# Perrigo Company (PRGO.US)

Canonical: https://gigainvestors.com/s/PRGO

Analysis as of: 2026-10-16T07:31:19.312Z. Financial observations: FY2013–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $16.48 per share; close as of 2026-10-15.

Estimated value: low $9.50 per share, central $10.50 per share, high $11.82 per share. Buy at or below the central value $10.50 per share. Valuation as of 2026-10-16T07:31:19.312Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 7

- Operating margin variation: 8.54×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.38×

- FY2017: 0.12×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.06×

- FY2021: 0.10×

- FY2022: 0.02×

- FY2023: 0.03×

- FY2024: 0.03×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.3%

- ROIC, second-lowest year: 1.2%

- Typical minus recent gross margin: 1.2 pp

- Typical gross margin (annual median): 36.3%

- Recent gross margin (lower of latest and 3-year median): 35.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 1.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -22.3%

- FY2017: 8.3%

- FY2018: 3.5%

- FY2019: 3.1%

- FY2020: 4.7%

- FY2021: 6.7%

- FY2022: 1.2%

- FY2023: 2.6%

- FY2024: 2.2%

- FY2025: 6.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$708M

- Net income, five-year total: -$1.8B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -0.4 pp

- Working capital / revenue, final three-year average: 29.5%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $91M

- FY2022: $102M

- FY2023: $245M

- FY2024: $36M

- FY2025: -$1.2B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 3.5% vs 2.6%

- Per-share earnings: 0.84 to -1.25 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.5%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: -$10B

- Cumulative retained earnings: -$1.6B

- Diluted shares, 10-year annual growth: -0.5%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$2.09

- Per-share value, starting three-year median: $0.84

- Per-share value, ending three-year median: -$1.25

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 3.9%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: $3.4B

- Cumulative net income, 10 years: -$5.6B

- ROIC, first three-year median: 3.5%

- ROIC, last three-year median: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$28.00

- FY2017: $0.84

- FY2018: $0.95

- FY2019: $1.07

- FY2020: -$1.19

- FY2021: -$0.52

- FY2022: -$1.05

- FY2023: -$0.09

- FY2024: -$1.25

- FY2025: -$10.29

### accounting: fail

- restructuring or one-time charges in at least three of five years

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -19.5%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 22.9%

- Earnings backed by cash: Yes

- Accounting red flags: 2

- Goodwill and intangibles / equity: 2.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -33.7%

- FY2017: -5.0%

- FY2018: -4.2%

- FY2019: -2.1%

- FY2020: -7.0%

- FY2021: -2.2%

- FY2022: -4.1%

- FY2023: -3.9%

- FY2024: -5.5%

- FY2025: -19.5%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 63% since Oct 2021 · "PRGO Q4 Earnings Miss, Sales Beat, Stock Down on Weak 2026 View" (finance.yahoo.com, Feb 2026) · sales -2.8%

Story as of 2026-10-16T09:59:26.315Z; price observation 2026-10-15.

Price needs cash profits to grow 7.8% a year for ten years

- 2025-08-06: Emerson Electric slips, Carmax upgraded, Perrigo sales miss ([finance.yahoo.com](https://finance.yahoo.com/video/emerson-electric-slips-carmax-upgraded-181410128.html))

- 2025-11-06: Perrigo (PRGO) Falls to 52-Week Low on Weak Sales, Infant Formula Review ([finance.yahoo.com](https://finance.yahoo.com/news/perrigo-prgo-falls-52-week-170731206.html))

- 2026-02-27: PRGO Q4 Earnings Miss, Sales Beat, Stock Down on Weak 2026 View ([finance.yahoo.com](https://finance.yahoo.com/news/prgo-q4-earnings-miss-sales-170600926.html))

- 2026-05-06: Perrigo reaffirms 2026 outlook, targets $60M-$80M cost savings as results shift to 2H ([seekingalpha.com](https://seekingalpha.com/news/4587644-perrigo-reaffirms-2026-outlook-targets-60m-80m-cost-savings-as-results-shift-to-2h?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-05: Perrigo Swings To Earnings In Q2; Reaffirms FY26 Outlook; Shares Surge In Pre-market ([nasdaq.com](https://www.nasdaq.com/articles/perrigo-swings-earnings-q2-reaffirms-fy26-outlook-shares-surge-pre-market))

### Sales · FY2024–2025

sales -2.8%; source https://www.sec.gov/Archives/edgar/data/1585364/000158536426000009/prgo-20251231.htm; observed 2026-02-26.

