Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare Inc. Fundamental Analysis
Prestige Consumer Healthcare Inc. (PBH) shows moderate financial fundamentals with a PE ratio of 15.75, profit margin of 16.90%, and ROE of 10.16%. The company generates $1.1B in annual revenue with weak year-over-year growth of 1.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PBH's fundamental strength across five key dimensions:
Efficiency Score
WeakPBH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPBH trades at attractive valuation levels.
Growth Score
WeakPBH faces weak or negative growth trends.
Financial Health Score
ExcellentPBH maintains a strong and stable balance sheet.
Profitability Score
ModeratePBH maintains healthy but balanced margins.
Key Financial Metrics
Is PBH Expensive or Cheap?
P/E Ratio
PBH trades at 15.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PBH's PEG of -2.56 indicates potential undervaluation.
Price to Book
The market values Prestige Consumer Healthcare Inc. at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.71 times EBITDA. This is generally considered low.
How Well Does PBH Make Money?
Net Profit Margin
For every $100 in sales, Prestige Consumer Healthcare Inc. keeps $16.90 as profit after all expenses.
Operating Margin
Core operations generate 29.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.16 in profit for every $100 of shareholder equity.
ROA
Prestige Consumer Healthcare Inc. generates $5.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Prestige Consumer Healthcare Inc. generates strong operating cash flow of $277.81M, reflecting robust business health.
Free Cash Flow
Prestige Consumer Healthcare Inc. generates strong free cash flow of $268.33M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.58 in free cash annually.
FCF Yield
PBH converts 9.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PBH Stacks Against Its Sector Peers
| Metric | PBH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.75 | 28.53 | Better (Cheaper) |
| ROE | 10.16% | 751.00% | Weak |
| Net Margin | 16.90% | -19212.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 0.30 | Weak (High Leverage) |
| Current Ratio | 3.11 | 4.53 | Strong Liquidity |
| ROA | 5.34% | -15881.00% (disorted) | Weak |
PBH outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Prestige Consumer Healthcare Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.59%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
53.95%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
18.23%
Industry Style: Defensive, Growth, Innovation
High Growth