Updated 3/13/25
Perrigo Company plc isn’t the kind of stock that makes headlines or sends analysts into a frenzy. And that’s kind of the point. Tucked into the consumer health space, this Dublin-based company has been around for more than a hundred years. Its focus? Over-the-counter healthcare products and self-care solutions—the kind of stuff you find in your medicine cabinet without thinking much about where it came from. But for investors chasing dependable income and some downside protection, that low-key positioning might be exactly what’s appealing.
Let’s take a closer look at what’s happening under the hood, especially for those who care more about dividend checks than big tech fireworks.
Recent Events
Perrigo hasn’t had the smoothest ride lately. Over the past twelve months, total revenue came in around $4.37 billion, but that figure is slightly down from the prior year. The company has also posted a net loss, which explains why some financial ratios are looking a little distorted right now.
That said, it’s not all gloom. Operationally, things still appear stable. The business is generating solid operating margins, and cash is still coming in the door. The market’s been less forgiving though—shares are down nearly 10% over the past year, lagging broader indices. Despite that, the dividend keeps showing up like clockwork, and in fact, it just went up.
Key Dividend Metrics
💰 Forward Dividend Yield: 4.15%
📆 Paid Quarterly
📈 Five-Year Average Yield: 2.82%
📊 Current Payout Ratio (earnings-based): An eye-popping 10,950%
🧮 Forward Dividend per Share: $1.16
📉 Trailing Dividend: $1.10
📅 Ex-Dividend Date: March 7, 2025
📬 Payment Date: March 25, 2025
Dividend Overview
Right now, Perrigo is paying out a yield that’s not just solid—it’s significantly higher than what it’s averaged in recent years. A 4.15% yield doesn’t just beat the S&P 500 average, it puts PRGO on the radar for anyone building a dividend-driven portfolio.
The company hasn’t missed a beat when it comes to paying that dividend. In fact, the recent bump from $1.10 to $1.16 suggests management feels confident about the direction they’re heading. That kind of consistency and gradual growth is something income investors prize.
Dividend Growth and Safety
There’s no denying that payout ratio looks outrageous if you’re just going by net earnings. But that’s not the whole story.
Perrigo’s free cash flow paints a much healthier picture. Over the past year, it’s produced roughly $425 million in free cash flow, which easily covers the dividend bill of about $158 million. The company may not be printing earnings, but the cash to support those quarterly payments is very much there.
That said, if the earnings weakness persists, it’s worth keeping an eye on. But for now, the checks are well-supported by real money—not just accounting theory.
Chart Analysis
General Price Behavior
Looking at the chart for Perrigo Company (PRGO), we’re seeing a stock that’s been grinding through a longer-term downtrend with several failed attempts to push higher. The 200-day moving average has remained firmly overhead since early last year, acting as a consistent ceiling for price rallies. Recently, though, PRGO managed to briefly pierce above that long-term moving average before pulling back sharply—an early sign that buyers are testing the waters again but haven’t fully committed.
The 50-day moving average, which had been trending lower for months, is now starting to curl upward. That’s a small but important shift, suggesting short-term momentum is improving. We also see price now hovering right between the 50- and 200-day moving averages, indicating a potential battleground zone where the next direction may be decided.
Volume Insights
Volume spikes tell us a lot here. Notice the massive surge in volume in early March—by far the highest in nearly a year. That kind of surge typically reflects either strong institutional buying or selling. Given that the price spiked higher before retreating, it’s likely there was a wave of buying followed by some profit-taking or a lack of follow-through. Since then, volume has cooled off, which is pretty normal after a big move. But if you’re watching this closely, you’ll want to see volume start to build again on any new move upward.
Relative Strength Index (RSI)
RSI has been a solid companion indicator here. Back in the middle of the chart, RSI hovered in the oversold zone for a while, reflecting the prolonged selling pressure. As we moved into the end of the year and early 2025, it began to climb steadily, mirroring the price recovery. The recent spike took RSI close to overbought levels, right around that 70 mark, before pulling back along with price. It’s now resetting—currently sitting in more neutral territory, suggesting the recent heat has cooled off a bit.
Latest Five Candles
Zooming in on the last five candles, there’s a lot to unpack. We saw a sharp upward candle about five sessions ago, driven by that surge in volume. That was followed by a large wick on top the next day—classic sign of sellers stepping in as the price reached a resistance level, likely near the 30 dollar mark. Since then, candles have gotten smaller with longer wicks on both ends, reflecting indecision and a bit of tug-of-war between bulls and bears. Today’s close at 27.48 came after a slight dip from the high of 27.99, and volume is thinning out—indicating a pause, not a trend reversal just yet.
The story unfolding here is one of recovery efforts meeting resistance. Buyers are showing up again, but not in overwhelming force—at least not yet.
Analyst Ratings
Perrigo Company plc (PRGO) has been under a steady watch from the analyst community, and recent months have brought a mix of caution and realism to the table. As of late March 2025, the overall consensus rating stands at Hold. Out of four analysts currently covering the stock, three maintain a Hold rating, while one leans a bit more optimistic with a Buy.
🎯 The average 12-month price target sits at $33.00, which implies an upside potential of around 18% from the current trading level near $27.94. That target isn’t uniform across the board—expectations range from a low of $27.00 to a high of $42.00, which shows there’s still some divide on how things might play out.
