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Perrigo Company
(NYSE:PRGO)
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Rating:54Neutral
Price Target:
$11.00
▲(9.02% Upside)
Action:Reiterated
Date:08/05/26
PRGO scores 54 primarily due to significant income-statement weakness (shrinking revenue and large losses) despite positive free cash flow. Technicals are neutral-to-mildly supportive short-term but still below the long-term trend, while valuation benefits from a very high dividend yield but is constrained by loss-driven negative P/E. The latest earnings call was balanced—guidance was maintained and operational initiatives are progressing, but margin and EPS headwinds remain material; corporate events add uncertainty due to the CEO departure.
Positive Factors
Cash Generation
Sustained positive operating and free cash flow provides durable internal funding for dividends, capex, and debt reduction even while accounting earnings are weak. This cash-generation capacity supports strategic flexibility and funds the operational enhancement program without relying solely on external financing.
Negative Factors
Revenue Decline & Losses
A sustained decline in revenue combined with material operating and net losses signals durable execution and demand challenges. Shrinking top line constrains operating leverage, limits reinvestment capacity, and increases the reliance on nonrecurring actions to restore profitability over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating and free cash flow provides durable internal funding for dividends, capex, and debt reduction even while accounting earnings are weak. This cash-generation capacity supports strategic flexibility and funds the operational enhancement program without relying solely on external financing.
Read all positive factors
Perrigo Company (PRGO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.78B
Dividend Yield8.9%
Average Volume (3M)3.63M
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-4.18%
EPS Growth-2138.82%
CountryUS
Employees8,100
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-12.51
Shares Outstanding138,769,240
10 Day Avg. Volume2,634,189
30 Day Avg. Volume3,634,402
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.66
Price to Sales (P/S)0.45
P/FCF Ratio13.29
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$17.00Price Target Upside68.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.14
Revenue Forecast (FY)$4.05B
Perrigo Company Business Overview & Revenue Model
Company Description
Perrigo Company plc provides over-the-counter health and wellness solutions in the United States, Europe, and internationally. The company operates through Consumer Self-Care Americas and Consumer Self-Care International segments. It offers upper ...
How the Company Makes Money
Perrigo primarily makes money by selling consumer self-care products to retailers and other customers, with revenue largely driven by (1) private-label/store-brand OTC products and (2) branded consumer health products. In its private-label model, ...
Perrigo Company Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational progress and strategic actions against ongoing top-line and margin pressures. Positive indicators include market share gains, substantial service-level improvements, a recovering Infant Formula business (+23% sales, +$60M operating income), acceleration of a scalable innovation pipeline, targeted cost-savings ($80–$100M program) and the use of $359M divestiture proceeds to reduce debt. Offsetting these positives were a 3%+ decline in net sales, 250 basis points of gross margin compression, notable retailer destocking (≈1.8% headwind), specialty segment weakness and an expected ~$0.60 EPS headwind in 2026 from under-absorption. Management maintained full-year guidance and emphasized that results are weighted to a stronger second half, signaling cautious optimism but acknowledging remaining execution and demand risks.Positive Updates
Market Share Gains in U.S. and Europe
U.S. store brand OTC volumes grew 1.5% while the categories declined 1.1%, resulting in ~50 basis points of market share gain; key European brands grew 3.3% while category value declined 0.6%, delivering ~50 basis points of share gain. Management also noted an additional ~60 basis points gain in the most recent 4-week period in July.
Negative Updates
Top-line Declines
Core net sales declined 3.1% year-over-year and Core organic net sales declined 3.5%; all-in net sales declined 3.2%, driven by category softness, seasonal weakness and the Dermacosmetics divestiture.
Read all updates
Q2-2026 Updates
Positive
Negative
Market Share Gains in U.S. and Europe
U.S. store brand OTC volumes grew 1.5% while the categories declined 1.1%, resulting in ~50 basis points of market share gain; key European brands grew 3.3% while category value declined 0.6%, delivering ~50 basis points of share gain. Management also noted an additional ~60 basis points gain in the most recent 4-week period in July.
