Last Updated: 17 Sep 2024
Executive Summary
Perrigo Company PLC (PRGO) is a leading manufacturer of private label over-the-counter pharmaceuticals. The company has a strong track record of growth and profitability. However, the company's recent financial performance has been impacted by a number of factors, including the COVID-19 pandemic and rising input costs. Despite these challenges, Perrigo remains a well-positioned company with a strong balance sheet and a commitment to innovation.
Company Overview
Perrigo Company PLC is an American Irish registered manufacturer of private label over-the-counter pharmaceuticals. The company's products include a wide range of generic and branded over-the-counter medications, as well as vitamins, minerals, and supplements. Perrigo sells its products to a variety of customers, including retailers, wholesalers, and healthcare providers. The company has a global presence, with operations in over 100 countries.
Fundamental Analysis
Perrigo Company PLC's financial performance has been mixed in recent years. The company's revenue has declined in each of the past three years. In 2023, the company's revenue was $4.43 billion, down 1.1% from the previous year. The company's net income also declined in 2023, falling to $1.09 billion from $1.23 billion in 2022.
Despite the recent decline in revenue and net income, Perrigo Company PLC remains a profitable company. The company's gross profit margin was 32.9% in 2023, and its operating margin was 11.8%. The company also has a strong balance sheet, with $2.1 billion in cash and equivalents and $2.7 billion in total debt.
Technical Analysis
Perrigo Company PLC's stock price has been in a downtrend since early 2023. The stock price fell to a 52-week low of $24.58 in June 2023. The stock price has since rebounded, but it remains below its 50-day and 200-day moving averages.
The technical indicators are mixed for Perrigo Company PLC. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. However, the moving average convergence divergence (MACD) is below its signal line, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for Perrigo Company PLC is mixed. The company's financial performance has been weak in recent quarters, and the stock price has been in a downtrend. However, the company's technical indicators are mixed, and the stock price has rebounded from its 52-week low. Overall, the short-term outlook for Perrigo Company PLC is uncertain.
Long Term Outlook
The long-term outlook for Perrigo Company PLC is more positive. The company is a leader in the private label over-the-counter pharmaceutical market, and it has a strong track record of growth and profitability. The company is also well-positioned to benefit from the growing demand for generic and branded over-the-counter medications. Overall, the long-term outlook for Perrigo Company PLC is positive.
Analyst Recommendations
The majority of analysts have a buy rating on Perrigo Company PLC. The average analyst price target is $38.50, which represents a potential upside of 36.5% from the current stock price.
