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1. Company Snapshot

1.a. Company Description

Perrigo Company plc provides over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to prevent or treat conditions that can be self-managed.The company operates through two segments, Consumer Self-Care Americas and Consumer Self-Care International.The Consumer Self-Care Americas segment focuses primarily on the development, manufacture, marketing, and sale of store brand, self-care products in categories, including upper respiratory, pain and sleep-aids, digestive health, nutrition, vitamins, minerals and supplements, healthy lifestyle, skincare and personal hygiene, and oral self-care in the United States, Mexico, Canada, and South America.


The segment offers its products under the Prevacid 24HR, Good Sense, Zephrex D, ScarAway, Plackers, Rembrandt, Steripod, Firefly, REACH, Dr. Fresh, and Burt's Bees brand names.The Consumer Self-Care International segment develops, manufactures, markets, and distributes consumer self-care brands through a network of pharmacies, wholesalers, drug and grocery store retailers, and para-pharmacies in approximately 23 countries, primarily in Europe.The company also offers contract manufacturing services.


Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

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1.b. Last Insights on PRGO

Breaking News: Perrigo Company plc reported its Q4 earnings on February 27, 2026, missing EPS estimates. Despite beating sales expectations, the company's 2026 sales and profit outlook fell short of expectations due to persistent headwinds in its Infant Formula business. The weak 2026 view has raised concerns. Some analysts have recommended a hold rating, citing the need for further evaluation of the company's strategy to address Infant Formula challenges. Others have turned cautious, recommending a sell. A few maintain a buy rating, focusing on Perrigo's long-term growth prospects.

1.c. Company Highlights

2. Perrigo's 2025 Earnings: A Step Towards Transformation

Perrigo's 2025 financial performance reflected a significant step towards its transformation into a world-class consumer health leader. The company reported EPS of $2.75, in line with revised guidance, despite a challenging market environment. CORE Perrigo operating income grew 7%, with core EPS up 14%. The company's revenue growth was driven by solid market share gains across most categories, strengthened partnerships with retailers, and secured over $100 million in new distribution.

Publication Date: Mar -02

📋 Highlights
  • 2025 Performance:: Delivered EPS of $2.75, aligned with revised guidance, with CORE Perrigo operating income up 7% and core EPS growth of 14%.
  • 2026 Outlook:: Anticipates CORE organic net sales growth of -3.5% to 0.5% and CORE EPS of $2.25–$2.55, citing $0.60 EPS impact from plant underabsorption.
  • Operational Enhancements:: Launched a 2-year program targeting $80–100 million annualized pretax savings to streamline operations and boost competitiveness.
  • Capital Allocation:: Prioritizes debt reduction and shareholder returns, with $100 million in new distribution secured and plans to use Dermacosmetics sale proceeds for debt paydown.
  • Strategic Shifts:: Restructuring Infant Formula (dilutive to earnings), expanding in prevention categories (VMS, digestive wellness), and 60% of 2026 innovation slated for H2.

Segment Restructuring and 2026 Outlook

Perrigo is introducing new reporting segments: Self-care, Specialty Care, and Infant Formula, and expects to grow share ahead of the market in 2026. However, due to challenging market conditions, Perrigo expects CORE Perrigo organic net sales growth to range from -3.5% to 0.5% in 2026, with CORE EPS in the range of $2.25 to $2.55. The company anticipates a temporary but significant impact from plant underabsorption, resulting in an unfavorable EPS impact of approximately $0.60. Eduardo noted that 2026 performance will be driven by base business performance and cost savings actions.

Operational Enhancement Program

The company implemented a new 2-year operational enhancement program to further improve productivity, streamline operations, and enhance competitiveness, expecting annualized pretax savings of $80-100 million. This program is expected to drive growth through innovation, geographic expansion, and demand generation.

Valuation and Leverage

With a P/E Ratio of -1.28 and an EV/EBITDA of -1.66, Perrigo's valuation metrics indicate a challenging year. However, the company aims to keep net leverage flat year-over-year and expects to achieve a leverage ratio below 3x in the next 2 to 3 years. The Infant Formula business is dilutive to earnings, and the company is working on a strategic review, assessing all available options. Perrigo's Dividend Yield stands at 8.77%, indicating a relatively attractive return for shareholders.

