PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRGO - IE00BGH1M568 - Common Stock
15.08 USD
+0.38 (+2.59%)
15.08 USD
0 (0%)
Overall PRGO gets a fundamental rating of 5 out of 10. We evaluated PRGO against 191 industry peers in the Pharmaceuticals industry. There are concerns on the financial health of PRGO while its profitability can be described as average. PRGO is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PRGO was profitable.
In the past year PRGO had a positive cash flow from operations.
PRGO had negative earnings in each of the past 5 years.
Each year in the past 5 years PRGO had a positive operating cash flow.
1.2 Ratios
PRGO has a Return On Assets of -0.51%. This is in the better half of the industry: PRGO outperforms 76.44% of its industry peers.
PRGO's Return On Equity of -1.16% is fine compared to the rest of the industry. PRGO outperforms 78.53% of its industry peers.
The Return On Invested Capital of PRGO (3.48%) is better than 81.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRGO is significantly below the industry average of 12.85%.
The last Return On Invested Capital (3.48%) for PRGO is above the 3 year average (2.21%), which is a sign of increasing profitability.
| 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
PRGO's Operating Margin of 9.18% is amongst the best of the industry. PRGO outperforms 81.68% 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 35.46%, PRGO is in line with its industry, outperforming 59.69% 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.
Compared to 1 year ago, PRGO has more shares outstanding
Compared to 5 years ago, PRGO has more shares outstanding
The debt/assets ratio for PRGO has been reduced compared to a year ago.
2.2 Solvency
PRGO has an Altman-Z score of 0.66. This is a bad value and indicates that PRGO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.66, PRGO perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
PRGO has a debt to FCF ratio of 13.43. This is a negative value and a sign of low solvency as PRGO would need 13.43 years to pay back of all of its debts.
PRGO's Debt to FCF ratio of 13.43 is fine compared to the rest of the industry. PRGO outperforms 77.49% of its industry peers.
PRGO has a Debt/Equity ratio of 0.81. This is a neutral value indicating PRGO is somewhat dependend on debt financing.
The Debt to Equity ratio of PRGO (0.81) is worse than 71.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 13.43 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.44
WACC7.84%
2.3 Liquidity
A Current Ratio of 2.51 indicates that PRGO has no problem at all paying its short term obligations.
The Current ratio of PRGO (2.51) is comparable to the rest of the industry.
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.
PRGO has a worse Quick ratio (1.44) than 63.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
PRGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.47%, which is quite good.
Measured over the past years, PRGO shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.68% on average per year.
Looking at the last year, PRGO shows a decrease in Revenue. The Revenue has decreased by -2.51% in the last year.
Measured over the past years, PRGO shows a small growth in Revenue. The Revenue has been growing by 2.48% on average per year.
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.
The Revenue is expected to decrease by -0.03% on average over the next years.
EPS Next Y9.87%
EPS Next 2Y5.36%
EPS Next 3Y5.62%
EPS Next 5Y6.23%
Revenue Next Year-4.18%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.2%
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.
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
A Price/Earnings ratio of 5.20 indicates a rather cheap valuation of PRGO.
96.34% of the companies in the same industry are more expensive than PRGO, based on the Price/Earnings ratio.
PRGO is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
PRGO is valuated cheaply with a Price/Forward Earnings ratio of 5.31.
95.29% of the companies in the same industry are more expensive than PRGO, based on the Price/Forward Earnings ratio.
PRGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.2 | ||
| Fwd PE | 5.31 |
4.2 Price Multiples
92.15% 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 95.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.65 | ||
| EV/EBITDA | 7.22 |
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)0.53
PEG (5Y)N/A
EPS Next 2Y5.36%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
PRGO has a Yearly Dividend Yield of 8.33%, which is a nice return.
In the last 3 months the price of PRGO has falen by -29.04%. 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 0.42, PRGO pays a better dividend. On top of this PRGO pays more dividend than 98.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, PRGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.33% |
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.
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 2Y5.36%
EPS Next 3Y5.62%
15.08
+0.38 (+2.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners112.1%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change3.1%
Market Cap2.08B
Revenue(TTM)4.28B
Net Income(TTM)-51.80M
Analysts76
Price Target19.04 (26.26%)
Short Float %10.15%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.33% |
Yearly Dividend1.12
Dividend Growth(5Y)6.29%
DP-306.95%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-3.45%
PT rev (3m)-44.28%
EPS NQ rev (1m)-2.46%
EPS NQ rev (3m)-25.13%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-7.78%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-6.33%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.2 | ||
| Fwd PE | 5.31 | ||
| P/S | 0.48 | ||
| P/FCF | 7.65 | ||
| P/OCF | 5.52 | ||
| P/B | 0.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.22 |
EPS(TTM)2.9
EY19.23%
EPS(NY)2.84
Fwd EY18.85%
FCF(TTM)1.97
FCFY13.08%
OCF(TTM)2.73
OCFY18.1%
SpS31.11
BVpS32.31
TBVpS-9.62
PEG (NY)0.53
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 | 0.66 |
F-Score5
WACC7.84%
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 Y9.87%
EPS Next 2Y5.36%
EPS Next 3Y5.62%
EPS Next 5Y6.23%
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-4.06%
Revenue Next Year-4.18%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.2%
Revenue Next 5Y-0.03%
EBIT growth 1Y65.28%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year31.91%
EBIT Next 3Y10.91%
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.
Can you provide the valuation status for PERRIGO CO PLC?
ChartMill assigns a valuation rating of 9 / 10 to PERRIGO CO PLC (PRGO). This can be considered as Undervalued.
What is the profitability of PRGO stock?
PERRIGO CO PLC (PRGO) has a profitability rating of 6 / 10.
What is the earnings growth outlook for PERRIGO CO PLC?
The Earnings per Share (EPS) of PERRIGO CO PLC (PRGO) is expected to grow by 9.87% in the next year.
Can you provide the dividend sustainability for PRGO stock?
The dividend rating of PERRIGO CO PLC (PRGO) is 6 / 10 and the dividend payout ratio is -306.95%.