Perrigo Co Plc

PRGO

Pharmaceutical Preparations

Mkt Cap

$3.725B

PE

-483.78

Debt

$4.066B

Cash

$658.5M

EV

$7.132B

FCF

$281.1M

Market Cap

$3.725B

P/E Ratio

-483.78

Debt

$4.066B

Cash

$658.5M

EV

$7.132B

FCF

$281.1M

Charts data: {"Earnings":[{"time":"2014-06-27","value":205300000},{"time":"2016-12-30","value":-4012800000},{"time":"2017-12-30","value":119600000},{"time":"2018-12-30","value":131000000},{"time":"2019-12-30","value":146100000},{"time":"2020-12-30","value":-162600000},{"time":"2021-12-30","value":-68900000},{"time":"2022-12-30","value":-140600000},{"time":"2023-12-30","value":-12700000}],"Sales":[{"time":"2014-06-27","value":4060800000},{"time":"2016-12-30","value":5280600000},{"time":"2017-12-30","value":4946200000},{"time":"2018-12-30","value":4731700000},{"time":"2019-12-30","value":4837400000},{"time":"2020-12-30","value":5063300000},{"time":"2021-12-30","value":4138700000},{"time":"2022-12-30","value":4451600000},{"time":"2023-12-30","value":4655600000}],"Net Margins":[{"time":"2014-06-27","value":0.05055654058313633},{"time":"2016-12-30","value":-0.7599136461765709},{"time":"2017-12-30","value":0.024180178723060126},{"time":"2018-12-30","value":0.027685609823107974},{"time":"2019-12-30","value":0.030202174721958075},{"time":"2020-12-30","value":-0.032113443801473344},{"time":"2021-12-30","value":-0.016647739628385724},{"time":"2022-12-30","value":-0.03158414951927397},{"time":"2023-12-30","value":-0.002727897585703239}],"Assets":[{"time":"2014-06-27","value":13880200000},{"time":"2016-12-30","value":13870100000},{"time":"2017-12-30","value":11628800000},{"time":"2018-12-30","value":10983400000},{"time":"2019-12-30","value":11301400000},{"time":"2020-12-30","value":11488400000},{"time":"2021-12-30","value":10425700000},{"time":"2022-12-30","value":11017300000},{"time":"2023-12-30","value":10809100000}],"Stockholders Equity":[{"time":"2014-06-27","value":8693700000},{"time":"2016-12-30","value":5958100000},{"time":"2017-12-30","value":6170600000},{"time":"2018-12-30","value":5668100000},{"time":"2019-12-30","value":5804100000},{"time":"2020-12-30","value":5655100000},{"time":"2021-12-30","value":5151700000},{"time":"2022-12-30","value":4842100000},{"time":"2023-12-30","value":4767900000}],"ROE":[{"time":"2014-06-27","value":0.0236148015229419},{"time":"2016-12-30","value":-0.6735032980312515},{"time":"2017-12-30","value":0.019382231873723788},{"time":"2018-12-30","value":0.02311180113265468},{"time":"2019-12-30","value":0.02517186127048121},{"time":"2020-12-30","value":-0.028752807200580006},{"time":"2021-12-30","value":-0.01337422598365588},{"time":"2022-12-30","value":-0.0290369880836827},{"time":"2023-12-30","value":-0.0026636464690954088}],"ROA":[{"time":"2014-06-27","value":0.04084955548190948},{"time":"2016-12-30","value":-0.14417343782669195},{"time":"2017-12-30","value":0.051441249312052836},{"time":"2018-12-30","value":0.021532494491687454},{"time":"2019-12-30","value":0.01812164864530058},{"time":"2020-12-30","value":0.010044914870652136},{"time":"2021-12-30","value":0.03936426331085682},{"time":"2022-12-30","value":0.007161464242600274},{"time":"2023-12-30","value":0.014052973883117003}]}

Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in Ireland, the United States, France, Belgium, China, the United Kingdom, Germany, Switzerland, Austria, Italy, Australia, Greece, and Spain. It operates through Consumer Self-Care Americas and Consumer Self-Care International segments. The Consumer Self-Care Americas segment develops, manufacture, and markets self-care products including upper respiratory, pain and sleep-aids, digestive health, nutrition, healthy lifestyle, skincare, women's health, and other products, as well as vitamins, minerals and supplements, and oral self-care in the United States and Canada. This segment offers its products under Burt's Bees, Compeed, Dr. Fresh, Firefly, Good Sense, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, and Steripod brands. Consumer Self-Care International segment comprises consumer self-care product categories outside the U.S. and Canada, including branded products in Europe and Australia, and store brand products in the United Kingdom and parts of Europe and Asia, which develops, manufactures, markets, and distributes consumer self-care brands through a network of drug and grocery store retailers, e-commerce stores, and para-pharmacies in more than 29 countries, primarily in Europe. In addition, the company offers contract manufacturing services. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

Sector

10-Q
9/30/23
10-Q
7/1/23
10-Q
4/1/23
10-K
12/31/22
10-Q
10/1/22
10-Q
7/2/22
10-Q
4/2/22
10-K
12/31/21
10-Q
10/2/21
10-Q
7/3/21
10-Q
4/3/21
10-K
12/31/20
10-Q
9/26/20
10-Q
6/27/20
10-Q
3/28/20
10-K
12/31/19
10-Q
9/28/19
10-Q
6/29/19
10-Q
3/30/19
10-K
12/31/18
10-Q
9/29/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Perrigo Co Plc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$281.1M	$239.7M	$204.5M	$174.4M	$148.7M	$126.8M	$108.2M	$92.27M	$78.69M	$67.11M	$57.24M	$572.4M
DCF		$208.5M	$154.6M	$114.7M	$85.04M	$63.06M	$46.77M	$34.69M	$25.72M	$19.08M	$14.15M	$141.5M
Value	$907.7M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -0.065%

Earnings Stability -84%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	06-2014	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5.1%	-76%	2.4%	2.8%	3%	-3.2%	-1.7%	-3.2%	-0.27%	-0.17%
ROA	4.1%	-14%	5.1%	2.2%	1.8%	1%	3.9%	0.72%	1.4%	0.45%
ROE	2.4%	-67%	1.9%	2.3%	2.5%	-2.9%	-1.3%	-2.9%	-0.27%	-0.16%

What is the average Net Margin?

The average Net Margin over the past 5 years is -0.42%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.92%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +1.84%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.12%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -0.43%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.79%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	06-2014	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	10.57	5.47	6.61	14.11	7.66	838.21	19.47	13.41	14.46
Debt Equity	0.37	0.97	0.54	0.57	0.58	0.63	0.68	0.85	0.85	0.87
MIN
Graham Stability	-	-	-	-	-	-120%	-180%	-	-	-180%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 14.46.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 25.16.

What is the Graham’s Stability?

Graham’s Stability measure stands at -1.81.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	-1.8%	-0.32%	-2.8%	4.6%	-1.8%
Net Income	-	-	-	-	2%
Stockholders Equity	-3.1%	-3.4%	-5.5%	-1.5%	1.8%
FCF	-8.1%	-9.1%	-13%	44%	290%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -0.32%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.76%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.99%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -3.4%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.84%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -9.13%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +294.42%.