Perrigo CoPRGO +2.85%44 Gross Margin % is 33.58% as of Mar. 2026, which is 8% below its 10-year median of 36.33. GuruFocus rates PRGO with a GF Score™ of 44/100 and a GF Value™ of $25.00 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 938 Drug Manufacturers companies, Perrigo Co ranks worse than 75.05% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Perrigo Co's Gross Profit for the
three
months ended in Mar. 2026 was $326 Mil. Perrigo Co's Revenue for the
three
months ended in Mar. 2026 was $969 Mil. Therefore, Perrigo Co's Gross Margin % for the quarter that ended in Mar. 2026 was 33.58%.
The historical rank and industry rank for Perrigo Co's Gross Margin % or its related term are showing as below:
PRGO'
s Gross Margin % Range Over the Past 10 Years
Min: 32.69 Med: 36.33 Max: 40.02
Current: 34.17
During the past 13 years, the highestGross Margin % of Perrigo Co was 40.02%. The lowest was 32.69%. And the median was 36.33%.
PRGO's Gross Margin % is ranked worse than 75.05% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs PRGO: 34.17
Perrigo Co had a gross margin of 33.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Perrigo Co was 0.00% per year.
Perrigo Co (NYSE:PRGO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Perrigo Co had a gross margin of 33.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Perrigo Co Gross Margin % Related Terms
Perrigo Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Perrigo Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PRGO vs AMLX, HROW, ANIP: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Perrigo Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Perrigo Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Perrigo Co (PRGO) has a Gross Margin % of 33.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Perrigo Co and its competitors. This is near median its historical median of 36.33. Over the past decade, Perrigo Co's Gross Margin % has ranged from 32.69 to 40.02. According to the industry distribution chart, Perrigo Co ranks #704 out of 938 companies in the Drug Manufacturers industry, placing it in the top 75.1%.
Is Perrigo Co's Gross Margin % too high?
Perrigo Co's current Gross Margin % of 33.58% is near median its 10-year median of 36.33. Over the past 10 years, this metric has ranged from a low of 32.69 to a high of 40.02. The Drug Manufacturers industry median Gross Margin % is 48.44. Perrigo Co's value of 33.58% is 30.7% below this industry median. Based on the distribution chart, Perrigo Co ranks #704 out of 938 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Perrigo Co has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Perrigo Co's Gross Margin % compare to AMLX and HROW?
According to the Drug Manufacturers industry distribution chart, Perrigo Co ranks #704 out of 938 companies for Gross Margin %. This places Perrigo Co in the lower half of its industry. The industry median Gross Margin % is 48.44. Perrigo Co's value of 33.58% is 30.7% below this benchmark. Historically, Perrigo Co's own Gross Margin % has ranged from 32.69 to 40.02 over the past decade. While the company's 10-year median is 36.33 vs. the industry median of 48.44, Perrigo Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perrigo Co's current Gross Margin % of 33.58% is 30.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Perrigo Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perrigo Co's current Gross Margin % is 33.58%, which is near median its own 10-year median of 36.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perrigo Co stock overvalued right now?
Based on GuruFocus' analysis, Perrigo Co (PRGO) is currently considered Possible Value Trap. The stock's GF Value™ is $25.00, compared to a current price of $9.76 — trading 61% below its estimated fair value. The current Gross Margin % is 33.58%, which is near median its 10-year median of 36.33 and 30.7% below the Drug Manufacturers industry median of 48.44. Perrigo Co's overall GF Score™ is 44/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Perrigo Co (PRGO), the current Gross Margin % is 33.58% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Perrigo Co (PRGO) Overvalued in 2026?
Based on GuruFocus' analysis, Perrigo Co stock appears to be undervalued.
The current stock price of $9.76 is trading 61% below its estimated GF Value™ of $25.00.
GuruFocus considers Perrigo Co to be Possible Value Trap.
Key valuation signals for PRGO:
Gross Margin %: 33.58% (near median its 10-year median of 36.33)
GF Value™: $25.00 vs. price of $9.76 (61% below fair value)
Industry Position: 30.7% below the Drug Manufacturers median (#704 of 938)
No single metric tells the full story. See the PRGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo has divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two-thirds of total sales), the firm's product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.
44GF Score
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