PERRIGO Co plc

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✓ 2✗ 13▾

  No clean pass — all 12 investors flag at least one debt & leverage criterion

  LT Debt vs Net Current AssetsLT Debt $3.3B vs NCA $1.4B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.24, IC: -5.6x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.35

  ✗Lynch< 0.33

  Cash - Long-term Debt$-2.8B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change37.12% -> 42.22%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities2.35

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.35

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.35

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=-5.6x, D/EBITDA=N/A

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.35

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.3498; #3509/4210 (top 83.3%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation models0% pass✗ 4▾

  PRGO overvalued: all 4 models price fair value below $16.24 (median $9.91)

  Munger fair value$9.60

  ✗Munger-69.2% margin vs $16.24

  Pabrai fair value$1.60

  ✗Pabrai-915.0% margin vs $16.24

  Akre fair value$12.97

  ✗Akre-25.2% margin vs $16.24

  Ackman fair value$10.22

  ✗Ackman-58.9% margin vs $16.24
• Profitability6% pass✓ 3✗ 32▾

  15 of 16 flag PRGO's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)7/16 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)7/16 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-11.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-26.4% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-1.2B

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-72.5%

  ✗Lynch> 15%

  EBIT / Enterprise Value-31.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-31.6%, ROC=-90.5%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-16.70%

  ✗PiotroskiROA > 0

  ROA Change YoY-1.78% -> -16.70% (delta: -14.92%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=2.79%, ROA=-16.70%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY35.3% -> 35.1%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-40.4%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-72.5%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.8x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-17.6% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency7/14 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue-39.4%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-72.5%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend3.3% (2023) -> -26.4% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 36.1% -> 35.1%, operating margin 3.3% -> -26.4%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization-78.51%; #5273/6340 (top 83.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+17.67%; #2224/3702 (top 60.1%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-72.52%; #4424/5226 (top 84.7%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0632; #2880/5884 (top 48.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR3.1% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation8% pass✓ 7✗ 21▾

  12 of 13 flag PRGO's valuation — Graham, Lynch, Greenblatt +9 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.8x

  ✓Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value-31.6%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-31.6%, ROC=-90.5%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)9.4x

  ✗Dreman< 8x

  Price / Book Value per Share0.8x

  ✓Dreman< 1.2x✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessOE Yield=-52.8%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldFCF Yield=6.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.8x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share15.4x

  ✓Ackman<= 25

  Price vs. Trailing Low151% of trailing low ($10.74)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization-78.51%; #5273/6340 (top 83.2%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+1.0826; #1342/6449 (top 20.8%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-49.8%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.8145; #1164/5247 (top 22.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+7.46%; #1091/4519 (top 24.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+37.16%; #865/6202 (top 13.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts12% pass✓ 2✗ 15▾

  Split decision: 14 FAIL · 2 PASS

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)✗GreenblattRank #2677✓PiotroskiPASS (F-Score 4)✗DremanFAIL (4/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1736/2370 (Top 73.2%))✗NeffFAIL (3/6)✗SchlossFAIL (3/7)✗OshaughnessyFAIL (Rank #289/963 (Top 30.0%))
• Growth13% pass✓ 2✗ 11▾

  7 of 8 flag PRGO's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -17.4% vs Rev: -4.5%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency7/14 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-2.8%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 36.1% -> 35.1%, operating margin 3.3% -> -26.4%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR0.8%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR3.1% over 5 years

  ✗Neff7%-20% annualized
• Efficiency38% pass✓ 4✗ 7▾

  5 of 8 flag PRGO's efficiency — Buffett, Greenblatt, Munger +2 more

  Current Ratio2.35

  ✓Graham>= 2.0

  ROIC (3-5 yr avg)-1.3%

  ✗Buffett> 10%

  ROIC - WACC-11.3%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-90.5%

  ✗Greenblatt> 25%

  Current Ratio Change YoY2.38 -> 2.76

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.45x -> 0.50x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities2.35

  ✓Dreman> 1.5

  Return on Invested Capital-22.2%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=1.4%; FY2024: ROIC=1.1%; FY2025: ROIC=-13.5%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest -13.5%)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow50% pass✓ 7✗ 5▾

  5 of 10 pass — Buffett, Lynch, Dreman +2 more object

  Free Cash Flow Proxy$-1.2B

  ✗BuffettPositive and growing

  FCF Positive and Growing$168.2M

  ✗LynchPositive and growing

  Operating Cash Flow$238.5M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=2.79%, ROA=-16.70%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)9.4x

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=6.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive14/14 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap7.5%

  ✓Ackman>= 4%

  Price / FCF per Share15.4x

  ✓Ackman<= 25

  Positive Operating Cash Flow frequency14/14 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$168.2M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+7.46%; #1091/4519 (top 24.1%)

  ✗OshaughnessyTop 10% of eligible cross-section