One-glance verdict
Undervalued
$75.62 our estimate vs market $47.73
Wall Street consensus: $67.80 (-10.3% lower than our fair-value estimate)
37% below our estimate, below the bear case
Fundamentals snapshot
Prestige Consumer Healthcare Inc.
PBH · NYQ · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$47.73
52-week range
$42.62 - $71.07
Market cap
$2.26B
Balance sheet
Stretched
7.31x Adequate
Net debt $1.98B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 9.1% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 30.8% to 20.8% over 3 years.
What this company does
Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare sells many well-known health products you can buy without a prescription, like Clear Eyes eye drops, Dramamine for motion sickness, and Compound W for wart removal. The company makes its money selling these trusted brands in big retailers like Walmart and CVS. This can create a stable business because customers often need to repurchase these basic health items, regardless of how the economy is doing.
How the company got here
Founded in 1996, Prestige Consumer Healthcare started by buying up well-known but sometimes overlooked brands from larger companies. A key part of its history has been growth through these acquisitions, purchasing brands like Clear Eyes, Dramamine, and a portfolio from GlaxoSmithKline. Originally known as Prestige Brands, it even had a household cleaning products division, which it sold in 2018 to focus purely on healthcare products. This shift led to its current name, Prestige Consumer Healthcare, cementing its strategy of managing a focused collection of over-the-counter health brands.
What it actually does
Prestige Consumer Healthcare sells a variety of health and personal care products that you can buy without a prescription, often called over-the-counter (OTC) products. You would recognize many of its brands from the aisles of drugstores, supermarkets, and online retailers. The company owns well-known names like Monistat for women's health, Dramamine for motion sickness, Clear Eyes for eye redness relief, and Compound W for wart removal. Essentially, Prestige acquires these established brands and works to grow them through marketing and by introducing new versions of the products.
North American OTC Healthcare
This is the company's largest and most important business segment, making up the vast majority of its sales. It includes all the products sold in the United States and Canada, covering everything from women's health and eye care to stomach remedies and pain relief. When you buy brands like Summer's Eve, Fleet, or BC Powder in a U.S. store or from a U.S. website, you are contributing to this segment. This part of the business is the company's core profit and revenue (the total money a company brings in from sales) generator.
International OTC Healthcare
This segment handles the sale of its healthcare products outside of North America. While smaller than the North American business, it's a growing piece of the company's overall strategy. A key market in this segment is Australia, where brands like Hydralyte, an oral rehydration product, are very popular. The company aims to sell more of its existing brands through its international distribution network (the system of wholesalers and retailers that get products to customers).
What management is betting on now
The company's main strategy is to keep growing its core, established brands through focused marketing and by creating new product versions. Management is also continuing its long-standing practice of acquiring other well-known, niche over-the-counter brands to add to its portfolio. A key goal is to generate strong free cash flow (cash left after paying for operating costs and large purchases like equipment) which can then be used to pay down debt or buy more brands. They are also focused on expanding their international business and growing sales through e-commerce channels.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$67.77M
FY2025 Q3
$63.52M
FY2025 Q4
$58.37M
FY2026 Q1
$78.17M
FY2026 Q2
$55.38M
FY2026 Q3
$75.26M
FY2026 Q4
$37.63M
FY2027 Q1
$67.08M
Revenue
$265.71M
Net income
$29.18M
Diluted EPS
0.61
Operating cash flow
$70.79M
Free cash flow
$67.08M
Fetching…
Sources
Revenue
$281.62M
Net income
$53.93M
Diluted EPS
1.13
Operating cash flow
$42.84M
Free cash flow
$37.63M
Fetching…
Sources
Revenue
$283.44M
Net income
$46.70M
Diluted EPS
0.97
Operating cash flow
$78.29M
Free cash flow
$75.26M
Fetching…
Sources
Revenue
$274.11M
Net income
$42.21M
Diluted EPS
0.86
Operating cash flow
$57.49M
Free cash flow
$55.38M
Fetching…
Sources
Revenue
$249.53M
Net income
$47.47M
Diluted EPS
0.95
Operating cash flow
$79.01M
Free cash flow
$78.17M
Fetching…
Sources
Revenue
$296.52M
Net income
$50.13M
Diluted EPS
1.00
Operating cash flow
$61.85M
Free cash flow
$58.37M
Fetching…
Sources
Revenue
$290.32M
Net income
$61.03M
Diluted EPS
1.22
Operating cash flow
$65.09M
Free cash flow
$63.52M
Fetching…
Sources
Revenue
$283.79M
Net income
$54.38M
Diluted EPS
1.09
Operating cash flow
$69.80M
Free cash flow
$67.77M
Fetching…
Sources
Is it cheap or expensive?
Fair value $75.62 vs current price $47.73
Wall Street consensus is the average analyst price target: $67.80 (-10.3% lower than our fair-value estimate).
Our most-likely fair value is $75.62 a share — about 58.4% above today's price of $47.73, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $2.0B. Interest coverage 7.3x.
Net debt
$1.98B
Interest coverage
7.31x
Prestige Consumer Healthcare Inc.'s profit covers its interest bill about 7.3 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
PBH
BASELINE
Prestige Consumer Healthcare Inc.
Total debt $2.07B Interest coverage 7.31x This is the baseline the peer rows are being compared against.
Total debt $3.48B Interest coverage 1.92x -74% vs PBH Carries about 3.8x less debt cushion than PBH.
Total debt $5.11B Interest coverage 0.45x -94% vs PBH Carries about 16.4x less debt cushion than PBH.
Total debt $11.01B Interest coverage 6.95x -5% vs PBH Has roughly the same debt cushion as PBH.
Total debt $8.61B Interest coverage 6.31x -14% vs PBH Has roughly the same debt cushion as PBH.
Total debt $2.43B Interest coverage 11.32x +55% vs PBH Carries about 1.5x more debt cushion than PBH.
What you should know
The case for and against PBH
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.5% last year.
-
Returns 9.1% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 30.8% to 20.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.37x
Forward P/E
9.39x
P/B
1.18x
P/S
2.05x
EV/EBITDA
12.89x
PEG ratio
1.48x
Profitability
How much profit each dollar creates
Gross margin
54.8%
Operating margin
20.8%
Net margin
15.6%
ROE
9.1%
ROA
4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.08x
Current ratio
3.23x
Quick ratio
1.80x
Total debt
$2.07B
Total cash
$89.13M
Growth
How the business has been compounding
Revenue TTM
$1.10B
Revenue 5Y CAGR
0.0%
EPS TTM
3.57
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$249.40M
Free CF TTM
$246.45M
FCF margin
22.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2013-12-27