Core Thesis - Prestige Consumer Healthcare Inc. (PBH) is viewed as a compelling investment opportunity following its acquisition of Stampede Culinary Partners for $662.5 million, which is expected to enhance its EBITDA significantly [2][3]. Company Overview - PBH develops, manufactures, markets, distributes, and sells over-the-counter health and personal care products in North America, Australia, and internationally [2]. Acquisition Details - The acquisition of Stampede Culinary Partners is structured with $512.5 million in cash, $150 million in stock (approximately 5% dilution), and an additional $100 million earn-out over two fiscal years [2]. - This acquisition is projected to contribute approximately 15% to PBH's EBITDA, with initial mid-single-digit EPS accretion expected to rise to high-single-digit accretion after operational efficiencies are realized, effectively reducing the acquisition multiple to 7.5x [3]. Financial Performance - PBH's earnings run-rate has grown significantly since 2017, although the stock trades near mid-2017 levels. Current-year EPS valuation is around 21x, while next year's estimates reflect a 39% EPS growth, implying a multiple closer to 15x [4]. - The company has a dividend yield above 3% and is positioned for strong growth through strategic acquisitions and organic expansion [5]. Strategic Positioning - PBH's growth strategy has historically combined acquisitions and organic expansion, positioning it as a specialty food producer and distributor in Canada and the U.S. [3]. - Successful integration of Stampede and leveraging operational efficiencies could unlock significant shareholder value while expanding PBH's presence in North America's specialty food sector [5].

Core Viewpoint - Prestige Consumer Healthcare (PBH) is currently viewed as a more attractive investment option compared to Agilent Technologies (A) for value investors, based on various financial metrics and analyst outlooks [3][6]. Valuation Metrics - PBH has a forward P/E ratio of 14.89, significantly lower than A's forward P/E of 23.38, indicating that PBH may be undervalued relative to A [5]. - The PEG ratio for PBH is 2.13, while A's PEG ratio is 4.02, suggesting that PBH offers better value when considering expected earnings growth [5]. - PBH's P/B ratio stands at 1.83, compared to A's P/B of 5.83, further supporting the notion that PBH is undervalued [6]. Analyst Ratings - PBH holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while A has a Zacks Rank of 3 (Hold), reflecting a less favorable outlook [3][6]. - Based on the combination of valuation metrics and analyst ratings, PBH is considered the superior value option at this time [6].

Prestige Consumer Healthcare (NYSE:PBH) FY Conference Summary Company Overview - **Company**: Prestige Consumer Healthcare - **Date**: January 13, 2026 - **Key Speakers**: CEO Ron Lombardi, CFO Chris Sacco, VP of IR and Treasury Phil Terpolilli Industry Context - The year 2025 was marked by significant external events including a new administration, tariffs, and government shutdowns, impacting consumer behavior and purchasing decisions [2][2] - The healthcare products industry remains resilient as consumers prioritize health-related purchases regardless of economic conditions [2][2] Core Business Insights - **Product Portfolio**: Prestige Consumer Healthcare offers a diverse range of health products, which are essential for treating illnesses, positioning the company well during economic fluctuations [2][2] - **Brand Strategy**: The company focuses on building and growing product categories through innovation rather than merely competing for market share [4][4] - **Innovation Examples**: The introduction of non-drowsy Dramamine and ginger chews for nausea exemplifies the company's strategy to expand product offerings and cater to consumer needs [6][7] Financial Performance - **Gross Margin Impact**: The company faced challenges with gross margins due to tariffs and disruptions in the eye care business, with tariffs costing approximately $5 million in fiscal 2026 [19][19] - **EBITDA Margin**: The company maintains a strong EBITDA margin of 33%-34%, indicating robust profitability despite margin pressures [21][21] Distribution Channels - The company has a broad distribution strategy, successfully adapting to consumer shopping preferences, particularly with growth in mass retail and e-commerce channels [13][14] - The Amazon business continues to grow at double-digit rates, while traditional drug and regional grocery channels are experiencing declines [14][14] M&A and Capital Allocation Strategy - **M&A Focus**: The company is actively seeking acquisition opportunities in the fragmented consumer healthcare market, with a disciplined approach to evaluating potential brands [25][29] - **Capital Allocation**: The company plans to balance M&A, share repurchases, and cash build, expecting to generate $1 billion in free cash flow over the next four years [26][26] International Business - The international segment has been performing well, contributing over 10% of total revenue, with brands like Hydralite and FESS showing strong growth [32][32] Private Label Competition - The company acknowledges the presence of private label products but emphasizes its focus on niche brands with strong consumer trust, which helps mitigate the impact of private label competition [37][38] Women's Health Segment - Brands like Monistat and Summer's Eve are positioned for growth, with Monistat achieving a market share of approximately 55% [41][41][42] Conclusion - Prestige Consumer Healthcare is well-positioned for future growth through a diversified product portfolio, strong brand strategies, and a proactive approach to market changes and consumer needs. The company remains focused on innovation and strategic acquisitions to enhance its market presence and profitability.

