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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.18
PRGO's Cash to Debt is ranked lower than
57% of the 750 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.39 vs. PRGO: 0.18 )
PRGO' s 10-Year Cash to Debt Range
Min: 0   Max: 18.37
Current: 0.18

0
18.37
Equity to Asset 0.62
PRGO's Equity to Asset is ranked higher than
67% of the 712 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 0.60 vs. PRGO: 0.62 )
PRGO' s 10-Year Equity to Asset Range
Min: 0.34   Max: 0.75
Current: 0.62

0.34
0.75
F-Score: 6
Z-Score: 2.80
M-Score: -1.81
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 19.18
PRGO's Operating margin (%) is ranked higher than
88% of the 713 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 9.34 vs. PRGO: 19.18 )
PRGO' s 10-Year Operating margin (%) Range
Min: -32.27   Max: 19.18
Current: 19.18

-32.27
19.18
Net-margin (%) 12.48
PRGO's Net-margin (%) is ranked higher than
83% of the 713 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.50 vs. PRGO: 12.48 )
PRGO' s 10-Year Net-margin (%) Range
Min: -34.47   Max: 12.66
Current: 12.48

-34.47
12.66
ROE (%) 18.95
PRGO's ROE (%) is ranked higher than
94% of the 716 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.00 vs. PRGO: 18.95 )
PRGO' s 10-Year ROE (%) Range
Min: -59.74   Max: 22.18
Current: 18.95

-59.74
22.18
ROA (%) 8.26
PRGO's ROA (%) is ranked higher than
87% of the 745 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.95 vs. PRGO: 8.26 )
PRGO' s 10-Year ROA (%) Range
Min: -20.7   Max: 10.64
Current: 8.26

-20.7
10.64
ROC (Joel Greenblatt) (%) 47.32
PRGO's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 735 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 14.63 vs. PRGO: 47.32 )
PRGO' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -56.69   Max: 49.7
Current: 47.32

-56.69
49.7
Revenue Growth (%) 15.30
PRGO's Revenue Growth (%) is ranked higher than
80% of the 549 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.10 vs. PRGO: 15.30 )
PRGO' s 10-Year Revenue Growth (%) Range
Min: -5.5   Max: 17.5
Current: 15.3

-5.5
17.5
EBITDA Growth (%) 26.10
PRGO's EBITDA Growth (%) is ranked higher than
88% of the 504 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.00 vs. PRGO: 26.10 )
PRGO' s 10-Year EBITDA Growth (%) Range
Min: -25.1   Max: 40.1
Current: 26.1

-25.1
40.1
EPS Growth (%) 24.60
PRGO's EPS Growth (%) is ranked higher than
85% of the 506 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.70 vs. PRGO: 24.60 )
PRGO' s 10-Year EPS Growth (%) Range
Min: -66.2   Max: 210.7
Current: 24.6

-66.2
210.7
» PRGO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

PRGO Guru Trades in Q1 2013

David Rolfe 822,635 sh (+40.27%)
John Keeley 38,023 sh (+35.1%)
Meridian Funds 279,600 sh (+14.73%)
Ken Fisher 585,242 sh (+7.04%)
Ruane Cunniff 1,736,607 sh (+0.49%)
Mariko Gordon 29,557 sh (unchged)
Paul Tudor Jones 1,800 sh (-21.74%)
Ron Baron 317,921 sh (-28.56%)
» More
Q2 2013

PRGO Guru Trades in Q2 2013

Jim Simons 12,070 sh (New)
Meridian Funds 482,100 sh (+72.42%)
David Rolfe 1,036,502 sh (+26%)
Paul Tudor Jones 2,200 sh (+22.22%)
Ron Baron 318,591 sh (+0.21%)
Ruane Cunniff 1,738,598 sh (+0.11%)
Mariko Gordon 29,513 sh (-0.15%)
Ken Fisher 580,562 sh (-0.8%)
John Keeley 35,323 sh (-7.1%)
» More
Q3 2013

PRGO Guru Trades in Q3 2013

George Soros 19,000 sh (New)
Steven Cohen 305,298 sh (New)
Jeremy Grantham 12,900 sh (New)
Jim Simons 453,270 sh (+3655.34%)
Paul Tudor Jones 3,700 sh (+68.18%)
David Rolfe 1,393,714 sh (+34.46%)
Ruane Cunniff 1,781,038 sh (+2.44%)
Ken Fisher 583,782 sh (+0.55%)
Mariko Gordon 29,473 sh (-0.14%)
John Keeley 34,857 sh (-1.32%)
Ron Baron 203,294 sh (-36.19%)
» More
Q4 2013