- FY2016: $5.3B 

- FY2017: $4.9B 

- FY2018: $4.7B 

- FY2019: $3.9B 

- FY2020: $4.1B 

- FY2021: $4.1B 

- FY2022: $4.5B 

- FY2023: $4.7B 

- FY2024: $4.4B 

- FY2025: $4.3B 

### Gross margin · FY2025

gross margin 35.1%; source https://www.sec.gov/Archives/edgar/data/1585364/000158536426000009/prgo-20251231.htm; observed 2026-02-26.

- FY2016: 38.9% 

- FY2017: 40.0% 

- FY2018: 38.7% 

- FY2019: 37.0% 

- FY2020: 36.6% 

- FY2021: 34.2% 

- FY2022: 32.7% 

- FY2023: 36.1% 

- FY2024: 35.3% 

- FY2025: 35.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are USD 4.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1585364/000158536426000009/prgo-20251231.htm (filed 2026-02-26); FY2025: revenue 4253100000; grossProfit 1494500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PRGO.US: Perrigo Company plc provides over-the-counter health and wellness solutions in the United States, Europe, and internationally. The company operates through Consumer Self-Care Americas and Consumer Self-Care International segments. It offers upper respiratory products, including cough suppressants, expectorants, and sinus and allergy relief; nutrition products consisting of infant formulas and oral electrolyte beverages; digestive health products, including antacids, anti-diarrheal, and anti-heartburn; pain and sleep-aids products comprising pain relievers and fever reducers; and oral care products, which include toothbrushes, toothbrush replacement heads, floss, flossers, whitening products, and toothbrush covers. The company also offers healthy lifestyle products, such as smoking cessation and well-being products; skin care products consisting of dermatological care, scar management, lice treatment, and other products for various skin conditions; women's health products comprising feminine hygiene and contraceptives; vitamins, minerals, and supplements; and other miscellaneous self-care products. It sells its products under the Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid24HR, REACH, Rembrandt, Steripod, Opill, Solpadeine, Coldrex, Physiomer, NiQuitin, ACO, ellaOne, and Compeed brands. The company also offers contract manufacturing services. It sells its products through retail drug, supermarket, and mass merchandise chains; e-commerce stores; wholesalers; pharmacies; drug and grocery retailers; and para-pharmacies. The company was formerly known as Perrigo Company and changed its name to Perrigo Company plc in December 2013. Perrigo Company plc was founded in 1887 and is headquartered in Dublin, Ireland.

### Why customers stay

Margins ranged from 35.1% to 36.1% during 2023–25; it earns 3.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 36.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 35.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1585364/000158536426000009/prgo-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 35.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,-0.2230138204610585],[2017,0.0834829096530402],[2018,0.03510103893138486],[2019,0.030563865707937506],[2020,0.04690816470921183],[2021,0.06700492313875213],[2022,0.0122807605162053],[2023,0.026310815847749348],[2024,0.021976345940618456],[2025,0.06274018553219053]]; median 0.032832452319661184. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 88600000; cash acquisitions 400000; owner earnings 475800000. Growth capex plus acquisitions / owner earnings = 0.0008406893652795292.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 102600000; cash acquisitions 0; owner earnings 452000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 137700000; cash acquisitions 747700000; owner earnings 404900000. Growth capex plus acquisitions / owner earnings = 1.8466287972338848.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 170400000; cash acquisitions 168500000; owner earnings 51800000. Growth capex plus acquisitions / owner earnings = 3.252895752895753.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 152100000; cash acquisitions 0; owner earnings 91200000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 96400000; cash acquisitions 2011400000; owner earnings 101600000. Growth capex plus acquisitions / owner earnings = 19.79724409448819.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 101700000; cash acquisitions 0; owner earnings 245100000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 118300000; cash acquisitions 0; owner earnings 35800000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,83200000],[2017,91100000],[2018,104900000],[2019,112400000],[2020,123900000],[2021,129600000],[2022,142400000],[2023,149700000],[2024,152500000],[2025,159300000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PRGO.US SharesStats.PercentInsiders = 0.393 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 7.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.09848464103108923. Price 16.48; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.688995215311005 → FY2025 -8.529241877256318. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $83.19 per share