Core Viewpoint - Prestige Consumer Healthcare Inc. is set to release its fiscal 2026 third quarter earnings on February 5, 2026, before market opening, followed by a conference call at 8:30 a.m. ET to discuss the results [1]. Group 1: Earnings Release and Conference Call - The earnings release for fiscal 2026 third quarter will be issued on February 5, 2026, before the market opens [1]. - A conference call to discuss the earnings results will take place on the same day at 8:30 a.m. ET [1]. - Participants can access the live Internet webcast from the Investor Relations page of the company's website [2]. Group 2: Conference Call Participation - Participants can register for the conference call to receive dial-in details and a unique pin, with a recommendation to join 10 minutes early [2]. - A replay of the conference call will be available for approximately one week following the live event [3]. Group 3: ICR Conference Participation - The company will participate in a fireside chat at the 28th Annual ICR Conference on January 13, 2026, at 9:30 a.m. ET [4]. - A live audio webcast of the ICR Conference event can be accessed from the Investor Relations page of the company's website [4]. - A replay of the webcast will be available later the same day [4]. Group 4: Company Overview - Prestige Consumer Healthcare is a leading consumer healthcare products company with sales in the U.S., Canada, Australia, and other international markets [5]. - The company's diverse portfolio includes brands such as Monistat®, Summer's Eve®, BC®, Goody's®, Clear Eyes®, TheraTears®, and many others [5].

Core Insights - Prestige Consumer Healthcare (PBH) is experiencing strong momentum in the e-commerce channel due to long-term investments and brand-specific digital strategies [1][10] - The company has expanded its brand portfolio through both organic growth and acquisitions, including a recent agreement to acquire Pillar5 Pharma Inc. to enhance its eye care product offerings [4][10] - Despite a stable solvency position, the company faces challenges from a dull macroeconomic environment, including inflationary pressures and supply chain disruptions [11] Financial Performance - Over the past year, PBH's stock has declined by 9.1%, contrasting with the industry's growth of 1.4% and the S&P 500's increase of 18.7% [2] - The company has a market capitalization of $2.97 billion and an earnings yield of 7.3%, significantly higher than the industry's 0.2% yield [2] - PBH has surpassed earnings estimates in three of the last four quarters, with an average surprise of 2.8% [2] Growth Drivers - The acquisition of Pillar5 Pharma is expected to close in the third quarter of fiscal 2026, with minimal ongoing capital expenditure requirements [5][10] - E-commerce sales have shown double-digit growth year-over-year, representing a high-teens percentage of total sales in fiscal 2025, up from approximately 15% the previous year [6][10] - Brand-specific digital strategies have enhanced consumer engagement and retention, with ongoing investments in digital marketing positioning the company for sustained success [7] Solvency and Cost Challenges - As of the end of the second quarter of fiscal 2026, PBH reported no short-term debt and had $119 million in cash and cash equivalents, indicating stable solvency [8][10] - The company anticipates approximately $5 million in tariff costs for fiscal 2026 due to ongoing economic volatility and is implementing cost-saving initiatives to mitigate these impacts [11] Earnings Estimates - The Zacks Consensus Estimate for PBH's fiscal 2026 earnings per share remains unchanged at $4.755, while revenues are projected at $1.11 billion, reflecting a decrease of 2.8% from the previous year [12]

Core Viewpoint - Prestige Consumer Healthcare (PBH) has been upgraded to a Zacks Rank 2 (Buy), indicating an upward trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Prestige Consumer Healthcare suggest an improvement in the company's underlying business, likely leading to higher stock prices [5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Prestige Consumer Healthcare to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns [10]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Prestige Consumer Healthcare, with the Zacks Consensus Estimate for the fiscal year ending March 2026 projected at $4.55 per share, showing a 0.7% increase over the past three months [8].

