PRGO Stock Risk & Deep Value Analysis
Perrigo Company PLC
DVR Score
out of 10
What You Need to Know About PRGO Stock
We analyzed Perrigo Company PLC using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran PRGO through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
PRGO Risk Analysis & Red Flags
What Could Go Wrong
Perrigo's ongoing negative net margins and declining revenue could persist if cost-cutting measures are insufficient to offset macro pressures and intense competition. This could lead to further multiple contraction, pressure on the dividend, and difficulty in executing its deleveraging strategy, ultimately diminishing shareholder value.
Risk Matrix
Overall
Aggressive
Financial
Medium
Market
High
Competitive
High
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Declining revenue (-2.5% YoY in Q4 2025)
- ⚠
Deeply negative net margin (-33.51%) reflecting ongoing losses
- ⚠
Workforce reduction (~7%) indicating operational distress and cost-cutting focus, not growth
- ⚠
Analyst consensus 'Reduce' with 2 'Sell' ratings
- ⚠
High dividend yield (10.7%) potentially signaling limited growth opportunities and capital being returned instead of reinvested for growth
Upcoming Risk Events
- 📅
Continued soft demand in OTC/infant nutrition segments
- 📅
Persistent currency headwinds and inflationary pressures impacting margins
When to Reconsider
- 🚪
Exit if quarterly revenue declines accelerate beyond -5% YoY consistently
- 🚪
Sell if free cash flow turns consistently negative for two consecutive quarters
- 🚪
Re-evaluate position if the quarterly dividend is cut, indicating financial strain
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Investment Thesis
Perrigo represents a deep value, turnaround play within the consumer self-care sector. The investment thesis relies on management's ability to successfully execute its deleveraging and cost-cutting initiatives, stabilize revenue, return to consistent profitability, and potentially divest non-core assets efficiently. The significant dividend yield offers income while investors await a potential multiple re-rating as the company demonstrates sustained operational improvements, rather than exponential growth.
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PRGO Price Targets & Strategy
12-Month Target
$19.33
Bull Case
$25.00
Bear Case
$8.50
Valuation Basis
Based on analyst median target of $19.33, reflecting a modest recovery to ~7x forward P/E on estimated FY26 EPS of $2.72.
Entry Strategy
Consider dollar-cost averaging on dips towards the $10-$11 range, aligning with recent price action and potential support zones.
Exit Strategy
Take profit at $19-$22. Stop loss below $10.00 if turnaround efforts falter or financial performance deteriorates further.
Portfolio Allocation
1-3% for conservative investors seeking a value turnaround play with dividend income; not suitable for aggressive growth portfolios.
Price Targets & Strategy
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Is PRGO Financially Healthy?
Valuation
P/E Ratio
20.90
Forward P/E
21.30
EV/EBITDA
12.50
PEG Ratio
0.85
Price/Book
2.50
Price/Sales
0.90
Profitability
Gross Margin
35.14%
Operating Margin
-26.39%
Net Margin
-33.51%
Return on Equity
-35.16%
Revenue Growth
-2.75%
EPS
$-10.36
Balance Sheet
Current Ratio
2.76
Quick Ratio
1.44
Debt/Equity
1.24
Total Debt
$2.10B
Cash & Equivalents
$1.80B
Cash Flow
Operating Cash Flow
$950.00M
Free Cash Flow
$620.00M
EBITDA
$1.40B
Other
Beta (Volatility)
0.53
Dividend Yield
10.16%
Does PRGO Have a Competitive Moat?
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Moat Trend
Stable
Moat Sources
3 Identified
Perrigo's moat derives primarily from its established brands in mature categories and its efficient supply chain for private label products. This provides a stable, but not expanding, competitive barrier against new entrants, but offers limited defense against large, diversified consumer health rivals or disruptive innovation.
