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Also traded in: Germany, Israel

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 : 4/10

vs
industry
vs
history
Cash to Debt 0.06
PRGO's Cash to Debt is ranked lower than
94% of the 790 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.59 vs. PRGO: 0.06 )
Ranked among companies with meaningful Cash to Debt only.
PRGO' s Cash to Debt Range Over the Past 10 Years
Min: 0.01  Med: 0.22 Max: 18.37
Current: 0.06
0.01
18.37
Equity to Asset 0.50
PRGO's Equity to Asset is ranked lower than
70% of the 716 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 0.65 vs. PRGO: 0.50 )
Ranked among companies with meaningful Equity to Asset only.
PRGO' s Equity to Asset Range Over the Past 10 Years
Min: 0.34  Med: 0.5 Max: 0.75
Current: 0.5
0.34
0.75
F-Score: 4
Z-Score: 0.91
M-Score: -3.26
WACC vs ROIC
4.48%
-8.15%
WACC
ROIC
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 : 6/10

vs
industry
vs
history
Operating margin (%) -29.67
PRGO's Operating margin (%) is ranked lower than
83% of the 735 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 8.20 vs. PRGO: -29.67 )
Ranked among companies with meaningful Operating margin (%) only.
PRGO' s Operating margin (%) Range Over the Past 10 Years
Min: 6.81  Med: 14.38 Max: 19.18
Current: -29.67
6.81
19.18
Net-margin (%) -26.62
PRGO's Net-margin (%) is ranked lower than
82% of the 736 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.71 vs. PRGO: -26.62 )
Ranked among companies with meaningful Net-margin (%) only.
PRGO' s Net-margin (%) Range Over the Past 10 Years
Min: 2.78  Med: 7.52 Max: 12.66
Current: -26.62
2.78
12.66
ROE (%) -15.27
PRGO's ROE (%) is ranked lower than
78% of the 765 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 6.47 vs. PRGO: -15.27 )
Ranked among companies with meaningful ROE (%) only.
PRGO' s ROE (%) Range Over the Past 10 Years
Min: 1.32  Med: 15.81 Max: 25.93
Current: -15.27
1.32
25.93
ROA (%) -7.84
PRGO's ROA (%) is ranked lower than
75% of the 797 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.40 vs. PRGO: -7.84 )
Ranked among companies with meaningful ROA (%) only.
PRGO' s ROA (%) Range Over the Past 10 Years
Min: 0.76  Med: 5.83 Max: 11.14
Current: -7.84
0.76
11.14
ROC (Joel Greenblatt) (%) -91.68
PRGO's ROC (Joel Greenblatt) (%) is ranked lower than
82% of the 786 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 13.01 vs. PRGO: -91.68 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
PRGO' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 17.55  Med: 36.07 Max: 53.39
Current: -91.68
17.55
53.39
Revenue Growth (3Y)(%) -0.80
PRGO's Revenue Growth (3Y)(%) is ranked lower than
68% of the 610 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 5.20 vs. PRGO: -0.80 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
PRGO' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: -5.5  Med: 6.9 Max: 17.5
Current: -0.8
-5.5
17.5
EBITDA Growth (3Y)(%) 7.20
PRGO's EBITDA Growth (3Y)(%) is ranked lower than
53% of the 568 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 8.50 vs. PRGO: 7.20 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
PRGO' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: -25.1  Med: 22.45 Max: 40
Current: 7.2
-25.1
40
EPS Growth (3Y)(%) -39.60
PRGO's EPS Growth (3Y)(%) is ranked lower than
90% of the 535 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 6.70 vs. PRGO: -39.60 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
PRGO' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: -66.2  Med: 25.15 Max: 210.7
Current: -39.6
-66.2
210.7
» PRGO's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2015

PRGO Guru Trades in Q4 2015

Louis Moore Bacon 14,364 sh (New)
Ron Baron 261,138 sh (New)
Jerome Dodson 90,000 sh (New)
Paul Tudor Jones 6,400 sh (+262.81%)
David Rolfe 2,113,216 sh (+159.08%)
Robert Bruce 9,926 sh (unchged)
Mario Gabelli Sold Out
Richard Perry Sold Out
George Soros Sold Out
Ken Fisher 215,946 sh (-0.79%)
Ruane Cunniff 1,447,149 sh (-1.52%)
John Paulson 2,662,000 sh (-9.41%)
Keeley Asset Management Corp 24,726 sh (-12.01%)
Jim Simons 131,308 sh (-59.17%)
Paul Singer 177,915 sh (-60.63%)
Eric Mindich 843,318 sh (-71.77%)
Vanguard Health Care Fund 170,000 sh (-95.01%)
» More
Q1 2016