🔻 One notable shift came from Piper Sandler earlier this year. They downgraded PRGO from Overweight to Neutral and pulled back their target from $34.00 to $27.00. Their view was shaped largely by recent underwhelming earnings and a less-than-clear path for top-line growth. They’re essentially signaling that while the company is solid, it might be dead money in the near term unless it surprises to the upside.
📉 Back in late 2024, Jefferies also walked back its earlier bullish stance. They downgraded the stock from Buy to Hold and cut their price target sharply from $50.00 to $30.00. Their concerns centered on a combination of margin pressure and competitive headwinds in the consumer health space, particularly in the OTC segment.
Right now, PRGO is in that middle lane—not weak enough to be a sell, but not exciting enough to justify aggressive buying either. Analysts seem to be waiting for clearer signals from management or stronger performance metrics before making a more definitive call. Until then, it’s steady as she goes.
Earning Report Summary
Perrigo’s latest earnings report was a bit of a mixed bag—some signs of real progress, but also a few lingering concerns that haven’t quite cleared up yet.
Let’s start with the good stuff. Adjusted earnings per share came in at 93 cents for the fourth quarter, which is a step up from the 86 cents they reported this time last year. That kind of improvement doesn’t happen by accident—it’s a sign they’re managing the business better on the margin side, even if top-line growth isn’t exactly exploding.
Sales, on the other hand, dipped slightly—down about 1.6% year over year. It’s not a disaster by any means, but it does show that the company is still facing some headwinds when it comes to driving consistent growth across its product lines.
Where things really got interesting was on the operating income side. That jumped over 21% compared to last year, which tells you that cost controls and internal efficiency efforts are starting to pay off. That kind of improvement shows management has been serious about getting leaner and more focused.
That said, despite the stronger operating performance, Perrigo still ended the year with a net loss of around $160 million. That stings a bit and puts a spotlight on some of the structural challenges the business is still working through.
Cash flow, though, was solid. They pulled in just under $363 million in operating cash flow for the year, and that’s a good cushion to have, especially when navigating a tough market. They’re also carrying a decent amount of debt—about $3.8 billion—but with a current ratio of 2.38, they’re in a comfortable spot when it comes to near-term obligations.
Gross margin improved too, now sitting at 41%, which is a meaningful bump from where it was before. Part of that is thanks to Project Energize, an internal initiative aimed at tightening up operations. So far, that project has saved them roughly $95 million this year.
Overall, Perrigo is clearly working to turn a corner. While the sales softness and net loss can’t be ignored, the underlying improvements in earnings, margins, and cash flow are all signs that they’re headed in a better direction.
Financial Health and Stability
Perrigo’s financial foundation has a few dents, but it’s not shaky.
On the bright side, the company has more than half a billion dollars in cash and a current ratio of 2.38, meaning it can comfortably meet its short-term obligations. Operating cash flow is solid, and the business continues to throw off meaningful cash.
The concern, if there is one, comes from the debt load. With $3.82 billion in total debt and a debt-to-equity ratio just shy of 90%, leverage is higher than some income investors may like. But as long as cash flow holds up, it’s manageable.
Earnings may be down, but the fundamentals—cash flow and liquidity—still support the company’s ability to operate and return capital to shareholders.
Valuation and Stock Performance
From a valuation standpoint, PRGO looks like a bit of a bargain. Shares are trading at less than 0.9 times both book value and sales, and the forward P/E is under 10. That’s the kind of multiple that suggests the market has low expectations, or simply isn’t paying attention.
The PEG ratio is under 1, which generally signals undervaluation if future growth materializes. Of course, whether that growth shows up is the question.
Looking at the chart, the stock has been hovering near its 200-day moving average and remains much closer to its 52-week low than its high. That may be a sign of investor skepticism, but it also means there could be room for upside if the fundamentals start to improve.
For what it’s worth, PRGO has a very low beta of 0.47, making it much less volatile than the average stock. That makes it potentially useful in portfolios that value stability.
Risks and Considerations
As with any stock, Perrigo comes with its share of risks.
One big one is profitability. The company is still generating cash, but earnings are in the red. If that trend continues, it could eventually start to limit financial flexibility, even if the dividend looks safe today.
Then there’s the debt. With interest rates where they are, rolling over debt or servicing it becomes more expensive. This isn’t a crisis situation by any means, but it’s something to monitor.
Competition is another factor. The consumer health market is crowded, and Perrigo doesn’t have the same brand strength as some of the larger players. If shelf space or pricing pressure heats up, it could impact margins.
And lastly, the dividend—while currently supported—depends on continued cash flow. If cash starts drying up or management decides to prioritize deleveraging, the payout could come under review.
Final Thoughts
Perrigo isn’t the kind of name that will ever make a flashy top-ten list. But it doesn’t have to. For investors looking for a steady, income-generating stock that flies under the radar, PRGO is quietly doing its job.
The yield is attractive, the payout is backed by real cash, and the stock looks cheap relative to its own fundamentals. It’s not perfect—no stock is—but it offers something that’s increasingly rare: consistency.
If you’re building a portfolio with income and value in mind, this is the kind of name that can help anchor it. Not the star quarterback, maybe, but a solid offensive lineman doing the dirty work without much fanfare. And for long-term investors, that might be just what the doctor ordered.