Perrigo Co PLC

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PRGO : NYSE : Health Care
$76.21 up 0.7 | 0.93%
Today's Range: 75.21 - 76.28
Avg. Daily Volume: 1713000.0
07/21/17 - 4:02 PM ET

Financial Analysis


PERRIGO CO PLC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. PERRIGO CO PLC has strong liquidity. Currently, the Quick Ratio is 1.67 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 37.61% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)1194.01347.3
EBITDA ($mil)252.5287.4
EBIT ($mil)143.1177.7
Net Income ($mil)71.6-529.2


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)3100.6627.5
Total Assets ($mil)13979.419499.7
Total Debt ($mil)5794.36553.4
Equity ($mil)6067.89726.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin48.0647.71
EBITDA Margin21.1421.33
Operating Margin11.9813.19
Sales Turnover0.370.0
Return on Assets-24.40.0
Return on Equity-56.230.0
Debt Q1 FY17 Q1 FY16
Current Ratio2.061.36
Debt/Capital0.490.4
Interest Expense53.351.2
Interest Coverage2.683.47


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)143.4143.2
Div / share0.160.15
EPS0.5-3.7
Book value / share42.3167.92
Institutional Own % n/a n/a
Avg Daily Volume1731112.02009737.0

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. To use another comparison, its price-to-book ratio of 1.75 indicates a discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 10.50. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. 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 94.57   PRGO 14.12 Peers 19.80

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 14.94 Peers 16.42   PRGO NA Peers 0.66

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

PRGO is trading at a valuation on par with 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 1.75 Peers 10.50   PRGO -543.51 Peers 17.64

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 2.07 Peers 12.74   PRGO 280.56 Peers 6.26

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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