PRGO Guru Trades in Q1 2016

Manning & Napier Advisors, Inc 877,730 sh (New)
First Pacific Advisors 32,600 sh (New)
George Soros 6,400 sh (New)
Jerome Dodson 130,000 sh (+44.44%)
Ken Fisher 265,942 sh (+23.15%)
Keeley Asset Management Corp 26,348 sh (+6.56%)
Ruane Cunniff 1,461,985 sh (+1.03%)
Robert Bruce 9,926 sh (unchged)
Vanguard Health Care Fund Sold Out
Jim Simons Sold Out
Eric Mindich Sold Out
Louis Moore Bacon Sold Out
John Paulson 2,639,300 sh (-0.85%)
David Rolfe 2,077,826 sh (-1.67%)
Ron Baron 113,215 sh (-56.65%)
Paul Tudor Jones 2,100 sh (-67.19%)
Paul Singer 2,000 sh (-98.88%)
» More
Q2 2016

PRGO Guru Trades in Q2 2016

Jana Partners 481,077 sh (New)
Joel Greenblatt 19,855 sh (New)
David Einhorn 527,834 sh (New)
Murray Stahl 10,629 sh (New)
Manning & Napier Advisors, Inc 2,263,634 sh (+157.90%)
George Soros 10,800 sh (+68.75%)
Ken Fisher 339,967 sh (+27.84%)
Jerome Dodson 135,750 sh (+4.42%)
Robert Bruce 9,926 sh (unchged)
First Pacific Advisors Sold Out
Keeley Asset Management Corp Sold Out
David Rolfe Sold Out
Paul Singer Sold Out
Ron Baron Sold Out
Paul Tudor Jones Sold Out
Ruane Cunniff 1,315,805 sh (-10.00%)
John Paulson 12,500 sh (-99.53%)
» More
Q3 2016

PRGO Guru Trades in Q3 2016

Jim Simons 285,308 sh (New)
Ken Fisher 529,719 sh (+55.81%)
Manning & Napier Advisors, Inc 2,608,714 sh (+15.24%)
Ruane Cunniff 1,479,353 sh (+12.43%)
Robert Bruce 9,926 sh (unchged)
Jerome Dodson Sold Out
Jana Partners Sold Out
David Einhorn Sold Out
John Paulson Sold Out
George Soros Sold Out
Joel Greenblatt Sold Out
Murray Stahl 10,302 sh (-3.08%)
» More
» Details

Insider Trades

Latest Guru Trades with PRGO

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Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Specialty & Generic
Compare:OTCPK:MKGAY, OTCPK:MTZPY, OTCPK:ITHUF, OTCPK:SGIOF, OTCPK:APNHY, OTCPK:ESALY, NYSE:RDY, OTCPK:SFOSF, OTCPK:HLUYY, NYSE:MNK, NAS:OPK, NYSE:VRX, NAS:MYL, OTCPK:IPSEY, OTCPK:HYPMY, OTCPK:HKMPF, NYSE:TARO, NAS:NBIX, NYSE:PTHN, NAS:ENDP » details
Traded in other countries:PIG.Germany, PRGO.Israel,
Perrigo Co PLC develops, manufactures and distributes over-the-counter and generic prescription pharmaceuticals, nutritional products and active pharmaceutical ingredients.

Perrigo Co PLC was incorporated under the laws of Ireland on June 28, 2013. The Company develops, manufactures and distributes over-the-counter and generic prescription pharmaceuticals, nutritional products and active pharmaceutical ingredients. The Company is a manufacturer of OTC healthcare products for the store brand market. The Company has five reportable segments, aligned by type of product: Consumer Healthcare, Nutritionals, Rx Pharmaceuticals, API, and Specialty Sciences. The Consumer Healthcare segment is the store brand manufacturer of OTC pharmaceutical products. Its product categories include analgesics, cough/cold/allergy/sinus, gastrointestinal, smoking cessation and animal health; secondary product categories include feminine hygiene, diabetes care and dermatological care. The Nutritionals segment develops, manufactures, markets and distributes store brand infant and toddler formula products, infant and toddler foods, and vitamin, mineral and dietary supplement products to retailers, distributors and consumers in the U.S., Canada, Mexico and China. The Rx Pharmaceuticals segment develops, manufactures and markets a portfolio of generic prescription drugs for the U.S. market. it encompasses an array of topical dosage forms such as creams, ointments, lotions, gels, shampoos, foams, suppositories, sprays, liquids, suspensions, solutions and powders. The Company develops, manufactures, and markets API used by the generic drug industry and branded pharmaceutical companies. Certain of these ingredients are used in its own pharmaceutical products. The manufacturing of these API occurs in Israel. Its competitors in the U.S. Consumer Healthcare market are Dr. Reddy's Laboratories, Ltd., Actavis Inc., Ranbaxy Inc., PL Developments, Nipro Corporation, and LNK International, Inc. Abbott Laboratories, Mead Johnson Nutrition Co., Nestle S.A. (Gerber) and Danone Baby Nutrition. Tysabri competes with Avonex, marketed by Biogen Idec; Betaseron, marketed by Berlex (an affiliate of Bayer Schering Pharma AG) in the U.S. The Company is subject to various environmental laws and regulations.

