Perrigo Stock Analysis, Valuation (NYSE:PRGO)

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$84.99 $0.06 (0.07%) PRGO stock closing price Sep 25, 2017 (Closing)
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Perrigo
Updated on : Sep 25, 2017
previous close
PRGO 85 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical Products
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
10%
Operating Profit
Operating Margin:
-32.4%
Sector Average:
-2.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
3.27B
Debt/Equity Ratio:
 0.54
Compared to the industry
Cash Flow
Operating cash flow:
$90.8M
Net Income:
-$69.6M
Dividend Yield
PRGO dividend yield:
0.73%
PROS      CONS
FCF Margin
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PRGO PS :
2.4
Industry PS :
5.4
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-12%
Return on Equity:
-35.6%
Free Cash Flow Margin:
6.1%
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Perrigo Stock Analysis

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View Perrigo stock analysis video. This is our analyst opinion covering the buy and sell arguments for PRGO stock.

Perrigo Company plc Ordinary Shares Stock Rating 2.4/5

Our Perrigo stock opinion is based on fundamentals of the company. This Perrigo stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy PRGO stock?

  • The price to earnings multiple of 16.5 is attractive when compared with the industry average PE ratio of 22.8.
  • The lower PS ratio 2.4 for PRGO stock versus Medical Products industry average of 5.4 is a positive for the company.
  • Perrigo has a healthy FCF (Free Cash Flow) margin of 6.1%.

Should you sell PRGO stock?

  • Perrigo sales declined by -16.4% year on year in 2017 Q2.
  • Long term revenue growth of 10% over the past 5 years has been disappointing.
  • Perrigo reported an average operating margin of -32.4% over the Last Twelve Months (LTM).
  • Perrigo registered an average TTM Net loss of -51%.
  • Perrigo has a debt/equity ratio of  0.54, which is worse than the average in the Medical sector.
  • Perrigo's negative ROIC of -12% indicates operational inefficiency.
  • Perrigo has a negative ROE (Return On Equity) of -35.6%, indicating the company is not profitable.

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