Perrigo Co PLC

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PRGO : NYSE : Health Care
$88.61 | %
Today's Range: 87.22 - 89.02
Avg. Daily Volume: 2,459,600
08/26/16 - 4:00 PM ET

Financial Analysis


PERRIGO CO PLC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PERRIGO CO PLC has weak liquidity. Currently, the Quick Ratio is 0.65 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.30% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1424.81071.6
EBITDA ($mil)377.9325.5
EBIT ($mil)225.3198.4
Net Income ($mil)-107.070.2


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)432.73616.1
Total Assets ($mil)19393.916460.7
Total Debt ($mil)5989.94801.7
Equity ($mil)10036.79715.2


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin49.9647.67
EBITDA Margin26.5230.37
Operating Margin15.8118.51
Sales Turnover0.280.25
Return on Assets-0.162.1
Return on Equity-0.323.56
Debt Q2 FY16 Q2 FY15
Current Ratio1.14.05
Debt/Capital0.370.33
Interest Expense46.526.0
Interest Coverage4.857.63


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)143.1140.8
Div / share0.130.11
EPS-0.740.51
Book value / share70.1469.0
Institutional Own % n/a n/a
Avg Daily Volume2440500.02635454.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.26 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 19.95. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, PERRIGO CO PLC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PRGO NM Peers 29.12   PRGO 12.41 Peers 21.09

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

PRGO's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PRGO is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
PRGO 11.51 Peers 15.13   PRGO NA Peers 0.56

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

PRGO is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PRGO 1.26 Peers 19.95   PRGO -110.11 Peers -21.31

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PRGO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, PRGO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PRGO 2.37 Peers 11.68   PRGO 28.25 Peers 5.54

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PRGO is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

PRGO has a sales growth rate that significantly exceeds its peers.

 

 

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