Guru Investment Theses on Perrigo Co PLC

Jerome Dodson Comments on Perrigo - Nov 01, 2016

We sold Perrigo (NYSE:PRGO), a producer of store-brand generic drugs, due to our concerns that the generic pricing environment would get worse and that it would take longer than expected to improve the company’s European platform. Additionally, we sold credit card issuer American Express, because we believe its moat is narrowing. Intense competition for the company’s affluent cardholders is pushing up rewards costs and marketing expenses, thereby lowering the company’s return on capital.

From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund third-quarter 2016 commentary.

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Keeley Funds Comment on Perrigo Co. - Aug 03, 2016

Perrigo Co. (NYSE:PRGO) was the Fund’s leading detractor this quarter. The stock price dropped over 22% and cost the Fund 62 basis points in performance. The company focuses on the production of over-the-counter consumer goods and specialty pharmaceutical products. The stock price dropped after the former CEO departed to join Valeant Pharmaceuticals and the Board of Directors named a new CEO. The new CEO promptly reduced guidance, causing an increase in skepticism about management’s ability to integrate a recent European acquisition.



From Keeley Funds' All Cap Value Fund second quarter commentary.



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Jerome Dodson Comments on Perrigo - Jul 26, 2016

Four companies each contributed 20 basis points or more to the Fund’s return this quarter, but six subtracted 20 basis points or more from the return. Our worst performer was Perrigo (NYSE:PRGO), the leading producer of store-brand generic drugs, as its stock sank 29.1% from $127.93 to $90.67, cutting 69 basis points from the Fund’s return. Shares plummeted in April after longtime CEO Joe Papa resigned to become the CEO at Valeant Pharmaceuticals, and Perrigo lowered its 2016 guidance for the second time this year. The business has underperformed due to declining generic drug prices and weak growth from Omega, Perrigo’s European business. While we think John Hendrickson, Perrigo’s new CEO, is the right person for the job given his strong operational background, we’re continuing to monitor the drug pricing environment.


From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.

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David Rolfe Comments on Perrigo - Jul 13, 2016

During the quarter, a surprising decline in Perrigo (NYSE:PRGO)’s normally staid generic prescription (Rx) business had the Company reduce full-year guidance by almost 15% in a late-April pre-earnings release. In addition, the Company disclosed further write-downs and organizational changes in their nascent Branded Consumer Health (BCH) segment. Last, the Company announced the abrupt exit of long-time CEO, Joe Papa, who joined embattled Valeant Pharmaceutical. Immediately after this slew of disconcerting data points, we decided it prudent to liquidate our Perrigo stake.

We think that, at its core, Perrigo’s U.S. private label over-the-counter (OTC) business is intrinsically attractive, with nearly 70% market share and long-tailed revenue streams similar to that of a consumer staple. Private-label OTC was about 50% of the Company’s calendar 2015 revenue, and nearly 40% of consolidated operating profitability.

Another third of Perrigo’s profits was derived from their generic Rx business which we believed, until recently, was relatively defensible. We had seen that Perrigo’s strategy in generic Rx was to target drugs that had small addressable markets (often less than $50 million per year sales), but a good probability of eventually becoming approved for OTC. We hypothesized that Perrigo’s rivals were slow to copy Perrigo generic drugs either because the addressable market was not big enough, and/or because margins on OTC are dramatically lower than Rx, particularly for sub-scale OTC manufacturers. (Private-label OTC manufacturing, marketing, and distribution support capabilities are substantially different from prescription). In other words, we saw Perrigo’s substantial scale in private-label OTC as enabling the Company to realize unique economics in other parts of their business, namely generic Rx. Therefore, it was surprising to us when the Company cut its own guidance for this unit by double-digits and then offered little in the way of an outlook, despite having provided a steady outlook just a few months ago.