Read all positive updates
Company Guidance
Perrigo reiterated its full‑year 2026 outlook — maintaining Core and all‑in net sales, margin and EPS guidance and noting results are weighted to the second half — and said second‑half improvement is expected from innovation, distribution and demand‑generation, easing category comparisons and operational actions; Q2 metrics included Core net sales down 3.1% (Core organic -3.5%) and all‑in net sales down 3.2%, Core adjusted EPS $0.46 and all‑in adjusted EPS $0.50, Core adjusted gross margin down 250 bps to 37% (all‑in gross margin 35.6%), Core adjusted operating margin 13% (down 160 bps) and all‑in operating margin 12.2% (down 60 bps), while Infant Formula grew 23% and its operating income improved ~ $60M, Self‑Care all‑in operating income fell $15M (16.2%) and Specialty Care operating income declined ~$18M (~28%); management warned planned under‑absorption will negatively affect 2026 all‑in EPS by ~ $0.60 (with $0.26 in Q1 and $0.18 in Q2 recognized), but expects partial reduction in the second half plus benefits from an $80–100M operational enhancement program (by 2027), lower interest from applying the $359M Dermacosmetics proceeds mostly to debt (total divestiture proceeds since 2024 ≈ $600M), Q2 cash from operations $83M, CapEx $14M, dividends returned $40M, cash $400M, total debt $3.3B, updated diluted shares ~139.6M and a lowered full‑year effective tax rate estimate to ≈18% (from ≈20%), noting one‑time Q2 benefits of roughly $10M tariff recovery and $6M CEO‑transition OpEx.Perrigo Company Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
54
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.14B | 4.25B | 4.37B | 4.66B | 4.45B | 4.14B |
| Gross Profit | 1.38B | 1.49B | 1.54B | 1.68B | 1.46B | 1.42B |
| EBITDA | -1.22B | -797.90M | 433.00M | 525.00M | 355.50M | 695.90M |
| Net Income | -1.73B | -1.43B | -171.80M | -12.70M | -140.60M | -68.90M |
Balance Sheet | ||||||
| Total Assets | 7.61B | 8.54B | 9.65B | 10.81B | 11.02B | 10.43B |
| Cash, Cash Equivalents and Short-Term Investments | 399.70M | 531.60M | 558.80M | 751.30M | 600.70M | 1.86B |
| Total Debt | 3.29B | 3.97B | 3.62B | 4.07B | 4.32B | 3.69B |
| Total Liabilities | 5.09B | 5.60B | 5.33B | 6.04B | 6.18B | 5.27B |
| Stockholders Equity | 2.52B | 2.94B | 4.32B | 4.77B | 4.84B | 5.15B |
Cash Flow | ||||||
| Free Cash Flow | 175.00M | 145.10M | 244.60M | 303.80M | 210.90M | 4.20M |
| Operating Cash Flow | 251.80M | 238.50M | 362.90M | 405.50M | 307.30M | 156.30M |
| Investing Cash Flow | 277.30M | -75.40M | 78.80M | -77.50M | -1.96B | 1.28B |
| Financing Cash Flow | -578.80M | -220.50M | -611.00M | -187.20M | 421.60M | -178.70M |
Perrigo Company Technical Analysis
Positive
10.09
Price Trends
10.84
Positive
10.82
Positive
12.00
Positive
Market Momentum
0.67
Negative
67.37
Neutral
76.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRGO, the sentiment is Positive. The current price of 10.09 is below the 20-day moving average (MA) of 11.36, below the 50-day MA of 10.84, and below the 200-day MA of 12.00, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 67.37 is Neutral, neither overbought nor oversold. The STOCH value of 76.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRGO.
Perrigo Company Risk Analysis
Perrigo Company disclosed 2 risk factors in its most recent earnings report. Perrigo Company reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Perrigo Company Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $43.18B | 56.52 | 9.28% | ― | 4.33% | ― | |
60 Neutral | $5.52B | 36.48 | -326.75% | ― | 9.28% | 4917.17% | |
59 Neutral | $18.42B | -45.08 | -2.79% | 2.78% | 4.92% | 87.81% | |
57 Neutral | $4.51B | 13.74 | -216.13% | ― | 13.55% | 305.85% | |
56 Neutral | $2.74B | -25.12 | -10.42% | ― | 24.85% | -264.42% | |
54 Neutral | $1.78B | -1.04 | -55.97% | 11.50% | -4.18% | -2138.82% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PRGO
Perrigo Company
13.04
-8.18
-38.54%
VTRS
Viatris
16.23
6.00
58.71%
SUPN
Supernus Pharmaceuticals
48.27
5.28
12.28%
TEVA
Teva Pharmaceutical
36.77
18.71
103.60%
INDV
Indivior
39.01
15.59
66.57%
AMRX
Amneal Pharmaceuticals
18.15
8.89
96.00%
Perrigo Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Perrigo Reinstates Executive Severance Policy Amid CEO Transition
Neutral
Jul 6, 2026
On June 29, 2026, Perrigo reinstated its Executive Committee Severance Policy, which had previously been terminated in January 2020, to cover executive officers other than the interim and future chief executive. During a defined transition period ...
Business Operations and StrategyExecutive/Board Changes
Perrigo Company strengthens board with new independent directors
Positive
Jun 30, 2026
On June 30, 2026, Perrigo Company plc expanded its board of directors from eight to ten members and appointed seasoned consumer and retail executives Salman Amin and Omer Gajial as independent directors. Amin, a former CEO of pladis Global with pr...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Perrigo CEO Resigns; Board Appoints Interim Leadership
Negative
Jun 8, 2026
On June 7, 2026, Perrigo’s President and CEO Patrick Lockwood-Taylor resigned effective immediately from his executive roles and board seat after the board determined that certain personal conduct violated the company’s Code of Conduct...
Shareholder Meetings
Perrigo Shareholders Endorse Directors, Pay and Capital Flexibility
Positive
May 5, 2026
On April 30, 2026, Perrigo Company plc held its 2026 Annual General Meeting of Shareholders, at which shareholders elected all nominated directors to serve until the 2027 meeting, with each candidate receiving strong majority support. Shareholders...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.