LSE:PETS

Stock Analysis Report

Executive Summary

Pets at Home Group Plc, through its subsidiaries, operates as a specialist retailer of pet food, pet related products, and pet accessories in the United Kingdom.

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.

Share Price & News

How has at Home Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PETS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

PETS

0.5%

GB Specialty Retail

-0.3%

GB Market


1 Year Return

76.9%

PETS

11.0%

GB Specialty Retail

3.9%

GB Market

Return vs Industry: PETS exceeded the UK Specialty Retail industry which returned 11% over the past year.

Return vs Market: PETS exceeded the UK Market which returned 3.9% over the past year.


Shareholder returns

PETSIndustryMarket
7 Day0.9%0.5%-0.3%
30 Day-7.8%1.1%1.8%
90 Day-7.8%12.6%4.9%
1 Year85.5%76.9%15.1%11.0%9.3%3.9%
3 Year6.2%-8.2%1.8%-8.5%23.2%7.6%
5 Year24.4%2.1%11.0%-6.4%34.3%3.8%

Price Volatility Vs. Market

How volatile is at Home Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is at Home Group undervalued compared to its fair value and its price relative to the market?

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PETS (£2.08) is trading below our estimate of fair value (£3.04)

Significantly Below Fair Value: PETS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PETS is poor value based on its PE Ratio (34.1x) compared to the Specialty Retail industry average (14.9x).

PE vs Market: PETS is poor value based on its PE Ratio (34.1x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: PETS is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PETS is overvalued based on its PB Ratio (1.2x) compared to the GB Specialty Retail industry average (1.1x).


Next Steps

Future Growth

How is at Home Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETS's forecast earnings growth (24.7% per year) is above the savings rate (1.2%).

Earnings vs Market: PETS's earnings (24.7% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PETS's revenue (3.8% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: PETS's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PETS's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has at Home Group performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PETS has high quality earnings.

Growing Profit Margin: PETS's current net profit margins (3.2%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: PETS has become profitable over the past 5 years, growing earnings by 13.1% per year.

Accelerating Growth: PETS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PETS had negative earnings growth (-51.5%) over the past year, making it difficult to compare to the Specialty Retail industry average (-1.4%).


Return on Equity

High ROE: PETS's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is at Home Group's financial position?


Financial Position Analysis

Short Term Liabilities: PETS's short term assets (£199.2M) do not cover its short term liabilities (£218.8M)

Long Term Liabilities: PETS's short term assets (199.2M) do not cover its long term liabilities (220.6M)


Debt to Equity History and Analysis

Debt Level: PETS's debt to equity ratio (19.8%) is considered satisfactory

Reducing Debt: PETS's debt to equity ratio has reduced from 43.7% to 19.8% over the past 5 years.

Debt Coverage: PETS's debt is well covered by operating cash flow (60.3%).

Interest Coverage: PETS's interest payments on its debt are well covered by EBIT (14.9x coverage).


Balance Sheet

Inventory Level: PETS has a low level of unsold assets or inventory.

Debt Coverage by Assets: PETS's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is at Home Group's current dividend yield, its reliability and sustainability?

3.61%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.0%markettop25%5.3%industryaverage2.9%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: PETS's dividend (3.61%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: PETS's dividend (3.61%) is low compared to the top 25% of dividend payers in the UK market (5.3%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PETS has been paying a dividend for less than 10 years.

Growing Dividend: PETS's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (123%), PETS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PETS's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

Management

What is the CEO of at Home Group's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Peter Pritchard 0

1.6yrs

Tenure

UK£967,988

Compensation

Mr. Peter Pritchard is Group Chief Executive Officer at Pets at Home Group Plc since April 27, 2018 and its Director since 2018. He has been Chief Executive Officer - Vet Group of Pets at Home Group Plc si ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.24M) is below average for companies of similar size in the UK market ($USD1.81M).

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


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: PETS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: PETS's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£11,94206 Jun 19
Louise Stonier
EntityIndividual
Role
Chief Legal Officer
Chief People & Legal Officer and Company Secretary
Shares6,456.6
Max PriceUK£1.85

Ownership Breakdown

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


Management Team

  • Amie Gramlick

    Director of Investor Relations & Corporate Affairs

    • Tenure: 0yrs
  • Peter Pritchard

    Group CEO

    • Tenure: 1.6yrs
    • Compensation: UK£967.99k
  • Mike Iddon

    Group CFO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£697.68k
  • David Robinson (52yo)

    Retail Chief Operating Officer

    • Tenure: 0.8yrs
  • Louise Stonier

    Chief People & Legal Officer and Company Secretary

    • Tenure: 2.8yrs
  • Robert Kent

    Chief Data Officer

    • Tenure: 1yrs
  • Jane Balmain

    Chief Operating Officer of Vet Group

    • Tenure: 0.5yrs
  • William Hewish

    Chief Information Officer

    • Tenure: 0.7yrs
  • Gillian Hammond

    Head of Media & Corporate Affairs

    • Tenure: 0yrs
  • Nick Rumble

    Group Head of Reward

    • Tenure: 0yrs

Board Members

  • Stan Laurent

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£50.00k
  • Dennis Millard (70yo)

    Deputy Chairman & Senior Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£70.00k
  • Tony DeNunzio (59yo)

    Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: UK£200.00k
  • Paul Moody (62yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: UK£60.00k
  • Sharon Flood (54yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£60.00k
  • Peter Pritchard

    Group CEO

    • Tenure: 1.6yrs
    • Compensation: UK£967.99k
  • Mike Iddon

    Group CFO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£697.68k
  • Susan Dawson

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£46.15k

Company Information

Pets at Home Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pets at Home Group Plc
  • Ticker: PETS
  • Exchange: LSE
  • Founded: 1991
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: UK£1.039b
  • Shares outstanding: 500.00m
  • Website: https://investors.petsathome.com

Number of Employees


Location

  • Pets at Home Group Plc
  • Epsom Avenue
  • Stanley Green Trading Estate
  • Handforth
  • Cheshire
  • SK9 3RN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PETSLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2014
6P8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2014
PETSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2014
PAHG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2014

Biography

Pets at Home Group Plc, through its subsidiaries, operates as a specialist retailer of pet food, pet related products, and pet accessories in the United Kingdom. The company offers a range of diets for dog ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:38
End of Day Share Price2019/11/12 00:00
Earnings2019/03/28
Annual Earnings2019/03/28


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.