Further, Perrigo’s relatively new BCH platform continued to underperform. The company expended almost $4.5 billion in shareholder capital to acquire BCH’s core asset, Omega Pharmaceutical, in early 2015. We think this business will be ineffective as a growth platform, despite management’s previous optimism. The Company has commented that the highly entrepreneurial culture of Omega has made it difficult to scale this business through further bolt-on acquisitions. The scaling of acquisitions has been a key component of Perrigo’s long-term growth strategy, so we would not be surprised if there are more examples of unrealized value- destruction embedded in the Omega acquisition.

Finally, Mr. Joe Papa, now former CEO of Perrigo, abruptly exited the Company in late April.
 Mr. Papa’s exit came after having spent countless hours and money, with the Board of Directors’ encouragement and unanimous approval, fending off Mylan’s hostile bid on the basis of the following: Perrigo’s stock being undervalued, Mylan’s poor corporate governance record, and the risk of dis-synergies. We now find shares trading at about half the supposedly undervalued bid price; Mr. Papa’s departure to run a company with one of the worst corporate governance track records around, dis-synergies from the Omega acquisition; and a materially weakened generic Rx franchise. Importantly, we think that execution missteps are expected over the long term and therefore manageable (if only because we can handicap those hiccups by building in a valuation cushion). However, we do not invest in Companies that are not forthcoming with their investor base. We question the credibility of Perrigo’s remaining management team, as well as the Board of Directors. In our experience, fortunately, this has been thankfully rare.

From David Rolfe (Trades, Portfolio)'s second quarter 2016 Wedgewood Partners Client Letter.

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David Rolfe Comments on Perrigo - Jul 13, 2016

Perrigo (NYSE:PRGO) detracted –1.04% from the composite's absolute performance. A surprising decline in Perrigo’s normally staid generic prescription (Rx) business had the company reduce full-year guidance by almost 15% in a late April pre-earnings release. In addition, the Company disclosed further write-downs and organizational changes in their nascent Branded Consumer Health (BCH) segment. Last, the Company announced the abrupt exit of long-time CEO, Joe Papa, who joined embattled Valeant Pharmaceutical. Immediately after this slew of data points, we decided it prudent to liquidate our Perrigo stake.

From David Rolfe (Trades, Portfolio)'s second quarter 2016 Wedgewood Partners Client Letter.

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David Rolfe Comments on Perrigo - Apr 15, 2016

Perrigo (NYSE:PRGO)

Perrigo was a bottom performance contributor in the quarter, as the company reported a miss in its Branded Consumer Healthcare (BCH) segment. Management attributed the miss to execution issues and dedicated themselves to solving these problems over the coming quarters. We are willing to be patient; in the meantime, as we think that Perrigo’s core, private label OTC business is unique and should remain a healthy and sustainable source of internal capital.

Perrigo’s BCH segment was established after closing on the acquisition of Omega Pharma (Belgium) in March 2015. Mylan’s hostile bid for Perrigo was launched a few weeks later, and did not conclude until mid-November. We think that Perrigo’s BCH execution issues are understandable (if not predictable), as management was admittedly distracted by fending off Mylan’s hostile bid for the Company during much of 2015. Over the next several quarters, we expect BCH to post improved results, as it is better integrated with Perrigo’s corporate planning cycle.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners 1st Quarter 2016 Client Letter.

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Baron Funds Comments on Perrigo Company Plc - Jan 26, 2016

We re-established an investment in Perrigo Company Plc (NYSE:PRGO) during the quarter. Perrigo is a leading global over-the-counter (OTC) consumer goods and specialty pharmaceutical manufacturer. The company is the world’s largest manufacturer of store brand OTC health care products (such as store brand ibuprofen, the active ingredient in Advil), which are sold in virtually all leading U.S. drug retailers, including Walgreens and CVS. We previously owned Perrigo in the Fund. In early 2015, the company became the subject of a hostile takeover bid by Mylan N.V., a large manufacturer of generic pharmaceuticals. After Perrigo shareholders rejected Mylan’s proposal, Perrigo’s stock fell to a price that we believed was attractive in light of the company’s growth potential, competitive advantages and impressive management team.



