Prestige Consumer Healthcare Inc Dossier
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SectorHealth Care IndustryDrug Manufacturers - Specialty & Generic Beta (adjusted)0.55 Intrinsic Value $63.42median of 6 methods · middle span $54-$101based on filings through 30 Jun 2026 Market Price $44.77Price as of 1 Oct 2026 UndervaluedIntrinsic value is 42% above the market price −50% · IV below pricenear fair value ±15%IV above price · +50% Data confidence Sign in to view data confidence Market Cap $2.1B Enterprise Value $4B Shares Outstanding 46.5M diluted Moat Rating None Next Earnings Date5 Nov 2026 Last ex-dividend27 Dec 2013 All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference. ThesisStreet consensus, scenarios, merits, risks, and invalidation triggers Thesis Summary Prestige Consumer Healthcare (PBH) presents a classic value-versus-leverage dilemma. On one hand, the company possesses a highly resilient portfolio of leading over-the-counter (OTC) brands (such as Monistat, Clear Eyes, and Dramamine) that generate strong, consistent free cash flow. Its valuation is historically cheap, trading at a forward P/E of approximately 10.7x. On the other hand, organic growth remains elusive, and the company's balance sheet is set to become significantly more leveraged following the $1.045 billion acquisition of Breathe Right (completed June 12-15, 2026) and the pending $150 million acquisition of LaCorium Health. Operational setbacks, particularly supply chain constraints at its Clear Eyes eye care business, have also weighed on recent performance, leading to a significant earnings miss in Q4 FY26. While the acquisitions add high-margin, category-leading brands, the added debt burden and flat organic growth profile warrant a cautious Hold stance until integration execution and deleveraging are demonstrated. This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today. Street view · analyst 12-month targets Low · most bearish analyst$55.00 Mean target$67.80 High · most bullish analyst$75.00 Our research · scenarios, merits, risks, and invalidation triggersResearch as of 18 Sep 2026 Scenarios · 12-month scenario targets Bear CaseDownside scenario $55.0020% The bear case is triggered by integration bottlenecks with Breathe Right and prolonged supply chain disruptions at the Pillar5 facility, preventing a full recovery of Clear Eyes. High leverage (exceeding 4.5x pro forma EBITDA) combined with rising interest rates or restrictive covenants limits financial flexibility. Organic sales continue to decline, and a highly promotional retail environment pressures gross margins, leading to a failure to meet the FY27 free cash flow target of $250 million and causing further multiple contraction. Base CaseCentral scenario $67.8050% Matches the consensus meanThe base case assumes PBH achieves its guided organic revenue growth of 1% to 3% and adjusted diluted EPS of $4.42 to $4.51 for Fiscal 2027. The Breathe Right brand is integrated smoothly, but the substantial interest burden from the new Term Loan B limits near-term EPS accretion. Clear Eyes supply constraints gradually ease as the Pillar5 facility ramps up production, but consumer spending volatility remains a minor headwind. Free cash flow remains robust at around $250 million, allowing the company to begin deleveraging from its post-acquisition peak. Bull CaseUpside scenario $75.0030% The bull case is built on successful integration of the Breathe Right and LaCorium acquisitions, which immediately expand the top line and add high-margin products. Furthermore, a swift resolution of the Clear Eyes supply chain issues via the newly acquired Pillar5 sterile manufacturing facility allows PBH to fully capture robust consumer demand. Strong free cash flow generation (guided at $250M+ for FY27) is aggressively directed toward rapid debt paydown, bringing leverage back down to historical comfort levels and triggering a valuation re-rating toward its 5-year historical average P/E of 14.4x. Scenarios are anchored to street consensus at the research date, with our probabilities and rationale. Key Investment Merits
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All scenarios are estimates and subject to change. Past performance is not indicative of future results. Quality Pillars MembersThis section is available to registered members. Create a free account or sign in to unlock the full breakdown. Explore this dossierValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework. |