PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
NYSE:PRGO - New York Stock Exchange, Inc. - IE00BGH1M568 - Common Stock - Currency: USD
PRGO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 193 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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally PRGO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PRGO was profitable.
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 -0.80%, PRGO is doing good in the industry, outperforming 79.79% of the companies in the same industry.
PRGO has a Return On Equity of -1.80%. This is amongst the best in the industry. PRGO outperforms 81.35% of its industry peers.
With an excellent Return On Invested Capital value of 3.64%, PRGO belongs to the best of the industry, outperforming 80.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PRGO is significantly below the industry average of 14.76%.
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
With an excellent Operating Margin value of 9.55%, PRGO belongs to the best of the industry, outperforming 81.35% of the companies in the same industry.
In the last couple of years the Operating Margin of PRGO has grown nicely.
PRGO has a Gross Margin of 35.73%. This is comparable to the rest of the industry: PRGO outperforms 58.55% of its industry peers.
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.
PRGO has more shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 0.75, we must say that PRGO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.75, PRGO perfoms like the industry average, outperforming 55.96% of the companies in the same industry.
The Debt to FCF ratio of PRGO is 14.23, which is on the high side as it means it would take PRGO, 14.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PRGO (14.23) is better than 78.24% of its industry peers.
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 68.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 14.23 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.5
WACC7.24%
2.3 Liquidity
PRGO has a Current Ratio of 2.32. This indicates that PRGO is financially healthy and has no problem in meeting its short term obligations.
PRGO has a Current ratio of 2.32. This is comparable to the rest of the industry: PRGO outperforms 43.01% 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.
The Quick ratio of PRGO (1.24) is worse than 67.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
PRGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.43%, which is quite impressive.
PRGO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.68% yearly.
The Revenue has decreased by -2.31% in the past year.
The Revenue has been growing slightly by 2.48% on average over the past years.
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 8.93% yearly.
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 Year0%
Revenue Next 2Y1.08%
Revenue Next 3Y1.48%
Revenue Next 5Y1.76%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 7.93, the valuation of PRGO can be described as very cheap.
Based on the Price/Earnings ratio, PRGO is valued cheaper than 93.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.73. PRGO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.95, which indicates a rather cheap valuation of PRGO.
Based on the Price/Forward Earnings ratio, PRGO is valued cheaply inside the industry as 91.19% of the companies are valued more expensively.
PRGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRGO indicates a rather cheap valuation: PRGO is cheaper than 88.60% of the companies listed in the same industry.
PRGO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRGO is cheaper than 88.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.36 | ||
| EV/EBITDA | 8.39 |
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)0.37
PEG (5Y)N/A
EPS Next 2Y13.88%
EPS Next 3Y11.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.14%, PRGO is a good candidate for dividend investing.
PRGO's Dividend Yield is rather good when compared to the industry average which is at 4.08. PRGO pays more dividend than 96.89% of the companies in the same industry.
PRGO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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 2Y13.88%
EPS Next 3Y11.59%
23.07
+1.05 (+4.77%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners105.53%
Inst Owner Change0.07%
Ins Owners0.44%
Ins Owner Change13.34%
Market Cap3.17B
Analysts78
Price Target37.4 (62.12%)
Short Float %4.63%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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)6.28%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 6.95 | ||
| P/S | 0.73 | ||
| P/FCF | 12.36 | ||
| P/OCF | 8.66 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.39 |
EPS(TTM)2.91
EY12.61%
EPS(NY)3.32
Fwd EY14.39%
FCF(TTM)1.87
FCFY8.09%
OCF(TTM)2.66
OCFY11.55%
SpS31.47
BVpS32.53
TBVpS-11.42
PEG (NY)0.37
PEG (5Y)N/A
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%
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 Turnover0.43
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 | 0.75 |
F-Score5
WACC7.24%
ROIC/WACC0.5
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 Y21.22%
EPS Next 2Y13.88%
EPS Next 3Y11.59%
EPS Next 5Y8.93%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-0.86%
Revenue Next Year0%
Revenue Next 2Y1.08%
Revenue Next 3Y1.48%
Revenue Next 5Y1.76%
EBIT growth 1Y104.45%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year41.27%
EBIT Next 3Y15.82%
EBIT Next 5Y10.69%
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%