Moat Erosion Risks
- •Intense price competition in private label and generic OTC markets
- •Changing consumer preferences or disruptive digital health trends bypassing traditional retail channels
PRGO Competitive Moat Analysis
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PRGO Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (likely low retail interest given the company's turnaround phase and lack of high-growth narrative)
Institutional Sentiment
Negative (1 Buy, 3 Hold, 2 Sell ratings, consensus 'Reduce'; Canaccord Genuity cut target, Weiss 'Sell')
Insider Activity (Form 4)
EVP & CFO Eduardo Guarita Bezerra exercised 6,369 RSUs into shares on 2026-04-02; EVP & CHRO Robert Willis exercised 2,070 RSUs on 2026-04-02. These are RSU exercises for compensation, not open-market purchases indicating conviction.
Options Flow
Normal options activity (no unusual options flow data was provided in the research)
Earnings Intelligence
Next Earnings
2026-05-06
Surprise Probability
Medium (Zacks revised Q1 2026 EPS estimate down, suggesting caution, but Q4 2025 beat revenue)
Historical Earnings Pattern
Historically, Perrigo's stock has shown mixed reactions to earnings, often influenced more by guidance and progress on strategic initiatives than by minor beats or misses on individual quarterly figures, given its ongoing turnaround.
Key Metrics to Watch
Competitive Position
Top Competitor
No specific competitor identified in research, but general consumer health/OTC players are strong.
Market Share Trend
Stable in core areas but faces intense competition and soft demand in some segments (e.g., infant nutrition). No specific market share gains reported.
Valuation vs Peers
Perrigo trades at a significant discount on P/S (0.35x vs. Pharmaceuticals sector median 4.59x), reflecting its negative net margin and revenue decline. Its negative P/E makes direct comparison difficult but signals deep underperformance.
Competitive Advantages
- •Strong brand recognition in specific OTC categories
- •Established retail partnerships and distribution network
- •Portfolio of essential self-care products with inelastic demand
Market Intelligence
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What Could Drive PRGO Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings report on 2026-05-06
- •Outcome of Infant Formula segment strategic review
Medium-Term (6-18 months)
- •Continued execution on cost-saving initiatives and workforce reduction benefits
- •Potential divestiture of non-core assets to reduce debt and improve focus
Long-Term (18+ months)
- •Strengthening of core self-care brands and market position through innovation
- •Shift in consumer preferences towards specific OTC categories targeted by Perrigo
Catalysts & Growth Drivers
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What's the Bull Case for PRGO?
- ✓
Consistent improvement in organic revenue growth (moving from negative to positive)
- ✓
Progress towards achieving positive net income and expanding operating margins
- ✓
Successful conclusion of the Infant Formula strategic review that enhances shareholder value
Bull Case Analysis
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How Perrigo Company PLC Makes Money
Perrigo Company PLC is a global consumer self-care company that develops, manufactures, markets, and distributes a diverse portfolio of over-the-counter (OTC) health and wellness products, as well as infant formula. The company primarily sells its products to retailers and wholesalers, offering both its own branded products and private label (store brand) equivalents. Its business model relies on leveraging strong brand recognition, efficient manufacturing, and extensive distribution networks to capture market share in essential consumer health categories.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Perrigo Company PLC (PRGO)?
As of April 18, 2026, Perrigo Company PLC has a DVR Score of 2.2 out of 10, placing it in the "Risk Trap" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Perrigo Company PLC?
Perrigo Company PLC's market capitalization is approximately $1.6B..
What is the risk level for PRGO stock?
Our analysis rates Perrigo Company PLC's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of PRGO?
Perrigo Company PLC currently has a price-to-earnings (P/E) ratio of 20.9. This is in line with broader market averages.
Does Perrigo Company PLC pay a dividend?
Yes, Perrigo Company PLC pays a dividend with a current yield of approximately 10.16%.
Is Perrigo Company PLC's revenue growing?
Perrigo Company PLC has reported revenue growth of -2.8%. Revenue has been declining, which warrants closer examination.
Is PRGO stock profitable?
Perrigo Company PLC has a profit margin of -33.5%. The company is currently unprofitable.
How often is the PRGO DVR analysis updated?
Our AI-powered analysis of Perrigo Company PLC is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 18, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for PRGO (Perrigo Company PLC) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.