Prestige Consumer Healthcare Inc. Common Stock (PBH)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $207 million in annual free cash flow (7.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 10.3% above cost of capital

Concerns

• Revenue declining at 2.4% year-over-year signals potential demand weakness or market share loss

AI Analysis

Prestige Consumer Healthcare Inc. Common Stock is a small-cap healthcare company valued at $2.7 billion. The business generates $1.1 billion in annual revenue with a 4.2% net margin and $207 million in free cash flow. From a quality standpoint, Prestige shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is reasonably priced at 15.2x earnings, with a modest 2% margin of safety vs Graham Number. Growth dynamics show revenue growing at -2.4% and profit growth of -23.5%. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $207 million in annual free cash flow (7.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer