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Perrigo Co. logo

Perrigo Co.

0Y5E.L
18
Medical - Pharmaceuticals · Healthcare
Price
10.92 GBp
-0.14 (-1.27%)
Market Cap
£1.52B
Exchange
London Stock Exchange
Winston Score
18
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+3.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 133.6M (2021) → 138.5M (2025)

Perrigo is a company that makes store-brand, over-the-counter medicines and health products. Think of the generic pain relievers, allergy pills, cough syrups, and baby formula you see under a grocery store or pharmacy's own label — Perrigo likely made them. Its main customers are large retailers like Walmart, CVS, and Walgreens, who sell these products under their own brand names instead of big-name brands like Tylenol or Advil.

Perrigo earns money by manufacturing and selling these generic consumer health products, primarily across North America and Europe. It is one of the largest store-brand OTC healthcare suppliers in the world, which gives it scale advantages, though it faces constant pressure from both branded competitors and other generic makers. The company has been working to simplify its business after years of acquisitions left it with heavy debt, and reducing that debt load while defending its retail partnerships remains the central challenge going forward.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-7.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$95M/ year

Declining (-15% vs prior year)

2.2% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.8%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~8 months

$357M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Perrigo Co. has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
33.6%
Modest — 33.6% gross margin
Operating Margin
3.5%
Thin — 3.5% operating margin
ROCE
0.5%
Weak — 0.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-3.6%
Shrinking sales (-3.6% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
2.6%
Thin free cash flow (2.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
1.46
Elevated debt (1.46)
Interest Cover
1.16x
Dangerous — barely covers interest (1.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
10.53%
Healthy income — 10.53% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth
+2.5%
Dividend flat

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