PRGO Guru Trades in Q4 2013

Robert Bruce 9,926 sh (New)
Eric Mindich 106,904 sh (New)
Louis Moore Bacon 2,131 sh (New)
David Rolfe 1,459,279 sh (+4.7%)
Jim Simons 471,810 sh (+4.09%)
George Soros Sold Out
Jeremy Grantham Sold Out
Steven Cohen Sold Out
Mariko Gordon 29,300 sh (-0.59%)
Ruane Cunniff 1,763,823 sh (-0.97%)
John Keeley 34,289 sh (-1.63%)
Paul Tudor Jones 3,600 sh (-2.7%)
Ken Fisher 499,419 sh (-14.45%)
Ron Baron 126,830 sh (-37.61%)
» More
» Details

Insider Trades

Latest Guru Trades with PRGO

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2013-12-31 Reduce -37.61%0.04%$125.11 - $156.88 $ 141.99-2%126830
George Soros 2013-12-31 Sold Out 0.03%$125.11 - $156.88 $ 141.99-2%0
Ron Baron 2013-09-30 Reduce -36.19%0.07%$116.83 - $134.23 $ 141.9914%203294
George Soros 2013-09-30 New Buy0.03%$116.83 - $134.23 $ 141.9914%19000
Meridian Funds 2013-06-30 Add 72.42%0.92%$113.14 - $121.16 $ 141.9920%482100
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Perrigo Company PLC

David Rolfe Comments on Perrigo - Jan 27, 2014

During the quarter, Perrigo (PRGO) announced strong September quarter adjusted earnings growth of 20%.  We say “adjusted” because the Company incurred what we believe are non-recurring charges related to the recent purchase of Elan Corporation, which is a branded-drug company domiciled in Ireland.  Upon the closing of this purchase, Perrigo has “re-domiciled” itself in Ireland, with an effective tax rate meaningfully below what they were subjected to in the U.S.  Given that the Company actively pursues a strategy of inorganic growth as much as it pursues organic growth - having acquired six new businesses over the past 18 months (including Elan) - we expect that this new tax structure should make future acquisitions, particularly those U.S. based businesses, much more attractive.  Further, Perrigo’s core business, which includes private-label over-the-counter (OTC) pharmaceuticals and infant formula, drove much of the year-over-year growth.  The Company’s unrivaled scale in manufacturing and marketing of store-branded offerings continues to enable retailers to mimic the value proposition of OTC pharmaceuticals and infant formula.  This “store-brand conversion” is a multi-year trend that we expect will continue for the foreseeable future as consumers continue to become more value-conscious, yet more comfortable with store-brand quality that Perrigo helps engineer. 

 

From David Rolfe (Trades, Portfolio)’s Wedgewood Partners Fourth Quarter 2013 Commentary.

Check out David Rolfe latest stock trades

Meridian Funds Comments on Perrigo - Aug 28, 2013

Perrigo (PRGO) is a global manufacturer of over-the-counter (OTC) store brand and generic prescription pharmaceuticals, infant formulas, nutritional products and active pharma ingredients. The company is the dominant player in the OTC drug market with the largest distribution network and broadest range of product offerings. The OTC store brands have increased their market share by about 1-2% annually at the expense of national name product given their superior value proposition to both the consumer and retailers. Perrigo has numerous growth drivers over the next few years including the continued penetration of OTC store brands and introduction of new product categories. The stock sells at a reasonable valuation, in our opinion, given the company's strong management team, financial returns and long-term growth prospects.

From Meridian Funds's commentary for the quarter ended June 30, 2013.


Check out Meridian Funds latest stock trades

Baron Funds Comments on Perrigo - Feb 06, 2013

Shares of Perrigo Co. (PRGO), the largest manufacturer of store brand, over-thecounter pharmaceutical products, fell after quarterly revenues in its Nutritionals segment, which includes private label infant formula and vitamins, fell short of expectations. We believe that the shortfall was explained by a combination of short term factors, and we are optimistic that the company's infant formula revenues are poised for strong growth, particularly in China, where its points of distribution are increasing.We are also encouraged by Perrigo's recent accretive acquisition of Sergeant's Pet Care, through which the company entered the market for private-label pet medications.

From Baron Funds' fourth quarter letter.


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Wedgewood Partners Comments on Perrigo - Aug 31, 2012

Perrigo (PRGO) positively contributed to performance during the quarter after the Company reported a 32% increase in adjusted income from continuing operations and subsequently received FDA approval for five new prescription and over-the-counter (OTC) pharmaceuticals. Over $15 billion in OTC pharmaceuticals will lose patent protection over the next several years and Perrigo, as the largest manufacturer of private-label, OTC pharmaceuticals, will have ample opportunity to provide its value-added services to retailers around the globe. During the quarter, shares of the company traded to valuation levels that were not as attractive as they have been in the past, so we trimmed positions in Perrigo.