Growth Prospects

The company expects growth to strengthen in some prevention categories, such as VMS and digestive wellness. Categories like cough/cold and certain subsegments of pain are doing poorly, but others like allergy and topical creams are performing well. Perrigo has made progress in its CORE sales categories, with growth in areas like OTC and pain management. Analysts estimate next year's revenue growth at 0.9%, indicating a slow but steady recovery.

3. NewsRoom

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PRGO Q4 Earnings Miss, Sales Beat, Stock Down on Weak 2026 View

Feb -27

Source: zacks.com

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Perrigo Company plc (PRGO) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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Perrigo (PRGO) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -26

Source: zacks.com

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Perrigo (PRGO) Q4 Earnings Lag Estimates

Feb -26

Source: zacks.com

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Perrigo Reports Fourth Quarter and Fiscal Year 2025 Financial Results From Continuing Operations

Feb -26

Source: prnewswire.com

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Unveiling Perrigo (PRGO) Q4 Outlook: Wall Street Estimates for Key Metrics

Feb -25

Source: zacks.com

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Wall Street Analysts See a 28.32% Upside in Perrigo (PRGO): Can the Stock Really Move This High?

Feb -24

Source: zacks.com

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High Yield Revival: 3 Cash-Rich Dividend Payers on Sale

Feb -20

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.14%)

6. Segments

Consumer Self-Care Americas

Expected Growth: 4.5%

Perrigo's Consumer Self-Care Americas segment growth of 4.5% is driven by increasing demand for self-care products, particularly in the OTC healthcare and vitamins, minerals, and supplements categories. Strong brand recognition, product innovation, and strategic acquisitions also contribute to growth. Additionally, the company's focus on e-commerce and digital marketing helps to expand its customer base and increase sales.

Consumer Self-Care International

Expected Growth: 3.5%

Perrigo's Consumer Self-Care International segment growth of 3.5% is driven by increasing demand for over-the-counter (OTC) healthcare products, expansion into emerging markets, and strategic acquisitions. Additionally, growing consumer awareness of self-care and wellness, coupled with an aging population, contribute to the segment's growth.

7. Detailed Products

Rx Pharmaceuticals

Perrigo's Rx Pharmaceuticals segment develops, manufactures, and markets prescription pharmaceuticals, including topical and oral products, for the treatment of various health conditions.

Consumer Self-Care

Perrigo's Consumer Self-Care segment offers a range of over-the-counter (OTC) healthcare products, including vitamins, minerals, and nutritional supplements.

Nutritionals

Perrigo's Nutritionals segment provides infant formula, baby food, and other nutritional products for infants and toddlers.

Active Pharmaceutical Ingredients (APIs)

Perrigo's API segment develops and manufactures active pharmaceutical ingredients for use in pharmaceutical products.

8. Perrigo Company plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Perrigo Company plc operates in the pharmaceutical industry, where substitutes are available, but the company's strong brand presence and product offerings mitigate the threat.

Bargaining Power Of Customers

Perrigo Company plc's customers are largely retailers and wholesalers, who have limited bargaining power due to the company's strong market position and diversified product portfolio.

Bargaining Power Of Suppliers

Perrigo Company plc relies on a diverse supplier base, which reduces the bargaining power of individual suppliers, but the company still faces some pressure from suppliers of critical raw materials.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant regulatory hurdles and capital requirements, which limits the threat of new entrants to Perrigo Company plc's business.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players, which increases the intensity of rivalry and competition for Perrigo Company plc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.07%
Debt Cost 7.11%
Equity Weight 53.93%
Equity Cost 7.11%
WACC 7.11%
Leverage 85.43%

11. Quality Control: Perrigo Company plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Dermapharm Holding

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Value: 4.6

Growth: 6.1

Quality: 5.9

Yield: 5.6

Momentum: 4.0

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Almirall

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Yield: 1.9

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Sobi

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Growth: 7.3

Quality: 5.5

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Perrigo

A-Score: 4.4/10

Value: 9.4

Growth: 2.3

Quality: 4.2

Yield: 8.8

Momentum: 0.0

Volatility: 2.0

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Siegfried Holding

A-Score: 4.3/10

Value: 4.6

Growth: 7.4

Quality: 5.5

Yield: 0.6

Momentum: 0.5

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A-Score: 2.9/10

Value: 6.0

Growth: 5.6

Quality: 5.7

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.34$

Current Price

12.34$

Potential

-0.00%

Expected Cash-Flows