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1. Company Snapshot

1.a. Company Description

Perrigo Company plc provides over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to prevent or treat conditions that can be self-managed.The company operates through two segments, Consumer Self-Care Americas and Consumer Self-Care International.The Consumer Self-Care Americas segment focuses primarily on the development, manufacture, marketing, and sale of store brand, self-care products in categories, including upper respiratory, pain and sleep-aids, digestive health, nutrition, vitamins, minerals and supplements, healthy lifestyle, skincare and personal hygiene, and oral self-care in the United States, Mexico, Canada, and South America.


The segment offers its products under the Prevacid 24HR, Good Sense, Zephrex D, ScarAway, Plackers, Rembrandt, Steripod, Firefly, REACH, Dr. Fresh, and Burt's Bees brand names.The Consumer Self-Care International segment develops, manufactures, markets, and distributes consumer self-care brands through a network of pharmacies, wholesalers, drug and grocery store retailers, and para-pharmacies in approximately 23 countries, primarily in Europe.The company also offers contract manufacturing services.


Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

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1.b. Last Insights on PRGO

Perrigo Company plc faced negative drivers over the recent three months. The company's Q3 earnings release revealed a 4.4% organic net sales decline, attributed to soft OTC category consumption and underperformance in businesses under review, including Oral Care and Infant Formula. Additionally, Perrigo initiated a strategic review of its infant formula business, which may lead to potential divestment. Investigations into possible securities law violations were announced by several law firms, including Holzer & Holzer, LLC, and Glancy Prongay & Murray LLP.

1.c. Company Highlights

2. Perrigo's Q3 2025 Earnings: A Mixed Bag

Perrigo's Q3 2025 financial performance was marked by a 4.4% decline in organic net sales, largely due to soft OTC category consumption and businesses under review. Gross profit declined by $30 million year-over-year to $417 million, while gross margin contracted by 110 basis points. However, the company's EPS beat estimates, coming in at $0.8 versus the expected $0.75. Operating profit and margin were partially offset by prudent cost management, demonstrating the effectiveness of Perrigo's cost-saving initiatives.

Publication Date: Nov -11

📋 Highlights
  • U.S. OTC Share Gains: Perrigo gained 6 consecutive months of share, outperforming a challenging market with 5 consecutive months of EU dollar share growth.
  • Cost Savings: Project Energize generated $163M in annual savings, exceeding the $140–$170M target, while supply chain reinvention aims for $150–$200M in annual benefits by year-end.
  • Organic Net Sales Decline: Q3 organic net sales fell 4.4%, driven by 1.6% from OTC softness and 2.8% from businesses under review (Oral Care, Infant Formula).
  • Margin Resilience: Despite sales declines, year-to-date organic operating income grew 13%, with gross margin up 60 bps due to infant formula recovery and cost discipline.
  • 2025 Outlook: Organic sales revised to -2% to -2.5% growth for 2025; EPS guidance updated to $2.70–$2.80 (5–9% growth) despite gross margin pressure to ~39%.

Revenue and Margin Analysis

The decline in organic net sales was primarily driven by the global OTC business, which was impacted by soft category consumption, and businesses under review, including Oral Care and Infant Formula. Despite this, Perrigo's store brand business gained share, and the company's supply chain reinvention is on track to deliver between $150 million and $200 million in benefits by the end of the year. As Eduardo Bezerra noted, "Our supply chain reinvention remains on track to deliver between $150 million and $200 million in benefits by the end of this year."

Guidance Update and Future Outlook

Perrigo updated its fiscal 2025 outlook, revising its organic net sales growth range to -2% to -2.5% due to softer-than-expected OTC category consumption. The company now expects gross margin of approximately 39% for the year and reaffirmed its operating margin guidance of around 15%. For 2026, Perrigo expects a stabilization in the OTC market, with flat to small percentage growth, and anticipates share gains in OTC and Infant Formula.

Valuation and Key Metrics

With a P/E Ratio of -38.1, P/B Ratio of 0.44, and Dividend Yield of 8.04%, Perrigo's valuation metrics indicate a potentially undervalued stock. The company's Free Cash Flow Yield stands at 13.84%, suggesting a strong ability to generate cash. However, the Net Debt / EBITDA ratio of -0.76 and ROIC of -0.87% raise concerns about the company's debt management and return on invested capital. Analysts estimate next year's revenue growth at -0.6%, which may impact the stock's performance.

