One-glance verdict
Undervalued
$106.88 our estimate vs market $44.32
Wall Street consensus: $67.80 (-36.6% lower than our fair-value estimate)
59% below our estimate, below the bear case
Fundamentals snapshot
Prestige Consumer Healthcare Inc.
PBH · NYQ · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$44.32
52-week range
$42.62 - $71.07
Market cap
$2.10B
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 7.2% 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 everyday health and personal care items like pain relievers and baby rash cream across North America and other regions. The money primarily comes from selling these well-known brands in big stores and pharmacies, which matters because it shows a consistent demand for their products.
How the company got here
Prestige Consumer Healthcare Inc. wasn't always known by its current name; it was formerly Prestige Brands Holdings, Inc. before rebranding in August 2018. Founded in 1996 and headquartered in Tarrytown, New York, the company has grown by developing, making, and selling a wide array of everyday health and personal care items. Its journey has involved strategically acquiring and nurturing well-known brands that consumers trust for common ailments and personal hygiene needs.
What it actually does
Prestige Consumer Healthcare Inc. is essentially a collection of familiar brands found in most pharmacies and supermarkets. They focus on over-the-counter (OTC) products, meaning you don't need a prescription to buy them. Think of items that help with everyday discomforts or personal care routines, like pain relief, allergy treatments, or feminine hygiene products. The company makes these products available across North America, Australia, and other international markets through various retail channels.
North American OTC Healthcare
This is the largest part of Prestige Consumer Healthcare's business, focusing on selling over-the-counter health and personal care products within North America. It includes a wide range of well-known brands that address common needs. For example, Boudreaux's Butt Paste helps with diaper rash, Chloraseptic offers relief for sore throats, and Clear Eyes provides solutions for eye irritation. This segment is the primary engine of the company's revenue, serving a vast consumer base with everyday health solutions.
International OTC Healthcare
This segment represents Prestige Consumer Healthcare's efforts to bring its over-the-counter health and personal care products to consumers outside of North America, including in Australia. While smaller than its North American counterpart, it allows the company to expand its reach and brand recognition globally. This division focuses on adapting and distributing familiar brands to new markets, aiming to capture a share of international consumer healthcare spending.
What management is betting on now
Prestige Consumer Healthcare's management is focused on growing its portfolio of trusted over-the-counter brands. A key strategy involves expanding the reach of these brands both within North America and internationally. They also aim to innovate within their existing product lines, potentially introducing new formulations or variations of popular items. The company's success hinges on effectively marketing these accessible health solutions to a broad consumer base and ensuring their products remain readily available where people shop.
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 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
FY2027 Q2
$34.24M
Revenue
$336.31M
Net income
$25.30M
Diluted EPS
0.53
Operating cash flow
$37.87M
Free cash flow
$34.24M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $106.88 vs current price $44.32
Wall Street consensus is the average analyst price target: $67.80 (-36.6% lower than our fair-value estimate).
Our most-likely fair value is $106.88 a share — about 141.2% above today's price of $44.32, 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 $3.46B Interest coverage 1.92x -74% vs PBH Carries about 3.8x less debt cushion than PBH.
Total debt $5.10B Interest coverage 0.45x -94% vs PBH Carries about 16.4x less debt cushion than PBH.
Total debt $11.05B Interest coverage 6.95x -5% vs PBH Has roughly the same debt cushion as PBH.
Total debt $8.34B Interest coverage 6.31x -14% vs PBH Has roughly the same debt cushion as PBH.
Total debt $2.37B 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 7.2% 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)
13.68x
Forward P/E
8.68x
P/B
1.11x
P/S
1.90x
EV/EBITDA
13.84x
PEG ratio
1.44x
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
$1.17B
Revenue 5Y CAGR
0.0%
EPS TTM
3.24
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$229.78M
Free CF TTM
$246.45M
FCF margin
21.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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