We think Perrigo can generate sustainable mid-to-high single digit organic revenue growth, driven by a trend favoring store brand OTC drugs over national brands. Perrigo management estimates its business saves consumers more than $7.5 billion annually in their health care spending ($1 savings for every person in the world). This is because store brand OTC drugs are comparable in quality and effectiveness to the national brands but cost significantly less. Store brand OTC drugs also generate higher gross margins for retailers.



We think Perrigo’s business should also benefit as more prescription drugs move to OTC status. This trend is being driven by branded drug manufacturers seeking to capture ongoing product sales after the products lose patent protection. Perrigo has dominant market share in the store brand OTC drug business. We believe the company’s competitive advantages include long-standing customer relationships, low cost manufacturing and an ability to mass customize thousands of products and support retailers in marketing their store brands.



Perrigo’s management team has a strong record of creating shareholder value. They have a disciplined approach to deploying capital with a focus on meeting return on invested capital hurdles. We think management will continue to pursue acquisitions which should add to the company’s growth. These acquisitions could include products that Perrigo could add to its distribution network at high incremental margin, products in new categories, or companies in new geographies. In addition, in its defense against the Mylan hostile takeover attempt, Perrigo management committed to several shareholder value creating initiatives that are expected to add to earnings over the next few years.



From Baron Funds' Baron Asset Fund commentary for fourth quarter 2015.



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Wedgewood Partners Comments on Perrigo - Jan 18, 2016

Perrigo (NYSE:PRGO) is another position that we added to during the quarter. We had previously pared positions at materially higher levels after Mylan’s hostile bid for Perrigo became public information. Upon the recent expiration of the hostile offer, shares traded down to valuation levels not seen since 2008-2009, at which time we added back to our position. Management has guided to solid future growth, driven by the Company’s leading position in manufacturing and distributing private label over-the-counter (OTC) drugs to U.S. retailers, as well as its relatively new and rapidly expanding European OTC platform.



From Wedgewood Partners' fourth quarter 2015 client letter.



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Keeley Mid-Cap Value Fund Comments on Perrigo Co. - Sep 17, 2015

Another strong contributor during the quarter was Perrigo Co. (NYSE:PRGO) which climbed over 11 percent and added 24 basis points of performance to the Fund. The generic drug maker entered into an agreement with GlaxoSmithKline PLC to acquire a portfolio of over-the-counter drugs. Perrigo has already make acquisitions in the OTC business and this deal should allow them to capture an even larger share of the significant OTC market in Europe.



From the Keeley Mid-Cap Value Fund Second Quarter 2015 Commentary.



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Top Ranked Articles about Perrigo Co PLC

Jerome Dodson Comments on Perrigo Guru stock highlight
We sold Perrigo (NYSE:PRGO), a producer of store-brand generic drugs, due to our concerns that the generic pricing environment would get worse and that it would take longer than expected to improve the company’s European platform. Additionally, we sold credit card issuer American Express, because we believe its moat is narrowing. Intense competition for the company’s affluent cardholders is pushing up rewards costs and marketing expenses, thereby lowering the company’s return on capital. Read more...
Keeley Funds Comment on Perrigo Co. Guru stock highlight
Perrigo Co. (NYSE:PRGO) was the Fund’s leading detractor this quarter. The stock price dropped over 22% and cost the Fund 62 basis points in performance. The company focuses on the production of over-the-counter consumer goods and specialty pharmaceutical products. The stock price dropped after the former CEO departed to join Valeant Pharmaceuticals and the Board of Directors named a new CEO. The new CEO promptly reduced guidance, causing an increase in skepticism about management’s ability to integrate a recent European acquisition. Read more...
Jerome Dodson Comments on Perrigo Guru stock highlight
Four companies each contributed 20 basis points or more to the Fund’s return this quarter, but six subtracted 20 basis points or more from the return. Our worst performer was Perrigo (NYSE:PRGO), the leading producer of store-brand generic drugs, as its stock sank 29.1% from $127.93 to $90.67, cutting 69 basis points from the Fund’s return. Shares plummeted in April after longtime CEO Joe Papa resigned to become the CEO at Valeant Pharmaceuticals, and Perrigo lowered its 2016 guidance for the second time this year. The business has underperformed due to declining generic drug prices and weak growth from Omega, Perrigo’s European business. While we think John Hendrickson, Perrigo’s new CEO, is the right person for the job given his strong operational background, we’re continuing to monitor the drug pricing environment.
Read more...
David Rolfe Comments on Perrigo Guru stock highlight
Perrigo (NYSE:PRGO) detracted –1.04% from the composite's absolute performance. A surprising decline in Perrigo’s normally staid generic prescription (Rx) business had the company reduce full-year guidance by almost 15% in a late April pre-earnings release. In addition, the Company disclosed further write-downs and organizational changes in their nascent Branded Consumer Health (BCH) segment. Last, the Company announced the abrupt exit of long-time CEO, Joe Papa, who joined embattled Valeant Pharmaceutical. Immediately after this slew of data points, we decided it prudent to liquidate our Perrigo stake. Read more...
David Rolfe Comments on Perrigo Guru stock highlight
During the quarter, a surprising decline in Perrigo (NYSE:PRGO)’s normally staid generic prescription (Rx) business had the Company reduce full-year guidance by almost 15% in a late-April pre-earnings release. In addition, the Company disclosed further write-downs and organizational changes in their nascent Branded Consumer Health (BCH) segment. Last, the Company announced the abrupt exit of long-time CEO, Joe Papa, who joined embattled Valeant Pharmaceutical. Immediately after this slew of disconcerting data points, we decided it prudent to liquidate our Perrigo stake. Read more...
Ackman to Testify About Valeant Before Senate Valeant names Joseph Papa of Perrigo as new CEO
Activist investor Bill Ackman (Trades, Portfolio) will testify before the Senate Special Committee on Aging Wednesday regarding his involvement with Valeant Pharmaceuticals (NYSE:VRX), along with outgoing CEO Michael Pearson, just a day after Joseph Papa of Perrigo (NYSE:PRGO) was announced as Pearson’s replacement. Read more...
David Rolfe Comments on Perrigo Guru stock highlight
Perrigo (NYSE:PRGO)