Core Viewpoint - Prestige Consumer Healthcare (PBH) is currently viewed as a more attractive investment option compared to Abbott (ABT) for those seeking undervalued stocks in the Medical - Products sector [1]. Group 1: Company Rankings and Outlook - PBH has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ABT has a Zacks Rank of 4 (Sell) [3]. - The earnings outlook for PBH has likely improved more significantly than that of ABT recently [3]. Group 2: Valuation Metrics - PBH has a forward P/E ratio of 13.54, significantly lower than ABT's forward P/E of 24.64 [5]. - The PEG ratio for PBH is 1.93, while ABT's PEG ratio stands at 2.31, suggesting PBH may offer better value considering expected earnings growth [5]. - PBH's P/B ratio is 1.66, compared to ABT's P/B of 4.3, further indicating PBH's relative undervaluation [6]. Group 3: Value Grades - Based on various valuation metrics, PBH holds a Value grade of A, while ABT has a Value grade of C, reinforcing PBH's position as the superior value option [6].

Core Viewpoint - Premium Brands Holdings Corporation has announced a definitive agreement to acquire Stampede Culinary Partners, Inc. for approximately US$662.5 million, which includes cash and common shares, along with potential earn-out payments based on profitability targets [1][2]. Acquisition Details - The total purchase price for the acquisition is approximately US$662.5 million, consisting of US$512.5 million in cash and US$150 million in common shares, with a potential earn-out of up to US$100 million based on Stampede's profitability over the next two fiscal years [2]. - The acquisition is expected to be immediately accretive to adjusted earnings per share, with mid-single digit percentage accretion in the first year and high-single digit percentage accretion after realizing synergies [7]. Strategic Rationale - The acquisition aims to strengthen Premium Brands' presence in the U.S. foodservice channel and enhance production capabilities through the addition of sous vide cooking capacity [6]. - The company anticipates that Stampede will benefit from trends driving growth in the protein market, which have seen sales increase from US$337 million in 2019 to a current run rate of over US$1.37 billion [4]. Financial Implications - The acquisition price represents a multiple of approximately 9.7x Stampede's estimated fiscal 2025 Adjusted EBITDA, or 7.5x after accounting for anticipated synergies [7]. - Premium Brands expects to achieve a pro forma senior funded debt to adjusted EBITDA ratio of approximately 3.0:1 and a total funded debt to adjusted EBITDA ratio of 3.9:1 following the acquisition [7]. Financing Structure - The company has entered into an agreement with underwriters for a public offering, which includes the sale of subscription receipts and convertible debentures, to raise approximately $280 million and $430 million, respectively, to partially fund the acquisition [11][12]. - The net proceeds from the offering will be used to finance the cash purchase price of the acquisition and reduce existing indebtedness under the company's revolving credit facility [13][18]. Closing Conditions - The closing of the acquisition is subject to customary conditions, including regulatory approvals, and is expected to be completed by the end of January 2026 [10].

Company Overview - Prestige Consumer Healthcare Inc. (NYSE:PBH) is a New York-based provider of over-the-counter (OTC) health and personal care products, incorporated in 1996, operating through two segments: North American OTC Healthcare and International OTC Healthcare [4] Investment Potential - Prestige Consumer Healthcare Inc. is considered one of the cheap healthcare stocks to buy heading into 2026, with a consensus 1-year median price target of $80, indicating an upside of nearly 32% [1] - Analysts remain bullish on the stock, maintaining a 'Buy' rating despite a recent price target adjustment from $100 to $88 by Canaccord [2] Financial Performance - In the second-quarter results announced on November 6, the company experienced a 6.1% decline in North American segment revenues, which was offset by a 2.5% rise in international segment revenues [3] - Management indicated that sales and earnings outperformed expectations due to specific factors, including Clear Eyes supply timing and retailer order timing, which may impact third-quarter results [2][3] Strategic Focus - The company remains focused on product innovation and e-commerce strategies as part of its growth initiatives [3]

Core Insights - Brandes Small Cap Value Fund reported a return of 11.16% for Q3 2025, underperforming its benchmark, the Russell 2000 Index, which gained 12.39%, and the Russell 2000 Value Index, which returned 12.60% [1] Company Highlights - Prestige Consumer Healthcare Inc. (NYSE:PBH) is a key holding in the Brandes Small Cap Value Fund, focusing on over-the-counter health and personal care products [2] - The stock of Prestige Consumer Healthcare Inc. experienced a one-month return of -0.94% and a significant decline of 28.26% over the past 52 weeks, closing at $59.94 per share with a market capitalization of $2.95 billion on December 09, 2025 [2] - The small-cap investment committee of Brandes Small Cap Value Fund purchased shares of Prestige Consumer Healthcare Inc., along with Globant and Sonoco Products Company during the third quarter [3]