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PET

Pet Valu Holdings TSX:PET Stock Report

Last Price

CA$33.72

Market Cap

CA$2.4b

7D

0%

1Y

7.6%

Updated

25 Sep, 2022

Data

Company Financials +
PET fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
Financial Health2/6
Dividends0/6

PET Stock Overview

Pet Valu Holdings Ltd. engages in the retail and wholesale of pet foods, treats, toys, and accessories in Canada.

Pet Valu Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pet Valu Holdings
Historical stock prices
Current Share PriceCA$33.72
52 Week HighCA$36.94
52 Week LowCA$27.27
Beta0
1 Month Change1.05%
3 Month Change6.95%
1 Year Change7.63%
3 Year Changen/a
5 Year Changen/a
Change since IPO27.25%

Recent News & Updates

Aug 17
Valu Holdings' (TSE:PET) Strong Earnings Are Of Good Quality

Valu Holdings' (TSE:PET) Strong Earnings Are Of Good Quality

When companies post strong earnings, the stock generally performs well, just like Pet Valu Holdings Ltd.'s ( TSE:PET...

Shareholder Returns

PETCA Specialty RetailCA Market
7D0%-6.5%-4.8%
1Y7.6%-19.0%-7.3%

Return vs Industry: PET exceeded the Canadian Specialty Retail industry which returned -19% over the past year.

Return vs Market: PET exceeded the Canadian Market which returned -7.2% over the past year.

Price Volatility

Is PET's price volatile compared to industry and market?
PET volatility
PET Average Weekly Movement4.2%
Specialty Retail Industry Average Movement6.7%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.3%
10% least volatile stocks in CA Market3.8%

Stable Share Price: PET is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PET's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19761,815Richard Maltsbargerhttps://www.petvalu.ca

Pet Valu Holdings Ltd. engages in the retail and wholesale of pet foods, treats, toys, and accessories in Canada. The company offers its products for dogs, cats, fish, birds, reptiles, and small pets. It also provides bones and chews, collars and leashes, fleas and ticks, health and wellness, pet cages and carriers, dog and cat toys, litters and accessories, dental care, crates, pens and gates, wild bird products, and other pet-related accessories; and grooming and adoption services for pets, as well as operates dog-wash stations.

Pet Valu Holdings Fundamentals Summary

How do Pet Valu Holdings's earnings and revenue compare to its market cap?
PET fundamental statistics
Market CapCA$2.38b
Earnings (TTM)CA$98.99m
Revenue (TTM)CA$864.69m

24.0x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PET income statement (TTM)
RevenueCA$864.69m
Cost of RevenueCA$498.24m
Gross ProfitCA$366.45m
Other ExpensesCA$267.46m
EarningsCA$98.99m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.40
Gross Margin42.38%
Net Profit Margin11.45%
Debt/Equity Ratio-691.1%

How did PET perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is PET undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PET?

Other financial metrics that can be useful for relative valuation.

PET key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.4x
Enterprise Value/EBITDA17.2x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does PET's PE Ratio compare to its peers?

PET PE Ratio vs Peers
The above table shows the PE ratio for PET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.9x
ATZ Aritzia
27.9x19.0%CA$4.8b
LNF Leon's Furniture
5.5xn/aCA$1.1b
ZZZ Sleep Country Canada Holdings
8.5x8.6%CA$890.0m
UNS Uni-Select
21.5x39.1%CA$1.5b
PET Pet Valu Holdings
24x17.6%CA$2.4b

Price-To-Earnings vs Peers: PET is expensive based on its Price-To-Earnings Ratio (24x) compared to the peer average (15.9x).


Price to Earnings Ratio vs Industry

How does PET's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

Price-To-Earnings vs Industry: PET is expensive based on its Price-To-Earnings Ratio (24x) compared to the North American Specialty Retail industry average (6.2x)


Price to Earnings Ratio vs Fair Ratio

What is PET's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PET PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: PET is expensive based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).


Share Price vs Fair Value

What is the Fair Price of PET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PET (CA$33.72) is trading below our estimate of fair value (CA$53.57)

Significantly Below Fair Value: PET is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Pet Valu Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PET's forecast earnings growth (17.6% per year) is above the savings rate (1.6%).

Earnings vs Market: PET's earnings (17.6% per year) are forecast to grow faster than the Canadian market (7.6% per year).

High Growth Earnings: PET's earnings are forecast to grow, but not significantly.

Revenue vs Market: PET's revenue (8.6% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: PET's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PET's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Pet Valu Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


55.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PET has high quality earnings.

Growing Profit Margin: PET's current net profit margins (11.4%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: PET's earnings have grown significantly by 55.8% per year over the past 5 years.

Accelerating Growth: PET's earnings growth over the past year (57.7%) exceeds its 5-year average (55.8% per year).