Perrigo was a bottom performance contributor in the quarter, as the company reported a miss in its Branded Consumer Healthcare (BCH) segment. Management attributed the miss to execution issues and dedicated themselves to solving these problems over the coming quarters. We are willing to be patient; in the meantime, as we think that Perrigo’s core, private label OTC business is unique and should remain a healthy and sustainable source of internal capital.

Perrigo’s BCH segment was established after closing on the acquisition of Omega Pharma (Belgium) in March 2015. Mylan’s hostile bid for Perrigo was launched a few weeks later, and did not conclude until mid-November. We think that Perrigo’s BCH execution issues are understandable (if not predictable), as management was admittedly distracted by fending off Mylan’s hostile bid for the Company during much of 2015. Over the next several quarters, we expect BCH to post improved results, as it is better Read more...
David Rolfe Nearly Doubles His Stake in Perrigo Rolfe adds 1,297,542 shares of Perrigo to Wedgewood Partners' portfolio
Missouri native David Rolfe (Trades, Portfolio) became passionately interested with investing in 1984 after he signed up for an investments class at the University of Missouri, St Louis. Rolfe entered the class called Investments 334 and began to fall in love with the thought of investing in the stock market. He became so interested that he and another student alongside his professor Dr. Ken Lock founded “The Student Investment Club.” The club started out as a paper portfolio and it still continues to run today, competing against schools across the U.S. Read more...
Baron Funds Comments on Perrigo Company Plc Guru stock highlight
We re-established an investment in Perrigo Company Plc (NYSE:PRGO) during the quarter. Perrigo is a leading global over-the-counter (OTC) consumer goods and specialty pharmaceutical manufacturer. The company is the world’s largest manufacturer of store brand OTC health care products (such as store brand ibuprofen, the active ingredient in Advil), which are sold in virtually all leading U.S. drug retailers, including Walgreens and CVS. We previously owned Perrigo in the Fund. In early 2015, the company became the subject of a hostile takeover bid by Mylan N.V., a large manufacturer of generic pharmaceuticals. After Perrigo shareholders rejected Mylan’s proposal, Perrigo’s stock fell to a price that we believed was attractive in light of the company’s growth potential, competitive advantages and impressive management team. Read more...
Wedgewood Partners Comments on Perrigo Guru stock highlight
Perrigo (NYSE:PRGO) is another position that we added to during the quarter. We had previously pared positions at materially higher levels after Mylan’s hostile bid for Perrigo became public information. Upon the recent expiration of the hostile offer, shares traded down to valuation levels not seen since 2008-2009, at which time we added back to our position. Management has guided to solid future growth, driven by the Company’s leading position in manufacturing and distributing private label over-the-counter (OTC) drugs to U.S. retailers, as well as its relatively new and rapidly expanding European OTC platform. Read more...