3. NewsRoom

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ROSEN, A LEADING LAW FIRM, Encourages Perrigo Company plc Investors to Secure Counsel Before Important Deadline in Securities Class Action - PRGO

Dec -06

Source: newsfilecorp.com

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ROSEN, A RANKED AND LEADING FIRM, Encourages Perrigo Company plc Investors to Secure Counsel Before Important Deadline in Securities Class Action – PRGO

Dec -06

Source: globenewswire.com

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PRGO INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Perrigo Company plc Investors with Substantial Losses Have Opportunity to Lead Investor Class Action Lawsuit

Dec -06

Source: globenewswire.com

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PRGO Investors Have Opportunity to Lead Perrigo Company plc Securities Fraud Lawsuit

Dec -06

Source: prnewswire.com

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PRGO ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Perrigo Company plc Investors

Dec -05

Source: businesswire.com

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ROSEN, A LONGSTANDING LAW FIRM, Encourages Perrigo Company plc Investors to Secure Counsel Before Important Deadline in Securities Class Action - PRGO

Dec -05

Source: newsfilecorp.com

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Levi & Korsinsky Notifies Perrigo Company plc Investors of a Class Action Lawsuit and Upcoming Deadline - PRGO

Dec -05

Source: prnewswire.com

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UPDATE -- Lowey Dannenberg Notifies Perrigo Company plc (“Perrigo” or the “Company”) (NYSE: PRGO) Investors of Securities Class Action Lawsuit and Encourages Investors with more than $150,000 in Losses to Contact the Firm

Dec -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.14%)

6. Segments

Consumer Self-Care Americas

Expected Growth: 4.5%

Perrigo's Consumer Self-Care Americas segment growth of 4.5% is driven by increasing demand for self-care products, particularly in the OTC healthcare and vitamins, minerals, and supplements categories. Strong brand recognition, product innovation, and strategic acquisitions also contribute to growth. Additionally, the company's focus on e-commerce and digital marketing helps to expand its customer base and increase sales.

Consumer Self-Care International

Expected Growth: 3.5%

Perrigo's Consumer Self-Care International segment growth of 3.5% is driven by increasing demand for over-the-counter (OTC) healthcare products, expansion into emerging markets, and strategic acquisitions. Additionally, growing consumer awareness of self-care and wellness, coupled with an aging population, contribute to the segment's growth.

7. Detailed Products

Rx Pharmaceuticals

Perrigo's Rx Pharmaceuticals segment develops, manufactures, and markets prescription pharmaceuticals, including topical and oral products, for the treatment of various health conditions.

Consumer Self-Care

Perrigo's Consumer Self-Care segment offers a range of over-the-counter (OTC) healthcare products, including vitamins, minerals, and nutritional supplements.

Nutritionals

Perrigo's Nutritionals segment provides infant formula, baby food, and other nutritional products for infants and toddlers.

Active Pharmaceutical Ingredients (APIs)

Perrigo's API segment develops and manufactures active pharmaceutical ingredients for use in pharmaceutical products.

8. Perrigo Company plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Perrigo Company plc operates in the pharmaceutical industry, where substitutes are available, but the company's strong brand presence and product offerings mitigate the threat.

Bargaining Power Of Customers

Perrigo Company plc's customers are largely retailers and wholesalers, who have limited bargaining power due to the company's strong market position and diversified product portfolio.

Bargaining Power Of Suppliers

Perrigo Company plc relies on a diverse supplier base, which reduces the bargaining power of individual suppliers, but the company still faces some pressure from suppliers of critical raw materials.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant regulatory hurdles and capital requirements, which limits the threat of new entrants to Perrigo Company plc's business.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players, which increases the intensity of rivalry and competition for Perrigo Company plc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.07%
Debt Cost 7.11%
Equity Weight 53.93%
Equity Cost 7.11%
WACC 7.11%
Leverage 85.43%

11. Quality Control: Perrigo Company plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Dermapharm Holding

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Value: 5.4

Growth: 6.1

Quality: 5.8

Yield: 5.6

Momentum: 5.0

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Almirall

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Yield: 2.5

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Quality: 7.4

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Perrigo

A-Score: 4.6/10

Value: 7.5

Growth: 2.3

Quality: 2.3

Yield: 8.1

Momentum: 3.0

Volatility: 4.3

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Growth: 7.4

Quality: 5.5

Yield: 0.6

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A-Score: 2.9/10

Value: 5.1

Growth: 5.8

Quality: 5.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.44$

Current Price

13.44$

Potential

-0.00%

Expected Cash-Flows