Perrigo is a deeply discounted generic drug manufacturer trading at a forward price-to-earnings of 4.5 times and a PEG of 0.04, with analysts seeing 54% upside to target, but the company is in a confirmed death cross with declining revenue of negative 7%, no competitive moat identified, and quality scoring only 3.0 out of 10, making it a value trap candidate that must demonstrate earnings stabilization to justify the valuation.
Thesis pillars
- Revenue Decline Quality Concerns→Stable
- Extreme Discount Valuation↑Improving
- Death Cross Confirmed Downtrend↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 26, 2026· older than 90 days
Perrigo Company plc (PRGO) Stock Analysis
Healthcare · Drug Manufacturers - Specialty & Generic
Sell if holding. Engine safety override at $15.83: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: High short interest: 27%; Elevated put/call ratio: 3.00; Below-average business quality.
Perrigo Company plc is a pure-play self-care company selling over-the-counter health and wellness products, including store-brand and branded upper respiratory, digestive health, oral care, and infant formula items, primarily across North America and Europe through its Consumer... Read more
Sell if holding. Engine safety override at $15.83: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: High short interest: 27%; Elevated put/call ratio: 3.00; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.3/10, moderate confidence.
Passes 5/8 gates (positive momentum, clean insider activity, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Perrigo Company plc
About Perrigo Company plc
Perrigo drew 12.9% of its 2025 consolidated net sales from Walmart, its largest customer, with the top ten customers combining for 47%, while no single product line exceeds 5% of revenue across a self-care portfolio manufactured primarily in the U.S. alongside facilities in the U.K., Belgium, France, Germany, and China. The company operates through two segments, Consumer Self-Care Americas and Consumer Self-Care International, selling in North America and more than 30 countries, mostly in Europe.
Perrigo earns most of its revenue selling store-brand, private-label self-care products across categories such as cough/cold, digestive health, oral care, skin care, women's health, vitamins, and infant formula to national retail drug chains, supermarkets, mass merchandisers, and wholesalers who resell them below national-brand prices, alongside a smaller portfolio of owned brands including Opill, Mederma, and Compeed. Competitors on the store-brand side include Dr. Reddy's, LNK International, PL Developments, Aurobindo, and Sun Pharmaceuticals, while branded consumer-health rivals include Haleon, Kenvue, Procter & Gamble, and Reckitt Benckiser. The CSCA segment sells through U.S. and Canadian retail and e-commerce channels, while CSCI distributes through pharmacies, wholesalers, and para-pharmacies in more than 30 countries. Perrigo maintains several single-source supplier relationships for certain raw materials and dosage forms, chosen either because alternative sources are unavailable or because the arrangement offers regulatory, quality, or pricing advantages.
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Perrigo's regulatory exposure centers on infant formula and OTC reclassification. Following an FDA warning letter in August 2023 and additional inspection findings at its Wisconsin infant formula facility, Perrigo implemented new manufacturing protocols and incurred elevated production costs, and in March 2025 the U.S. Department of Health and Human Services launched Operation Stork Speed, a review that could tighten nutrient, testing, and labeling requirements while also expanding personal-importation competition. Separately, Irish regulators are conducting a formal review of non-prescription codeine products, a category that generated approximately $24 million in Irish sales in 2025, that could reclassify codeine to prescription-only status, with a final opinion expected in 2026 and potential knock-on reviews in other jurisdictions.
See also: Healthcare · Drug Manufacturers - Specialty & Generic
From Perrigo Company plc's most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated Nov 4, 2026Recent Developments — Perrigo Company plc
Latest news
- NEWS Perrigo Q3 2026 Earnings Call Transcript — benzinga Nov 4, 2026 neutral
- NEWS Perrigo Reports Third Quarter 2026 Financial Results — fiscal.ai Nov 4, 2026
- NEWS Perrigo Narrows FY2026 Adj EPS Guidance from $2.25-$2.55 to $2.25-$2.45 vs $2.18 Est; Lowers FY2026 Sales Guidance from — benzinga Nov 4, 2026 negative
- NEWS Perrigo Q3 Adj. EPS $0.60 Beats $0.50 Estimate, Sales $989.000M Beat $987.200M Estimate — benzinga Nov 4, 2026 positive
- NEWS Perrigo Company plc Named to Dividend Channel's S.A.F.E. 25 List — fiscal.ai Nov 3, 2026 positive
Latest item Nov 4, 2026 · Generated 2026-11-05T11:54:13Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerWalmart Inc.13%10-K Item 1: 'Sales to Walmart Inc. represented 12.9% and 11.9% of our consolidated net sales in 2025 and 2024, respectively.'
- MEDIUMCustomertop ten customers47%10-K Item 1: 'Our top ten customers accounted for 47% of our total consolidated net sales in 2025 and 2024.'
- HIGHSuppliersingle-source suppliers10-K Item 1A: 'We maintain several single-source supplier relationships, either because alternative sources are not available or because the relationship is advantageous'
Material Events(8-K, last 90d)
- 2026-06-07Item 5.02MEDIUMCEO and director Patrick Lockwood-Taylor resigned effective immediately after the Board determined his personal conduct was inconsistent with the Company's Code of Conduct; the Board named an interim President and CEO the same day. Company stated the resignation is unrelated to business, strategy, or financial reporting.SEC filing →
- 2026-06-30Item 5.02LOWBoard appointed Salman Amin and Omer Gajial as directors effective June 30, 2026, expanding the Board from 8 to 10 members. Amin joins Audit and Nominating/Governance committees; Gajial joins Talent and Compensation. Routine board expansion, no departures.SEC filing →
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Rating Breakdown
2 floor-breakers
Unprofitable operations — net margin -41.9%. Quality floor flags this regardless of sector context.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $15.83: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: High short interest: 27%; Elevated put/call ratio: 3.00; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $14.72. Score 5.3/10, moderate confidence.
Analyst target $15.30 reached (−3.3% from $15.83); no take-profit level is published. Prior stop was $14.72. Stop-loss: $14.72.
Concentration risk — Supplier: single-source suppliers; Target reached (-3.3% upside); Quality below floor (2.8 < 4.0).
Perrigo Company plc trades at a P/E of N/A (forward 6.7). TrendMatrix value score: 8.1/10. Verdict: Sell.
10 analysts rate PRGO, with a consensus score of 3.8/5. 3 analysts publish price targets averaging $18.
What does Perrigo Company plc do?Perrigo Company plc is a pure-play self-care company selling over-the-counter health and wellness products, including...
Perrigo Company plc is a pure-play self-care company selling over-the-counter health and wellness products, including store-brand and branded upper respiratory, digestive health, oral care, and infant formula items, primarily across North America and Europe through its Consumer Self-Care Americas and Consumer Self-Care International segments. It sells to major retail drug, supermarket, and mass-merchandise chains and wholesalers, with Walmart representing 12.9% of 2025 consolidated net sales and the top ten customers accounting for 47%.