Ratios

vs
industry
vs
history
Forward P/E 11.20
PRGO's Forward P/E is ranked higher than
70% of the 94 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 14.71 vs. PRGO: 11.20 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/B 1.42
PRGO's P/B is ranked higher than
75% of the 953 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.79 vs. PRGO: 1.42 )
Ranked among companies with meaningful P/B only.
PRGO' s P/B Range Over the Past 10 Years
Min: 1.27  Med: 2.98 Max: 5.96
Current: 1.42
1.27
5.96
P/S 2.19
PRGO's P/S is ranked higher than
58% of the 881 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.91 vs. PRGO: 2.19 )
Ranked among companies with meaningful P/S only.
PRGO' s P/S Range Over the Past 10 Years
Min: 0.95  Med: 2.54 Max: 6.17
Current: 2.19
0.95
6.17
PFCF 16.13
PRGO's PFCF is ranked higher than
61% of the 270 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 20.85 vs. PRGO: 16.13 )
Ranked among companies with meaningful PFCF only.
PRGO' s PFCF Range Over the Past 10 Years
Min: 10.67  Med: 24.81 Max: 83.99
Current: 16.13
10.67
83.99
POCF 13.89
PRGO's POCF is ranked higher than
57% of the 362 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 16.38 vs. PRGO: 13.89 )
Ranked among companies with meaningful POCF only.
PRGO' s POCF Range Over the Past 10 Years
Min: 8.67  Med: 18.94 Max: 30.33
Current: 13.89
8.67
30.33
EV-to-EBIT -10.67
PRGO's EV-to-EBIT is ranked lower than
99.99% of the 697 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 19.57 vs. PRGO: -10.67 )
Ranked among companies with meaningful EV-to-EBIT only.
PRGO' s EV-to-EBIT Range Over the Past 10 Years
Min: -11.6  Med: 20 Max: 1435.5
Current: -10.67
-11.6
1435.5
EV-to-EBITDA -18.49
PRGO's EV-to-EBITDA is ranked lower than
99.99% of the 725 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 15.60 vs. PRGO: -18.49 )
Ranked among companies with meaningful EV-to-EBITDA only.
PRGO' s EV-to-EBITDA Range Over the Past 10 Years
Min: -20.2  Med: 15.4 Max: 36.5
Current: -18.49
-20.2
36.5
Shiller P/E 65.36
PRGO's Shiller P/E is ranked lower than
65% of the 161 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 46.34 vs. PRGO: 65.36 )
Ranked among companies with meaningful Shiller P/E only.
PRGO' s Shiller P/E Range Over the Past 10 Years
Min: 39.8  Med: 87.85 Max: 192.79
Current: 65.36
39.8
192.79
Current Ratio 1.71
PRGO's Current Ratio is ranked lower than
66% of the 740 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.38 vs. PRGO: 1.71 )
Ranked among companies with meaningful Current Ratio only.
PRGO' s Current Ratio Range Over the Past 10 Years
Min: 1.1  Med: 2.32 Max: 4.05
Current: 1.71
1.1
4.05
Quick Ratio 1.13
PRGO's Quick Ratio is ranked lower than
71% of the 740 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.78 vs. PRGO: 1.13 )
Ranked among companies with meaningful Quick Ratio only.
PRGO' s Quick Ratio Range Over the Past 10 Years
Min: 0.76  Med: 1.32 Max: 3.56
Current: 1.13
0.76
3.56
Days Inventory 91.67
PRGO's Days Inventory is ranked higher than
63% of the 684 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 113.87 vs. PRGO: 91.67 )
Ranked among companies with meaningful Days Inventory only.
PRGO' s Days Inventory Range Over the Past 10 Years
Min: 92.5  Med: 99.08 Max: 108.46
Current: 91.67
92.5
108.46
Days Sales Outstanding 73.03
PRGO's Days Sales Outstanding is ranked higher than
53% of the 618 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 77.59 vs. PRGO: 73.03 )
Ranked among companies with meaningful Days Sales Outstanding only.
PRGO' s Days Sales Outstanding Range Over the Past 10 Years
Min: 57.67  Med: 66.47 Max: 101.65
Current: 73.03
57.67
101.65
Days Payable 53.15
PRGO's Days Payable is ranked lower than
65% of the 565 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 72.65 vs. PRGO: 53.15 )
Ranked among companies with meaningful Days Payable only.
PRGO' s Days Payable Range Over the Past 10 Years
Min: 50.89  Med: 64.83 Max: 94.36
Current: 53.15
50.89
94.36

