PERRIGO CO PLC (PRGO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRGO - IE00BGH1M568 - Common Stock
13.14 USD
-0.29 (-2.16%)
13.21 USD
+0.07 (+0.53%)
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
PRGO had positive earnings in the past year.
PRGO had a positive operating cash flow in the past year.
In the past 5 years PRGO always reported negative net income.
Each year in the past 5 years PRGO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.51%, PRGO is in the better half of the industry, outperforming 75.92% of the companies in the same industry.
The Return On Equity of PRGO (-1.16%) is better than 78.53% of its industry peers.
PRGO's Return On Invested Capital of 3.48% is amongst the best of the industry. PRGO outperforms 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 3 year average ROIC (2.21%) for PRGO is below the current ROIC(3.48%), indicating increased profibility in the last year.
| 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
Looking at the Operating Margin, with a value of 9.18%, 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's Gross Margin of 35.46% is in line compared to the rest of the industry. PRGO outperforms 58.64% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRGO is destroying value.
Compared to 1 year ago, PRGO has more shares outstanding
Compared to 5 years ago, PRGO has more shares outstanding
Compared to 1 year ago, PRGO has an improved debt to assets ratio.
2.2 Solvency
PRGO has an Altman-Z score of 0.64. 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 (0.64) which is comparable to the rest of the industry.
The Debt to FCF ratio of PRGO is 13.43, which is on the high side as it means it would take PRGO, 13.43 years of fcf income to pay off 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.
PRGO has a Debt to Equity ratio of 0.81. This is in the lower half of the industry: PRGO underperforms 71.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 13.43 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.44
WACC7.9%
2.3 Liquidity
PRGO has a Current Ratio of 2.51. This indicates that PRGO is financially healthy and has no problem in meeting its short term obligations.
PRGO has a Current ratio (2.51) which is in line with its industry peers.
A Quick Ratio of 1.44 indicates that PRGO should not have too much problems paying its short term obligations.
PRGO's Quick ratio of 1.44 is on the low side compared to the rest of the industry. PRGO is outperformed by 61.78% 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 Y10.47%
EPS Next 2Y6.87%
EPS Next 3Y6.83%
EPS Next 5Y6.23%
Revenue Next Year-4.16%
Revenue Next 2Y-2.37%
Revenue Next 3Y-1.07%
Revenue Next 5Y-0.03%
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 4.53, the valuation of PRGO can be described as very cheap.
PRGO's Price/Earnings ratio is rather cheap when compared to the industry. PRGO is cheaper than 97.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. PRGO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.49, the valuation of PRGO can be described as very cheap.
PRGO's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRGO is cheaper than 96.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, PRGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 4.49 |
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 93.72% 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 95.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 6.98 |
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)0.43
PEG (5Y)N/A
EPS Next 2Y6.87%
EPS Next 3Y6.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.60%, PRGO is a good candidate for dividend investing.
In the last 3 months the price of PRGO has falen by -41.00%. 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 5.65, 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 2.27, PRGO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
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
The earnings of PRGO are negative and hence is the payout ratio. PRGO will probably not be able to sustain this dividend level.
PRGO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-306.95%
EPS Next 2Y6.87%
EPS Next 3Y6.83%
13.14
-0.29 (-2.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners111.98%
Inst Owner Change17.3%
Ins Owners0.45%
Ins Owner Change3.1%
Market Cap1.81B
Revenue(TTM)4.28B
Net Income(TTM)-51.80M
Analysts76
Price Target19.72 (50.08%)
Short Float %8.66%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
Yearly Dividend1.12
Dividend Growth(5Y)6.29%
DP-306.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-38.95%
PT rev (3m)-42.29%
EPS NQ rev (1m)-9.63%
EPS NQ rev (3m)-23.24%
EPS NY rev (1m)-6.87%
EPS NY rev (3m)-7.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.25%
Revenue NY rev (1m)-3%
Revenue NY rev (3m)-3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.53 | ||
| Fwd PE | 4.49 | ||
| P/S | 0.42 | ||
| P/FCF | 6.66 | ||
| P/OCF | 4.81 | ||
| P/B | 0.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.98 |
EPS(TTM)2.9
EY22.07%
EPS(NY)2.92
Fwd EY22.25%
FCF(TTM)1.97
FCFY15.01%
OCF(TTM)2.73
OCFY20.78%
SpS31.11
BVpS32.31
TBVpS-9.62
PEG (NY)0.43
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 | 0.64 |
F-Score5
WACC7.9%
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 Y10.47%
EPS Next 2Y6.87%
EPS Next 3Y6.83%
EPS Next 5Y6.23%
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y1.86%
Revenue growth 5Y2.48%
Sales Q2Q%-4.06%
Revenue Next Year-4.16%
Revenue Next 2Y-2.37%
Revenue Next 3Y-1.07%
Revenue Next 5Y-0.03%
EBIT growth 1Y65.28%
EBIT growth 3Y-21.35%
EBIT growth 5Y6.28%
EBIT Next Year32.51%
EBIT Next 3Y11.8%
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.
What is the valuation status for PRGO stock?
ChartMill assigns a valuation rating of 9 / 10 to PERRIGO CO PLC (PRGO). This can be considered as Undervalued.
How profitable is PERRIGO CO PLC (PRGO) stock?
PERRIGO CO PLC (PRGO) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PERRIGO CO PLC (PRGO) stock?
The Price/Earnings (PE) ratio for PERRIGO CO PLC (PRGO) is 4.53 and the Price/Book (PB) ratio is 0.41.
What is the financial health of PERRIGO CO PLC (PRGO) stock?
The financial health rating of PERRIGO CO PLC (PRGO) is 3 / 10.