From Tony Guerrerio's second quarter letter.

Check out David Rolfe latest stock trades

Top Ranked Articles about Perrigo Company PLC

David Rolfe Comments on Perrigo
During the quarter, Perrigo (PRGO) announced strong September quarter adjusted earnings growth of 20%.  We say “adjusted” because the Company incurred what we believe are non-recurring charges related to the recent purchase of Elan Corporation, which is a branded-drug company domiciled in Ireland.  Upon the closing of this purchase, Perrigo has “re-domiciled” itself in Ireland, with an effective tax rate meaningfully below what they were subjected to in the U.S.  Given that the Company actively pursues a strategy of inorganic growth as much as it pursues organic growth - having acquired six new businesses over the past 18 months (including Elan) - we expect that this new tax structure should make future acquisitions, particularly those U.S. based businesses, much more attractive.  Further, Perrigo’s core business, which includes private-label over-the-counter (OTC) pharmaceuticals and infant formula, drove much of the year-over-year growth.  The Company’s unrivaled scale in manufacturing and marketing of store-branded offerings continues to enable retailers to mimic the value proposition of OTC pharmaceuticals and infant formula.  This “store-brand conversion” Read more...
Weekly Insider Sells Highlight: ROC, PRGO, JCI, TEL, DISH
According to GuruFocus Insider Data, the largest insider sells during the past week were: Rockwood Holdings Inc., Perrigo Company, Johnson Controls Inc., TE Connectivity Ltd. and DISH Network Corp. Read more...
Three Companies Gain in Bargain Portfolio
Here's an update on three of the gaining companies held in the GuruFocus Guru Bargains Model Portfolio, begun in 2006 with an investment of $100,000. As of the last rebalance, the portfolio was up 35.25% versus the S&P500 at 21.03%. The Guru Bargains Portfolio is one strategy out of 14 offered by GuruFocus. Read more...
Meridian Funds Comments on Perrigo
Perrigo (PRGO) is a global manufacturer of over-the-counter (OTC) store brand and generic prescription pharmaceuticals, infant formulas, nutritional products and active pharma ingredients. The company is the dominant player in the OTC drug market with the largest distribution network and broadest range of product offerings. The OTC store brands have increased their market share by about 1-2% annually at the expense of national name product given their superior value proposition to both the consumer and retailers. Perrigo has numerous growth drivers over the next few years including the continued penetration of OTC store brands and introduction of new product categories. The stock sells at a reasonable valuation, in our opinion, given the company's strong management team, financial returns and long-term growth prospects. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 52.10
PRGO's P/E(ttm) is ranked lower than
53% of the 527 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 25.60 vs. PRGO: 52.10 )
PRGO' s 10-Year P/E(ttm) Range
Min: 13.36   Max: 60.38
Current: 52.1

13.36
60.38
P/B 2.20
PRGO's P/B is ranked higher than
70% of the 700 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.84 vs. PRGO: 2.20 )
PRGO' s 10-Year P/B Range
Min: 1.95   Max: 5.96
Current: 2.2

1.95
5.96
P/S 3.60
PRGO's P/S is ranked lower than
54% of the 717 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.95 vs. PRGO: 3.60 )
PRGO' s 10-Year P/S Range
Min: 0.95   Max: 4.17
Current: 3.6

0.95
4.17
PFCF 33.80
PRGO's PFCF is ranked higher than
58% of the 328 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 24.79 vs. PRGO: 33.80 )
PRGO' s 10-Year PFCF Range
Min: 10.63   Max: 86.68
Current: 33.8

10.63
86.68
EV-to-EBIT 35.70
PRGO's EV-to-EBIT is ranked lower than
55% of the 593 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 19.45 vs. PRGO: 35.70 )
PRGO' s 10-Year EV-to-EBIT Range
Min: 10.3   Max: 30.4
Current: 35.7

10.3
30.4
PEG 1.80
PRGO's PEG is ranked higher than
76% of the 309 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.80 vs. PRGO: 1.80 )
PRGO' s 10-Year PEG Range
Min: 0.67   Max: 2.21
Current: 1.8

0.67
2.21
Shiller P/E 46.80
PRGO's Shiller P/E is ranked lower than
51% of the 363 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 25.59 vs. PRGO: 46.80 )
PRGO' s 10-Year Shiller P/E Range
Min: 25   Max: 3968
Current: 46.8