- 2016-11: $86.34 per share

- 2016-12: $83.23 per share

- 2017-01: $76.15 per share

- 2017-02: $74.77 per share

- 2017-03: $66.39 per share

- 2017-04: $73.94 per share

- 2017-05: $72.85 per share

- 2017-06: $75.52 per share

- 2017-07: $74.92 per share

- 2017-08: $78.96 per share

- 2017-09: $84.65 per share

- 2017-10: $80.99 per share

- 2017-11: $87.21 per share

- 2017-12: $87.16 per share

- 2018-01: $90.62 per share

- 2018-02: $81.46 per share

- 2018-03: $83.34 per share

- 2018-04: $78.14 per share

- 2018-05: $73.16 per share

- 2018-06: $72.91 per share

- 2018-07: $80.52 per share

- 2018-08: $76.51 per share

- 2018-09: $70.80 per share

- 2018-10: $70.30 per share

- 2018-11: $62.28 per share

- 2018-12: $38.75 per share

- 2019-01: $46.45 per share

- 2019-02: $48.70 per share

- 2019-03: $48.16 per share

- 2019-04: $47.92 per share

- 2019-05: $42.02 per share

- 2019-06: $47.62 per share

- 2019-07: $54.01 per share

- 2019-08: $46.78 per share

- 2019-09: $55.89 per share

- 2019-10: $53.02 per share

- 2019-11: $51.23 per share

- 2019-12: $51.66 per share

- 2020-01: $57.04 per share

- 2020-02: $50.69 per share

- 2020-03: $48.09 per share

- 2020-04: $53.30 per share

- 2020-05: $54.77 per share

- 2020-06: $55.27 per share

- 2020-07: $53.02 per share

- 2020-08: $52.30 per share

- 2020-09: $45.91 per share

- 2020-10: $43.87 per share

- 2020-11: $48.22 per share

- 2020-12: $44.72 per share

- 2021-01: $42.70 per share

- 2021-02: $40.36 per share

- 2021-03: $40.47 per share

- 2021-04: $41.63 per share

- 2021-05: $46.14 per share

- 2021-06: $45.85 per share

- 2021-07: $48.03 per share

- 2021-08: $40.95 per share

- 2021-09: $47.33 per share

- 2021-10: $45.15 per share

- 2021-11: $36.71 per share

- 2021-12: $38.90 per share

- 2022-01: $38.07 per share

- 2022-02: $35.52 per share

- 2022-03: $38.43 per share

- 2022-04: $34.30 per share

- 2022-05: $39.86 per share

- 2022-06: $40.57 per share

- 2022-07: $41.87 per share

- 2022-08: $37.42 per share

- 2022-09: $35.66 per share

- 2022-10: $40.28 per share

- 2022-11: $32.23 per share

- 2022-12: $34.09 per share

- 2023-01: $37.42 per share

- 2023-02: $37.69 per share

- 2023-03: $35.87 per share

- 2023-04: $37.19 per share

- 2023-05: $31.96 per share

- 2023-06: $33.95 per share

- 2023-07: $36.64 per share

- 2023-08: $35.00 per share

- 2023-09: $31.95 per share

- 2023-10: $27.64 per share

- 2023-11: $30.46 per share

- 2023-12: $32.18 per share

- 2024-01: $32.08 per share

- 2024-02: $26.26 per share

- 2024-03: $32.19 per share

- 2024-04: $32.66 per share

- 2024-05: $27.53 per share

- 2024-06: $25.68 per share

- 2024-07: $28.27 per share

- 2024-08: $29.10 per share

- 2024-09: $26.23 per share

- 2024-10: $25.63 per share

- 2024-11: $28.54 per share

- 2024-12: $25.71 per share

- 2025-01: $24.91 per share

- 2025-02: $29.00 per share

- 2025-03: $28.04 per share

- 2025-04: $25.72 per share

- 2025-05: $26.77 per share

- 2025-06: $26.72 per share

- 2025-07: $26.67 per share

- 2025-08: $23.74 per share

- 2025-09: $22.27 per share

- 2025-10: $20.74 per share

- 2025-11: $13.35 per share

- 2025-12: $13.92 per share

- 2026-01: $14.21 per share

- 2026-02: $13.22 per share

- 2026-03: $10.74 per share

- 2026-04: $11.84 per share

- 2026-05: $11.05 per share

- 2026-06: $10.39 per share

- 2026-07: $10.11 per share

- 2026-08: $14.64 per share

- 2026-09: $14.76 per share

- 2026-10: $16.48 per share

## Annual estimated value (USD per share)

- FY2018: low $39.27 per share, central $44.23 per share, high $50.84 per share

- FY2019: low $31.84 per share, central $35.95 per share, high $41.42 per share

- FY2020: low $35.12 per share, central $39.41 per share, high $45.12 per share

- FY2021: low $45.68 per share, central $50.14 per share, high $56.08 per share

- FY2022: low $12.06 per share, central $13.20 per share, high $14.71 per share

- FY2023: low $13.45 per share, central $14.63 per share, high $16.21 per share

- FY2024: low $11.10 per share, central $12.15 per share, high $13.56 per share

- FY2025: low $10.62 per share, central $11.64 per share, high $13.00 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1585364/000158536426000009/prgo-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.