Earnings vs Industry: PET earnings growth over the past year (57.7%) exceeded the Specialty Retail industry 23.5%.


Return on Equity

High ROE: PET's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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Financial Health

How is Pet Valu Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PET has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PET has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PET has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PET's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: PET's debt is well covered by operating cash flow (44.6%).

Interest Coverage: PET's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


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Dividend

What is Pet Valu Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PET's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.05%).

High Dividend: PET's dividend (0.71%) is low compared to the top 25% of dividend payers in the Canadian market (5.95%).


Stability and Growth of Payments

Stable Dividend: PET is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: PET is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: PET is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: PET is not paying a notable dividend for the Canadian market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average board tenure


CEO

Richard Maltsbarger (46 yo)

no data

Tenure

CA$2,596,316

Compensation

Mr. Richard D. Maltsbarger serves as President, Chief Executive Officer and Secretary at Pet Valu Holdings Ltd. He also serves as a Director at Pet Valu Holdings Ltd. since November 15, 2018.served as the...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.91M) is about average for companies of similar size in the Canadian market ($USD2.37M).

Compensation vs Earnings: Insufficient data to compare Richard's compensation with company performance.


Board Members

Experienced Board: PET's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PET insiders have only sold shares in the past 3 months.


Recent Insider Transactions

TSX:PET Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
12 Aug 22SellCA$1,756,364Christine Martin-BevilacquaIndividual50,000CA$35.71
11 Mar 22SellCA$1,846,287Christine Martin-BevilacquaIndividual60,300CA$30.89
28 Sep 21SellCA$195,489,828Roark Capital GroupCompany6,061,700CA$32.25

Ownership Breakdown

What is the ownership structure of PET?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders331,4680.5%
Institutions10,519,03614.9%
General Public21,766,98930.9%
VC/PE Firms37,925,85453.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 68.2% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
53.76%
Roark Capital Group
37,925,854CA$1.3b0%23.58%
5.57%
Manulife Asset Management
3,928,131CA$132.5m1.47%0.09%
1.03%
FMR LLC
728,221CA$24.6m0%no data
0.98%
RBC Global Asset Management Inc.
689,069CA$23.2m-8.54%0.01%
0.92%
Fiera Capital Corporation
652,480CA$22.0m0%0.02%
0.87%
BMO Asset Management Corp.
610,500CA$20.6m-4.53%0.01%
0.84%
Industrial Alliance Investment Management Inc.
593,924CA$20.0m0%0.2%
0.74%
1832 Asset Management L.P.
518,584CA$17.5m-0.8%0.02%
0.67%
Forge First Asset Management Inc.
470,600CA$15.9m49.16%3.31%
0.31%
QV Investors Inc.
221,490CA$7.5m0%0.23%
0.3%
Connor, Clark & Lunn Investment Management Ltd.
209,200CA$7.1m0%0.03%
0.28%
Pembroke Management Ltd.
200,552CA$6.8m578.69%0.45%
0.24%
Montrusco Bolton Investments Inc.
169,159CA$5.7m0%0.09%
0.23%
CIBC Asset Management Inc.
164,648CA$5.6m0.15%0.01%
0.21%
Mackenzie Financial Corporation
149,637CA$5.0m0.79%no data
0.17%
AGF Management Limited
118,600CA$4.0m566.29%0.02%
0.16%
Picton Mahoney Asset Management
115,300CA$3.9m0%0.09%
0.14%
Industrial Alliance Mutual Funds Inc.
98,830CA$3.3m0%0.33%
0.13%
Anthony Truesdale
91,472CA$3.1m0%no data
0.13%
Massachusetts Financial Services Company
90,655CA$3.1m0%no data
0.12%
Van Berkom and Associates Inc.
86,956CA$2.9m0%0.09%
0.1%
Waratah Capital Advisors Ltd.
72,298CA$2.4m-35.86%0.09%
0.1%
Christine Martin-Bevilacqua
70,772CA$2.4m-41.4%no data
0.094%
GWL Investment Management Ltd.
66,431CA$2.2m0%0.01%
0.091%
ProShare Advisors LLC
64,159CA$2.2m-5.97%0.01%

Company Information

Pet Valu Holdings Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Pet Valu Holdings Ltd.
  • Ticker: PET
  • Exchange: TSX
  • Founded: 1976
  • Industry: Specialty Stores
  • Sector: Retail
  • Implied Market Cap: CA$2.379b
  • Shares outstanding: 70.54m
  • Website: https://www.petvalu.ca

Number of Employees


Location

  • Pet Valu Holdings Ltd.
  • 130 Royal Crest Court
  • Markham
  • Ontario
  • L3R 0A1
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PETTSX (The Toronto Stock Exchange)YesCommon StockCACADJun 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/07/02
Annual Earnings2022/01/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.