Perrigo (PRGO)
NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-09
$14.34-1.65%
Close 2026-09-09 · 1-day change
NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-09
Warn: Primary pillar under pressure — Improve operating cash flow from negative $114 million: OCF -$113.6M vs $0 target.
Perrigo aims to cut debt using €306 million from sales. It plans profit margins near 13% in 2026. The company keeps paying steady dividends of $0.29 per share. Cost savings from Project Energize target $167 million yearly.
Sales fell 7.2% last quarter and may keep shrinking. Operating cash flow turned negative in early 2026. CEO changes could hurt company focus and execution.
The market expects about 1% revenue decline next year. Our fair value near $46 suggests current price is fair. We see risk from weak sales and cash flow.
Breaks if: Proceeds from divestitures fall short of €300 million by Q1 2026
Streamline portfolio and reduce debt by divesting non-core businesses such as Dermacosmetics and reviewing Infant Formula and Oral Care businesses.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with elements of a cyclical nature. The company is currently experiencing volatility in management and earnings, which adds uncertainty to its long-term thesis.
The market seems to have priced in a level of fragility, with expectations slightly below peers. The valuation indicates that PRGO is considered cheap compared to its competitors, but there is a notable expectations gap.
Fundamentals are likely to remain neutral in the near term, as management has reaffirmed guidance despite recent sales declines. The execution of their Three-S plan may help stabilize market share, but risks remain elevated due to macroeconomic factors.
The thesis hinges on management's ability to execute their strategic priorities, particularly the Three-S plan and debt reduction efforts. Additionally, the performance of sector bellwethers and overall economic conditions will be crucial in determining future outcomes.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The company maintained its full-year 2026 guidance, which supports growth objectives. Recent earnings beats also reinforce this positive outlook. There are no new threats impacting the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 3 of last 3 quarters. Management completed the Dermacosmetics divestiture with upfront proceeds of approximately €306 million and applied about $359 million of cash proceeds toward debt reduction. The company continues strategic reviews of Infant Formula and Oral Care businesses to simplify the portfolio. This demonstrates consistent delivery on the priority of debt reduction through divestitures.
“Streamlined portfolio through completion of Dermacosmetics divestiture and continuing strategic reviews of Infant Formula and Oral Care businesses”
“Completed divestiture of Dermacosmetics business after quarter end; proceeds to support debt reduction”
“Announced agreement to divest Dermacosmetics business for up to €327 million”
Breaks if: Dividend per share falls below $0.29 in next 4 quarters
Continue returning capital to shareholders through consistent dividend payments.
Stated in 3 of last 3 quarters. Dividend payments have been consistently maintained at $0.29 per share from 2025-Q2 through 2026-Q1. This reflects management's ongoing commitment to returning capital to shareholders with stable dividend payments.
“Dividend per share was $0.29”
“Dividend per share was $0.29”
“Dividend per share was $0.29”
Breaks if: Operating cash flow remains negative through FY 2026
Breaks if: Operating margin falls below 12.5% in FY 2026
In the next 1 to 3 years, PRGO's performance will depend on its execution and external market conditions. Not investment advice.