PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
NYSE:PRGO - New York Stock Exchange, Inc. - IE00BGH1M568 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PRGO. PRGO was compared to 195 industry peers in the Pharmaceuticals industry. PRGO has a medium profitability rating, but doesn't score so well on its financial health evaluation. PRGO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally PRGO also has an excellent dividend rating.
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.
PRGO had negative earnings in each of the past 5 years.
In the past 5 years PRGO always reported a positive cash flow from operatings.
1.2 Ratios
PRGO has a better Return On Assets (-1.85%) than 80.00% of its industry peers.
The Return On Equity of PRGO (-4.13%) is better than 80.51% of its industry peers.
PRGO has a Return On Invested Capital of 3.66%. This is amongst the best in the industry. PRGO outperforms 81.03% 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 better Operating Margin (9.28%) than 81.54% of its industry peers.
PRGO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 36.38%, PRGO perfoms like the industry average, outperforming 58.97% of the companies in the same 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 | 9.28% | ||
| 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
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.
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
PRGO has an Altman-Z score of 0.84. 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 of 0.84. This is comparable to the rest of the industry: PRGO outperforms 58.97% of its industry peers.
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.
PRGO's Debt to FCF ratio of 20.03 is fine compared to the rest of the industry. PRGO outperforms 77.95% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that PRGO is somewhat dependend on debt financing.
PRGO has a worse Debt to Equity ratio (0.82) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 20.03 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.5
WACC7.34%
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.
PRGO has a Current ratio of 2.36. This is comparable to the rest of the industry: PRGO outperforms 42.56% of its industry peers.
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 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.60% 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.
PRGO shows a decrease in Revenue. In the last year, the revenue decreased by -4.84%.
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)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
The Earnings Per Share is expected to grow by 8.93% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 9.31, the valuation of PRGO can be described as reasonable.
Based on the Price/Earnings ratio, PRGO is valued cheaper than 92.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. PRGO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.05, the valuation of PRGO can be described as reasonable.
Based on the Price/Forward Earnings ratio, PRGO is valued cheaper than 87.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRGO to the average of the S&P500 Index (21.60), we can say PRGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGO is valued cheaper than 87.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRGO is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.13 | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PRGO 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
With a Yearly Dividend Yield of 4.37%, PRGO is a good candidate for dividend investing.
PRGO's Dividend Yield is rather good when compared to the industry average which is at 4.12. PRGO pays more dividend than 95.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, PRGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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.
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%
26.72
+0.18 (+0.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners105.67%
Inst Owner Change0.9%
Ins Owners0.42%
Ins Owner Change11.87%
Market Cap3.65B
Analysts78
Price Target37.4 (39.97%)
Short Float %3.85%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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)6.28%
PT rev (3m)6.28%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-15.24%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 8.05 | ||
| P/S | 0.84 | ||
| P/FCF | 20.13 | ||
| P/OCF | 12.16 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.41 |
EPS(TTM)2.87
EY10.74%
EPS(NY)3.32
Fwd EY12.43%
FCF(TTM)1.33
FCFY4.97%
OCF(TTM)2.2
OCFY8.22%
SpS31.77
BVpS31.98
TBVpS-10.8
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 | 0.84 |
F-Score5
WACC7.34%
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)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%