PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
NYSE:PRGO - New York Stock Exchange, Inc. - IE00BGH1M568 - Common Stock - Currency: USD
Taking everything into account, PRGO scores 5 out of 10 in our fundamental rating. PRGO was compared to 194 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of PRGO while its profitability can be described as average. 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.
In the past 5 years PRGO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of -1.85%, PRGO is doing good in the industry, outperforming 79.90% of the companies in the same industry.
With an excellent Return On Equity value of -4.13%, PRGO belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
The Return On Invested Capital of PRGO (3.66%) is better than 80.93% of its industry peers.
PRGO had an Average Return On Invested Capital over the past 3 years of 2.21%. This is significantly below the industry average of 14.87%.
The 3 year average ROIC (2.21%) for PRGO is below the current ROIC(3.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.85% | ||
| ROE | -4.13% | ||
| ROIC | 3.66% |
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
PRGO has a Operating Margin of 9.28%. This is amongst the best in the industry. PRGO outperforms 81.44% of its industry peers.
In the last couple of years the Operating Margin of PRGO has grown nicely.
Looking at the Gross Margin, with a value of 36.38%, PRGO is in line with its industry, outperforming 58.76% 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 | 9.28% | ||
| PM (TTM) | N/A | ||
| GM | 36.38% |
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.
Compared to 1 year ago, PRGO has more shares outstanding
PRGO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRGO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that PRGO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.85, PRGO perfoms like the industry average, outperforming 56.19% of the companies in the same industry.
PRGO has a debt to FCF ratio of 20.03. This is a negative value and a sign of low solvency as PRGO would need 20.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 20.03, PRGO is doing good in the industry, outperforming 77.84% of the companies in the same industry.
PRGO has a Debt/Equity ratio of 0.82. This is a neutral value indicating PRGO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, PRGO is not doing good in the industry: 69.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 20.03 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.49
WACC7.47%
2.3 Liquidity
PRGO has a Current Ratio of 2.36. This indicates that PRGO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.36, PRGO is in line with its industry, outperforming 42.27% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that PRGO should not have too much problems paying its short term obligations.
PRGO has a worse Quick ratio (1.28) than 67.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
PRGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.60%, which is quite good.
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 -4.84% 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)18.6%
EPS 3Y7.69%
EPS 5Y-8.68%
EPS Q2Q%106.9%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-3.53%
3.2 Future
Based on estimates for the next years, PRGO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.93% on average per year.
Based on estimates for the next years, PRGO will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y21.22%
EPS Next 2Y13.88%
EPS Next 3Y11.59%
EPS Next 5Y8.93%
Revenue Next Year-0.11%
Revenue Next 2Y1.01%
Revenue Next 3Y1.45%
Revenue Next 5Y1.76%
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
Based on the Price/Earnings ratio of 9.39, the valuation of PRGO can be described as reasonable.
Based on the Price/Earnings ratio, PRGO is valued cheaply inside the industry as 92.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.46, PRGO is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.11, the valuation of PRGO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PRGO is valued cheaper than 86.60% of the companies in the same industry.
PRGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGO is valued cheaply inside the industry as 87.63% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRGO is valued cheaply inside the industry as 83.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.45 | ||
| EV/EBITDA | 9.53 |
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)0.44
PEG (5Y)N/A
EPS Next 2Y13.88%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
PRGO has a Yearly Dividend Yield of 4.27%, which is a nice return.
Compared to an average industry Dividend Yield of 4.08, PRGO pays a better dividend. On top of this PRGO pays more dividend than 95.36% of the companies listed in the same industry.
PRGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
5.2 History
The dividend of PRGO is nicely growing with an annual growth rate of 6.29%!
PRGO has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PRGO decreased 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-86.25%
EPS Next 2Y13.88%
EPS Next 3Y11.59%
26.94
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners105.67%
Inst Owner Change-0.04%
Ins Owners0.42%
Ins Owner Change12.99%
Market Cap3.70B
Analysts78
Price Target37.4 (38.83%)
Short Float %3.67%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Yearly Dividend1.12
Dividend Growth(5Y)6.29%
DP-86.25%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3%
Min EPS beat(2)-1.43%
Max EPS beat(2)7.44%
EPS beat(4)2
Avg EPS beat(4)4.42%
Min EPS beat(4)-2.11%
Max EPS beat(4)13.78%
EPS beat(8)6
Avg EPS beat(8)8.15%
EPS beat(12)8
Avg EPS beat(12)4.45%
EPS beat(16)9
Avg EPS beat(16)-1.08%
Revenue beat(2)0
Avg Revenue beat(2)-6.2%
Min Revenue beat(2)-6.62%
Max Revenue beat(2)-5.79%
Revenue beat(4)0
Avg Revenue beat(4)-6.07%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)-4.69%
Revenue beat(8)0
Avg Revenue beat(8)-5%
Revenue beat(12)1
Avg Revenue beat(12)-4.09%
Revenue beat(16)1
Avg Revenue beat(16)-3.7%
PT rev (1m)0%
PT rev (3m)6.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.29%
EPS NY rev (1m)0%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.11 | ||
| P/S | 0.85 | ||
| P/FCF | 20.45 | ||
| P/OCF | 12.35 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.53 |
EPS(TTM)2.87
EY10.65%
EPS(NY)3.32
Fwd EY12.32%
FCF(TTM)1.32
FCFY4.89%
OCF(TTM)2.18
OCFY8.09%
SpS31.53
BVpS31.74
TBVpS-10.72
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.85% | ||
| ROE | -4.13% | ||
| ROCE | 4.63% | ||
| ROIC | 3.66% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 13.02% | ||
| OM | 9.28% | ||
| PM (TTM) | N/A | ||
| GM | 36.38% | ||
| FCFM | 4.18% |
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%
ROICexcg growth 3Y-27.17%
ROICexcg 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 20.03 | ||
| Debt/EBITDA | 4.94 | ||
| Cap/Depr | 36.59% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 41.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 0.85 |
F-Score5
WACC7.47%
ROIC/WACC0.49
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)18.6%
EPS 3Y7.69%
EPS 5Y-8.68%
EPS Q2Q%106.9%
EPS Next Y21.22%
EPS Next 2Y13.88%
EPS Next 3Y11.59%
EPS Next 5Y8.93%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-3.53%
Revenue Next Year-0.11%
Revenue Next 2Y1.01%
Revenue Next 3Y1.45%
Revenue Next 5Y1.76%
EBIT growth 1Y81.86%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year39.05%
EBIT Next 3Y16.52%
EBIT Next 5Y10.69%
FCF growth 1Y22.12%
FCF growth 3YN/A
FCF growth 5Y19.35%
OCF growth 1Y21.08%
OCF growth 3Y32.42%
OCF growth 5Y-1.32%