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.69
PRGO's Dividend Yield is ranked lower than
82% of the 649 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.60 vs. PRGO: 0.69 )
Ranked among companies with meaningful Dividend Yield only.
PRGO' s Dividend Yield Range Over the Past 10 Years
Min: 0.22  Med: 0.4 Max: 1.15
Current: 0.69
0.22
1.15
Dividend Growth (3y) 14.10
PRGO's Dividend Growth (3y) is ranked higher than
62% of the 286 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 7.70 vs. PRGO: 14.10 )
Ranked among companies with meaningful Dividend Growth (3y) only.
PRGO' s Dividend Growth (3y) Range Over the Past 10 Years
Min: 0  Med: 8.6 Max: 49.8
Current: 14.1
0
49.8
Forward Dividend Yield 0.68
PRGO's Forward Dividend Yield is ranked lower than
82% of the 628 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.60 vs. PRGO: 0.68 )
Ranked among companies with meaningful Forward Dividend Yield only.
N/A
Yield on cost (5-Year) 1.29
PRGO's Yield on cost (5-Year) is ranked lower than
70% of the 785 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.23 vs. PRGO: 1.29 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
PRGO' s Yield on cost (5-Year) Range Over the Past 10 Years
Min: 0.41  Med: 0.75 Max: 2.15
Current: 1.29
0.41
2.15
3-Year Average Share Buyback Ratio -16.10
PRGO's 3-Year Average Share Buyback Ratio is ranked lower than
79% of the 434 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: -4.70 vs. PRGO: -16.10 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
PRGO' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -16.1  Med: 0.2 Max: 1.9
Current: -16.1
-16.1
1.9

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 0.98
PRGO's Price/Projected FCF is ranked higher than
83% of the 416 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 2.74 vs. PRGO: 0.98 )
Ranked among companies with meaningful Price/Projected FCF only.
PRGO' s Price/Projected FCF Range Over the Past 10 Years
Min: 0.95  Med: 1.58 Max: 2.42
Current: 0.98
0.95
2.42
Price/Median PS Value 0.87
PRGO's Price/Median PS Value is ranked higher than
74% of the 814 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.13 vs. PRGO: 0.87 )
Ranked among companies with meaningful Price/Median PS Value only.
PRGO' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.23  Med: 0.59 Max: 2.19
Current: 0.87
0.23
2.19
Earnings Yield (Greenblatt) (%) -9.40
PRGO's Earnings Yield (Greenblatt) (%) is ranked lower than
83% of the 1015 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 3.38 vs. PRGO: -9.40 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
PRGO' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 0.1  Med: 5 Max: 8.8
Current: -9.4
0.1
8.8
Forward Rate of Return (Yacktman) (%) 6.16
PRGO's Forward Rate of Return (Yacktman) (%) is ranked lower than
53% of the 340 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 8.22 vs. PRGO: 6.16 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
PRGO' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: 1.8  Med: 8.4 Max: 35.7
Current: 6.16
1.8
35.7

More Statistics

Revenue (TTM) (Mil) $5,644
EPS (TTM) $ -10.48
Beta0.69
Short Percentage of Float3.84%
52-Week Range $79.72 - 152.36
Shares Outstanding (Mil)143.37

Analyst Estimate

Jun16 Jun17 Jun18 Jun19
Revenue (Mil $) 5,456 5,718 6,067 6,247
EPS ($) 7.11 7.63 8.37 8.54
EPS w/o NRI ($) 7.11 7.63 8.37 8.54
EPS Growth Rate
(3Y to 5Y Estimate)
5.86%
Dividends Per Share ($) 0.55 0.52 0.56
» More Articles for PRGO

Headlines

Articles On GuruFocus.com
Jerome Dodson Comments on Perrigo Nov 01 2016 
Jerome Dodson Goes 2 for 2 in 3rd Quarter Oct 17 2016 
5 of the Worst Stocks to Invest In Aug 18 2016 
Keeley Funds Comment on Perrigo Co. Aug 03 2016 
KEELEY All Cap Value Fund 2nd Quarter Commentary Aug 03 2016 
Jerome Dodson Comments on Perrigo Jul 26 2016 
Jerome Dodson's Parnassus Fund 2nd Quarter Commentary Jul 26 2016 
David Rolfe Comments on Perrigo Jul 13 2016 
David Rolfe Comments on Perrigo Jul 13 2016 
David Rolfe's Wedgewood Partners 2nd Quarter 2016 Client Letter Jul 12 2016 

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