PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
USA - NYSE:PRGO - IE00BGH1M568 - Common Stock
21.93 USD
+0.23 (+1.06%)
21.93 USD
0 (0%)
PRGO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 valued quite cheap, while showing a decent growth score. This is a good combination! PRGO also has an excellent dividend rating.
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.
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
Looking at the Return On Assets, with a value of -0.80%, PRGO is in the better half of the industry, outperforming 78.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of -1.80%, PRGO is in the better half of the industry, outperforming 79.58% of the companies in the same industry.
With an excellent Return On Invested Capital value of 3.64%, PRGO belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
PRGO had an Average Return On Invested Capital over the past 3 years of 2.21%. This is significantly below the industry average of 15.45%.
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
Looking at the Operating Margin, with a value of 9.55%, PRGO belongs to the top of the industry, outperforming 81.68% of the companies in the same industry.
PRGO's Operating Margin has improved in the last couple of years.
PRGO has a Gross Margin of 35.73%. This is comparable to the rest of the industry: PRGO outperforms 59.69% 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
PRGO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PRGO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PRGO has been increased compared to 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 0.74, we must say that PRGO is in the distress zone and has some risk of bankruptcy.
PRGO has a Altman-Z score (0.74) which is in line with its industry peers.
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.
With a decent Debt to FCF ratio value of 14.23, PRGO is doing good in the industry, outperforming 77.49% of the companies in the same industry.
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 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 14.23 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.46
WACC7.92%
2.3 Liquidity
A Current Ratio of 2.32 indicates that PRGO has no problem at all paying its short term obligations.
The Current ratio of PRGO (2.32) is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 1.24, PRGO is doing worse than 69.63% of the companies in the same industry.
| 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.
PRGO shows a decrease in Revenue. In the last year, the revenue decreased by -2.31%.
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)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 8.85% yearly.
The Revenue is expected to grow by 1.28% on average over the next years.
EPS Next Y19.13%
EPS Next 2Y11.75%
EPS Next 3Y10.46%
EPS Next 5Y8.85%
Revenue Next Year-1.04%
Revenue Next 2Y-0.25%
Revenue Next 3Y0.51%
Revenue Next 5Y1.28%
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 7.54, the valuation of PRGO can be described as very cheap.
Based on the Price/Earnings ratio, PRGO is valued cheaply inside the industry as 93.19% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PRGO to the average of the S&P500 Index (27.77), we can say PRGO is valued rather cheaply.
A Price/Forward Earnings ratio of 6.86 indicates a rather cheap valuation of PRGO.
Based on the Price/Forward Earnings ratio, PRGO is valued cheaper than 92.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, PRGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 6.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGO is valued cheaply inside the industry as 91.10% of the companies are valued more expensively.
PRGO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRGO is cheaper than 89.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 8.33 |
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.
The decent profitability rating of PRGO may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y11.75%
EPS Next 3Y10.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.39%, PRGO is a good candidate for dividend investing.
The stock price of PRGO dropped by -22.86% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.88, PRGO pays a better dividend. On top of this PRGO pays more dividend than 97.91% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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.
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 2Y11.75%
EPS Next 3Y10.46%
21.93
+0.23 (+1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners105.83%
Inst Owner Change-0.12%
Ins Owners0.45%
Ins Owner Change7.9%
Market Cap3.02B
Analysts78
Price Target34.17 (55.81%)
Short Float %5.19%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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)-8.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 6.86 | ||
| P/S | 0.7 | ||
| P/FCF | 11.75 | ||
| P/OCF | 8.24 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.33 |
EPS(TTM)2.91
EY13.27%
EPS(NY)3.2
Fwd EY14.58%
FCF(TTM)1.87
FCFY8.51%
OCF(TTM)2.66
OCFY12.14%
SpS31.44
BVpS32.51
TBVpS-11.41
PEG (NY)0.39
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 | 0.74 |
F-Score5
WACC7.92%
ROIC/WACC0.46
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 Y19.13%
EPS Next 2Y11.75%
EPS Next 3Y10.46%
EPS Next 5Y8.85%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-0.86%
Revenue Next Year-1.04%
Revenue Next 2Y-0.25%
Revenue Next 3Y0.51%
Revenue Next 5Y1.28%
EBIT growth 1Y104.45%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year40.12%
EBIT Next 3Y15.03%
EBIT Next 5Y10.05%
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%