In a recently shared presentation on Perrigo Company plc (PRGO), ValuExVail delved into the investment prospects of this global healthcare company. The presentation highlighted Perrigo’s strong franchises in store branded consumer over the counter (OTC), branded OTC, and topical prescription pharmaceutical products, pointing to excellent prospects for future growth. The stability and recession resistance of the markets Perrigo competes in were also emphasized, providing a solid foundation for investment consideration.
While the failed merger attempt with Mylan and other events have led to a decline in Perrigo’s stock price below 100 per share, ValuExVail sees this as an opportunity. The presentation outlines a GARP (Growth at a Reasonable Price) idea, evidenced by Perrigo’s market capitalization of 14.5 billion, net debt of $5.5 billion, and a free cash flow yield of 8-10%. Historically, the market has regarded Perrigo highly, with a peak price-earnings (P/E) multiple of 34 in 2013 and usually trading at or above a P/E of 20 in the past decade.
Presentation summary generated by ChatGPT