Perrigo (NYSE:PRGO) remains unprofitable, with losses increasing at a rate of 15.2% per year over the past five years. Revenue is expected to grow just 2.1% per year, lagging well behind the US market’s average of 10.5%. Although forecasts suggest Perrigo may achieve profitability within three years and deliver 6.54% annual earnings growth, its current Price-to-Sales Ratio of 0.5x stands out as notably lower than both the US Pharmaceuticals industry average and that of its peers. This highlights attractive relative valuation. For investors, compelling value is counterbalanced by the company’s ongoing unprofitability and fresh concerns around dividend sustainability.

See our full analysis for Perrigo.

The next section cuts through the numbers versus the main narratives investors are discussing. It makes clear where expectations and reality meet or miss.

See what the community is saying about Perrigo

• Perrigo expects profit margins to rise from -1.4% to 4.0% over the next three years, a turnaround powered by operational changes and efficiency efforts explicitly mentioned in recent filings.

• Analysts’ consensus view centers on how ongoing initiatives should drive this margin improvement:

  • Project Energize and supply chain reinvention are targeting $150 million to $200 million in cost savings. These savings are designated for both funding innovation and lifting margins in future periods.

  • Strategic moves such as the recent sale of the Dermacosmetics business allow Perrigo to focus investment on core, higher-growth product segments. These segments have historically generated stronger margins.

Consensus narrative calls out margin momentum, but can Perrigo actually deliver on these cost-saving targets?
📊 Read the full Perrigo Consensus Narrative.

• Unit and volume share gains in U.S. store-brand OTC products are noted as a structural shift. New contract wins are forecast to add at least $75 million in second-half sales, partially offsetting sluggish demand in some categories.

• Analysts’ consensus view is that these private label trends provide Perrigo with revenue stability even as market growth lags:

  • A long-term trend toward cost-conscious self-care and wellness products is expanding the addressable market for Perrigo’s core offerings.

  • Recent wins in U.S. store-brand OTC outpaced distribution losses for the first time since the 2024 reset, directly supporting a stronger revenue and operating income outlook compared to earlier periods.

• At a current share price of $15.10, Perrigo trades at a substantial discount to the analyst target price of $27.50. This is despite its low 0.5x price-to-sales multiple relative to industry and peer averages.

• Analysts’ consensus view balances upside and risk:

  • For the target to materialize, Perrigo needs to reach $4.6 billion in revenue and $183.6 million in earnings by 2028. Achieving these results would require the stock to be valued at a 32.9x PE, which is higher than the current U.S. Pharmaceuticals industry average of 19.5x.

  • Margin expansion and market share growth are necessary for this re-rating. However, ongoing losses and dividend sustainability risk mean the gap between price and target depends on successful execution.