Q%7.55%
EPS Next Y18.97%
EPS Next 2Y11.71%
EPS Next 3Y10.4%
EPS Next 5Y8.85%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-0.86%
Revenue Next Year-1.08%
Revenue Next 2Y-0.28%
Revenue Next 3Y0.49%
Revenue Next 5Y1.28%
EBIT growth 1Y104.45%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year40.12%
EBIT Next 3Y15.03%
EBIT Next 5Y10.05%
FCF growth 1Y8.54%
FCF growth 3YN/A
FCF growth 5Y19.35%
OCF growth 1Y15.37%
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 7.13 and the Price/Book (PB) ratio is 0.64.
What is the financial health of PERRIGO CO PLC (PRGO) stock?
The financial health rating of PERRIGO CO PLC (PRGO) is 3 / 10.