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. There are concerns on the financial health of PRGO while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRGO. 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.
PRGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRGO has a Return On Assets of -1.85%. This is in the better half of the industry: PRGO outperforms 80.00% of its industry peers.
With an excellent Return On Equity value of -4.13%, PRGO belongs to the best of the industry, outperforming 80.51% of the companies in the same industry.
PRGO's Return On Invested Capital of 3.66% is amongst the best of the industry. PRGO outperforms 80.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRGO is significantly below the industry average of 14.70%.
The last Return On Invested Capital (3.66%) for PRGO is above the 3 year average (2.21%), which is a sign of increasing profitability.
| 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
With an excellent Operating Margin value of 9.28%, PRGO belongs to the best of the industry, outperforming 81.03% 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 (36.38%) which is in line with 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 | 9.28% | ||
| 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.
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.
The debt/assets ratio for PRGO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that PRGO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.84, PRGO perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of PRGO is 20.03, which is on the high side as it means it would take PRGO, 20.03 years of fcf income to pay off all of its debts.
PRGO has a better Debt to FCF ratio (20.03) than 77.44% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that PRGO is somewhat dependend on debt financing.
PRGO has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: PRGO underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 20.03 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.49
WACC7.47%
2.3 Liquidity
A Current Ratio of 2.36 indicates that PRGO has no problem at all paying its short term obligations.
PRGO's Current ratio of 2.36 is in line compared to the rest of the industry. PRGO outperforms 43.08% of its industry peers.
A Quick Ratio of 1.28 indicates that PRGO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.28, PRGO is not doing good in the industry: 67.69% of the companies in the same industry are doing better.
| 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.
The Revenue has decreased by -4.84% in the past 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)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
PRGO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.76% yearly.
PRGO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.27% yearly.
EPS Next Y20.89%
EPS Next 2Y13.97%
EPS Next 3Y11.77%
EPS Next 5Y8.76%
Revenue Next Year-0.15%
Revenue Next 2Y1.05%
Revenue Next 3Y1.52%
Revenue Next 5Y1.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PRGO is valuated reasonably with a Price/Earnings ratio of 9.33.
91.28% of the companies in the same industry are more expensive than PRGO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. 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.
PRGO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGO is valued cheaper than 86.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRGO indicates a rather cheap valuation: PRGO is cheaper than 82.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.17 | ||
| EV/EBITDA | 9.46 |
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)0.45
PEG (5Y)N/A
EPS Next 2Y13.97%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
PRGO has a Yearly Dividend Yield of 4.28%, which is a nice return.
Compared to an average industry Dividend Yield of 4.15, PRGO pays a better dividend. On top of this PRGO pays more dividend than 96.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PRGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
On average, the dividend of PRGO grows each year by 6.29%, which is quite nice.
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
The earnings of PRGO are negative and hence is the payout ratio. PRGO will probably not be able to sustain this dividend level.
The dividend of PRGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-86.25%
EPS Next 2Y13.97%
EPS Next 3Y11.77%
26.77
-0.36 (-1.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners102.47%
Inst Owner Change0.9%
Ins Owners0.35%
Ins Owner Change9.6%
Market Cap3.65B
Analysts76.36
Price Target35.19 (31.45%)
Short Float %3.84%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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)1.47%
EPS NQ rev (1m)-4.3%
EPS NQ rev (3m)-12.5%
EPS NY rev (1m)1.58%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)-3.75%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-4.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.05 | ||
| P/S | 0.84 | ||
| P/FCF | 20.17 | ||
| P/OCF | 12.18 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.46 |
EPS(TTM)2.87
EY10.72%
EPS(NY)3.33
Fwd EY12.42%
FCF(TTM)1.33
FCFY4.96%
OCF(TTM)2.2
OCFY8.21%
SpS31.77
BVpS31.98
TBVpS-10.8
PEG (NY)0.45
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
WACC7.47%
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 Y20.89%
EPS Next 2Y13.97%
EPS Next 3Y11.77%
EPS Next 5Y8.76%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-3.53%
Revenue Next Year-0.15%
Revenue Next 2Y1.05%
Revenue Next 3Y1.52%
Revenue Next 5Y1.27%
EBIT growth 1Y81.86%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year39.05%
EBIT Next 3Y16.52%
EBIT Next 5Y10.62%
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%