25
3968

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.30
PRGO's Dividend Yield is ranked lower than
91% of the 418 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.38 vs. PRGO: 0.30 )
PRGO' s 10-Year Dividend Yield Range
Min: 0.22   Max: 1.23
Current: 0.3

0.22
1.23
Dividend Payout 0.13
PRGO's Dividend Payout is ranked higher than
87% of the 376 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 0.33 vs. PRGO: 0.13 )
PRGO' s 10-Year Dividend Payout Range
Min: 0.07   Max: 0.42
Current: 0.13

0.07
0.42
Dividend growth (3y) 12.90
PRGO's Dividend growth (3y) is ranked higher than
86% of the 235 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.50 vs. PRGO: 12.90 )
PRGO' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 49.8
Current: 12.9

0
49.8
Yield on cost (5-Year) 0.55
PRGO's Yield on cost (5-Year) is ranked lower than
81% of the 429 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.44 vs. PRGO: 0.55 )
PRGO' s 10-Year Yield on cost (5-Year) Range
Min: 0.41   Max: 2.27
Current: 0.55

0.41
2.27
Share Buyback Rate -0.60
PRGO's Share Buyback Rate is ranked higher than
82% of the 480 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: -2.70 vs. PRGO: -0.60 )
PRGO' s 10-Year Share Buyback Rate Range
Min: 1.7   Max: -9.8
Current: -0.6

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.20
PRGO's Price/DCF (Projected) is ranked higher than
79% of the 349 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.70 vs. PRGO: 1.20 )
PRGO' s 10-Year Price/DCF (Projected) Range
Min: 0.98   Max: 2.42
Current: 1.2

0.98
2.42
Price/Median PS Value 2.10
PRGO's Price/Median PS Value is ranked lower than
69% of the 675 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.10 vs. PRGO: 2.10 )
PRGO' s 10-Year Price/Median PS Value Range
Min: 0.31   Max: 2.23
Current: 2.1

0.31
2.23
Price/Peter Lynch Fair Value 2.10
PRGO's Price/Peter Lynch Fair Value is ranked lower than
54% of the 149 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.40 vs. PRGO: 2.10 )
PRGO' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.76   Max: 3.23
Current: 2.1

0.76
3.23
Earnings Yield (Greenblatt) 2.80
PRGO's Earnings Yield (Greenblatt) is ranked higher than
53% of the 595 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 4.80 vs. PRGO: 2.80 )
PRGO' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.8   Max: 9.8
Current: 2.8

2.8
9.8
Forward Rate of Return (Yacktman) 29.25
PRGO's Forward Rate of Return (Yacktman) is ranked higher than
94% of the 531 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.45 vs. PRGO: 29.25 )
PRGO' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.8   Max: 35.8
Current: 29.25

1.8
35.8

Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Specialty & Generic
Compare:TKPYY, TEVA, AGN, FRX, MRX » details
Traded in other countries:PGO.Germany
Perrigo Company was established in 1887. It is a healthcare supplier that develops, manufactures and distributes over-the-counter and generic prescription (Rx) pharmaceuticals, nutritional products, active pharmaceutical ingredients (API) and pharmaceutical and medical diagnostic products. The Company is a manufacturer of OTC pharmaceutical products for the store brand market. The Company has four reportable segments namely Consumer Healthcare, Nutritionals, Rx Pharmaceuticals and API. In addition, the Company also operates Israel Pharmaceutical and Diagnostic Products operating segment The Consumer Healthcare segment includes the Company's U.S., U.K. and Mexico operations supporting the sale of OTC pharmaceutical and nutritional products. Its product categories include analgesic, cough/cold/allergy/sinus, gastrointestinal, smoking cessation, first aid and vitamin and nutritional supplement products. The Nutritionals segment develops, manufactures, markets and distributes store brand infant and toddler formula products, infant and toddler foods, vitamin, mineral and dietary supplement ('VMS') products, and oral electrolyte solution ('OES') products to retailers, distributors and consumers mainly in the U.S., Canada, Mexico and China. The Rx Pharmaceuticals segment develops, manufactures and markets a portfolio of generic prescription drugs in the U.S. This portfolio is comprised of products of topicals including creams, ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquid suspensions and solutions. It develops manufactures and markets API used worldwide by the generic drug industry and branded pharmaceutical companies. Certain of these ingredients are used in its own pharmaceutical products. Its main manufacturing facilities are located in the U.S. and Israel. Among Perrigo's competitors in the topical generics market are Actavis U.S., Fougera, Paddock Laboratories, Sandoz, Taro Pharmaceutical, Teva Pharmaceutical, and Triax Pharmaceuticals, as well as brand-name pharmaceutical companies where the Company offers a generic equivalent. The Company is subject to various environmental laws and regulations.

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