GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Perrigo Co PLC (NYSE:PRGO) » Definitions » Owner Earnings per Share (TTM)

Perrigo Co (Perrigo Co) Owner Earnings per Share (TTM) : 0.53 (As of Dec. 2023)


View and export this data going back to 1991. Start your Free Trial

What is Perrigo Co Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Perrigo Co's Owner Earnings per Share (TTM) ended in Dec. 2023 was $0.53. It's Price-to-Owner-Earnings ratio for today is 60.26.


The historical rank and industry rank for Perrigo Co's Owner Earnings per Share (TTM) or its related term are showing as below:

PRGO' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 13.73   Med: 39.82   Max: 304.47
Current: 59.82


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Perrigo Co was 304.47. The lowest was 13.73. And the median was 39.82.


PRGO's Price-to-Owner-Earnings is ranked worse than
79.1% of 421 companies
in the Drug Manufacturers industry
Industry Median: 27.64 vs PRGO: 59.82

Perrigo Co's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $-0.24. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $-0.10. It's PE Ratio ratio for today is At Loss.

Perrigo Co's EPS without NRI for the three months ended in Dec. 2023 was $0.86. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $2.14. It's PE Ratio without NRI ratio for today is 14.93.


Perrigo Co Owner Earnings per Share (TTM) Historical Data

The historical data trend for Perrigo Co's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Perrigo Co Owner Earnings per Share (TTM) Chart

Perrigo Co Annual Data
Trend Jun14 Jun15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.65 -0.05 -1.15 0.42 0.53

Perrigo Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.42 -0.20 0.66 1.21 0.53

Competitive Comparison of Perrigo Co's Owner Earnings per Share (TTM)

For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Perrigo Co's Price-to-Owner-Earnings Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Perrigo Co's Price-to-Owner-Earnings falls into.



Perrigo Co Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Perrigo Co's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income -13
Depreciation, Depletion and Amortization 360
Change In Deferred Tax -107
5Y Average of Maintenance Capital Expenditure 109
Change In Working Capital -59
Shares Outstanding (Diluted Average) 136

1. Start with "Net Income" from income statement. Perrigo Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-13 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Perrigo Co's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2023 was $360 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Perrigo Co's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2023 was $-107 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $109 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Perrigo Co's 5-Year Average Maintenance Capital Expenditure = $109 Mil

5. "Change In Working Capital" is from cashflow statement. Perrigo Co's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2023 was $-59 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Perrigo Co's Shares Outstanding (Diluted Average) for the months ended in Dec. 2023 was 135.600 Mil.

Perrigo Co's Onwer Earnings Per Share for Dec. 2023 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( -12.7 +359.5+-106.6
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-109.26563301156+-58.5)/135.600
=0.53

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=31.94/0.53
=60.26

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Perrigo Co Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Perrigo Co's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Perrigo Co (Perrigo Co) Business Description

Traded in Other Exchanges
Address
The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74
Perrigo is one of the largest consumer health companies in the world. Since 2018, Perrigo divested its animal health and generic pharmaceuticals businesses to solely focus on consumer self-care. In North America (two thirds of total sales), the firm's product mix is anchored in private-label consumer health goods, which are sold to major retailers like Walmart, Amazon, Costco, and CVS. Perrigo also plays in Europe, Australia, and parts of Asia where it primarily generates revenue through its national brands, including Compeed, Solpadeine, Coldrex, and ellaOne.
Executives
Robert Willis officer: Acting CHRO C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Alison Ives officer: EVP & Chief Scientific Officer C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Eduardo Guarita Bezerra officer: EVP & Chief Financial Officer C/O FRESH DEL MONTE PRODUCE INC., PO BOX 149222, CORAL GABLES FL 33134
Patrick Lockwood-taylor director, officer: CEO C/O PERRIGO COMPANY PLC, 430 MONROE AVE NW, GRAND RAPIDS MI 49503
Julia M Brown director C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001
Triona Schmelter officer: EVP & President CSCA 2021 SPRING ROAD, SUITE 600, OAK BROOK IL 60523
Geoffrey M. Parker director 15 RIORDAN PLACE, MENLO PARK CA 94025
Svend Andersen director C/O PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Murray S Kessler director, officer: CEO 714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Thomas Farrington officer: Senior VP and CIO 4012 W. CANTERBURY CT., NEQUON WI 53092
Dillard James E Iii officer: EVP, Chief Scientific Officer 6601 WEST BROAD STREET, RICHMOND VA 23230
Ronald Craig Janish officer: EVP, Global Op. & Supply Chain PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Grainne Quinn officer: EVP, Chief Medical Officer PERRIGO COMPANY PLC, 515 EASTERN AVENUE, ALLEGAN MI 49010
Albert Manzone director C/O MERISANT, AVENUE JEAN-JACQUES ROUSSEAU 7, NEUCHATEL V8 CH-2000
Kyle Hanson officer: EVP & General Counsel