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Perrigo Company plc
NYSE: PRGO Healthcare Pharma 🔎 Screen
$1.9B
Market Cap
48.3
P/E
2.62
PEG
4.9%
ROCE
-38.7%
ROE
1.31
D/E
8.1%
OPM
-35.0%
% from 52W High
53
α RS
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Currency-adjusted total returns for PRGO including FX impact
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Ratio Health
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About

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 respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and oral electrolyte beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. The company also offers healthy lifestyle products, such as smoking cessation and well-being products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women’s health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; and other miscellaneous self-care products. It sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, and Compeed brands. The company also offers contract manufacturing services. It sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

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📊 MIXED Perrigo reports Q1 core EPS $0.40; reaffirms 2026 guidance; gains OTC store brand share.
Revenue & Profitability
Q1 2026 core net sales declined 8.3%; all-in net sales declined 7.2%. Core adjusted EPS was $0.40, and all-in adjusted diluted EPS was $0.43. Adjusted operating income declined in Self-Care but grew in Specialty Care. A non-cash goodwill impairment of $331 million was recorded. Cash from operating activities was an outflow of $114 million, CapEx was $14 million, and total debt stood at $3.6 billion.
Outlook
Management views 2026 as a transition year with results weighted to the second half. They expect sequential improvement driven by stabilizing consumption, lapping of prior-year manufacturing headwinds, cost savings, and innovation. However, they acknowledge risks from softer cough/cold incidence and retailer destocking, as well as a $10 million incremental cost from Middle East geopolitical developments. Full-year guidance was reaffirmed.
Growth Drivers
Key growth levers include consumer-centric innovation (expanding Compeed and new infant formula offerings), continued distribution gains, demand generation programs with top retailers, and targeted geographic expansion (only 5% of global households served). Early results show strong share gains: U.S. store brand OTC volume share up 270 bps in Q1, nicotine replacement therapy up 540 bps, and Opill growing 12% with e-commerce up 30%.
Balance Sheet & CapEx
Capital expenditures in Q1 2026 were $14 million. No specific future CapEx guidance was provided, but the company is investing in cost-saving initiatives (Operational Enhancement Program targeting $60–80 million in 2026) and innovation (e.g., Compeed portfolio expansion). Proceeds from the dermacosmetics divestiture (€306 million) will be used for debt reduction.
Margins
Core adjusted gross margin declined 160 bps to 39.2%, and all-in adjusted gross margin fell 340 bps to 37.6%, driven by lower sales volumes, manufacturing headwinds, and unfavorable mix. Core adjusted operating margin decreased 110 bps to 12.8%; all-in decreased 240 bps to 11.6%. Margins are expected to improve in the second half as volume recovers and cost savings from the Operational Enhancement Program ramp up.
Key Risks
Management highlighted several risks: softer cough and cold incidence caused a 3.5% core sales headwind, and retailer inventory destocking added another 3% headwind. Prior-year manufacturing volume headwinds are expected to reduce 2026 all-in EPS by $0.60, with $0.26 realized in Q1. Geopolitical tensions in the Middle East could add $10 million to costs. European macroeconomic pressures also weigh on consumption.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Second quarter results showed a 3.1% year-over-year decline in core net sales, but market share gains in both U.S. and Europe, driven by innovation and improved execution. Full-year 2026 outlook is reaffirmed, with sequential improvement expected in the second half.
Q1 2026 Q1 2026 2026-05-06
First quarter 2026 saw sales and margins pressured by weak cough/cold demand and retailer destocking, but market share gains and cost savings supported results. Full-year guidance is reaffirmed, with improvement expected in the second half as headwinds ease.
Q4 2025 Q4 2025 2026-02-26
Delivered strong share gains and EPS growth in 2025 despite market softness, with 2026 set as a transition year facing temporary headwinds but expecting improvement in the second half. Operational enhancements and portfolio streamlining continue, with a focus on innovation and cost savings.
Q3 2025 Q3 2025 2025-11-05
Sustained share gains in U.S. and European OTC categories offset soft market conditions, but weaker OTC consumption and slower Infant Formula recovery led to a downward revision of 2025 guidance. Strategic reviews of Infant Formula and Oral Care are underway, with a focus on deleveraging and portfolio optimization.
Q2 2025 Q2 2025 2025-08-06
Second quarter results showed flat organic net sales, margin pressure from divestitures and infant formula issues, but strong EPS and operating income growth YTD. The outlook for EPS and margins is reaffirmed, with growth expected to accelerate in the second half, driven by new OTC contracts and infant formula recovery.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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