LSE:PETS

Stock Analysis Report

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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 Analysis

Proven track record with adequate balance sheet.

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

1.3%

PETS

4.2%

GB Specialty Retail

1.0%

GB Market


1 Year Return

26.8%

PETS

-5.9%

GB Specialty Retail

-13.7%

GB Market

Return vs Industry: PETS exceeded the UK Specialty Retail industry which returned -8.7% over the past year.

Return vs Market: PETS exceeded the UK Market which returned -15.3% over the past year.


Shareholder returns

PETSIndustryMarket
7 Day1.3%4.2%1.0%
30 Day-3.6%-2.0%-3.0%
90 Day3.9%33.6%12.3%
1 Year30.8%26.8%-4.0%-5.9%-9.7%-13.7%
3 Year72.5%50.8%-4.4%-13.1%-1.8%-13.8%
5 Year1.4%-18.6%-17.0%-29.1%16.2%-9.7%

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?

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PETS (£2.44) is trading below our estimate of fair value (£2.98)

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 (18.1x) compared to the Specialty Retail industry average (13x).

PE vs Market: PETS is poor value based on its PE Ratio (18.1x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: PETS is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: PETS is overvalued based on its PB Ratio (1.3x) compared to the GB Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is at Home Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETS's forecast earnings growth (8.7% per year) is above the savings rate (1.2%).

Earnings vs Market: PETS's earnings (8.7% per year) are forecast to grow slower than the UK market (21.4% per year).

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

Revenue vs Market: PETS's revenue (3.2% per year) is forecast to grow slower than the UK market (3.4% per year).

High Growth Revenue: PETS's revenue (3.2% 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 (7.9%).


Next Steps

Past Performance

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

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PETS has high quality earnings.

Growing Profit Margin: PETS's current net profit margins (6.4%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: PETS's earnings have declined by -10.5% per year over the past 5 years.

Accelerating Growth: PETS's earnings growth over the past year (120.7%) exceeds its 5-year average (-10.5% per year).

Earnings vs Industry: PETS earnings growth over the past year (120.7%) exceeded the Specialty Retail industry 0.4%.


Return on Equity

High ROE: PETS's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is at Home Group's financial position?


Financial Position Analysis

Short Term Liabilities: PETS's short term assets (£199.3M) do not cover its short term liabilities (£286.9M).

Long Term Liabilities: PETS's short term assets (£199.3M) do not cover its long term liabilities (£551.0M).


Debt to Equity History and Analysis

Debt Level: PETS's debt to equity ratio (17.8%) is considered satisfactory.

Reducing Debt: PETS's debt to equity ratio has reduced from 40% to 17.8% over the past 5 years.

Debt Coverage: PETS's debt is well covered by operating cash flow (130%).

Interest Coverage: PETS's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PETS's dividend (3.07%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: PETS's dividend (3.07%) is low compared to the top 25% of dividend payers in the UK market (5.55%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.6%), PETS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PETS's dividends in 3 years are forecast to be covered by earnings (52.3% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Peter Pritchard

2.25yrs

Tenure

UK£1,629,409

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 ($USD2.04M) is about average for companies of similar size in the UK market ($USD1.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Pritchard
Group CEO2.25yrsUK£1.63m0.56% £6.8m
Michael Iddon
Group CFO & Executive Director3.75yrsUK£1.17m0.026% £314.8k
William Hewish
Chief Information Officer1.33yrsno datano data
Jonny Armstrong
Head of Investor Relationsno datano datano data
Lucy Williams
Group Legal Director & Company Secretary0.50yrno datano data
Gillian Hammond
Head of Media & Public Affairsno datano datano data
Louise Stonier
Chief People & Culture Officer3.5yrsno data0.038% £462.7k
Robert Kent
Chief Data Officer1.67yrsno datano data
David Robinson
Retail Chief Operating Officer1.5yrsno datano data
Jane Balmain
Chief Operating Officer of Vet Group1.17yrsno datano data

1.6yrs

Average Tenure

Experienced Management: PETS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Pritchard
Group CEO2.25yrsUK£1.63m0.56% £6.8m
Michael Iddon
Group CFO & Executive Director3.75yrsUK£1.17m0.026% £314.8k
Stansilas Laurent
Independent Non-Executive Director3yrsUK£50.00k0.0060% £72.7k
Dennis Millard
Deputy Chairman & Senior Independent Non-Executive Director6.42yrsUK£70.00k0.0060% £72.7k
M. Burke
Independent Chairman0.17yrno datano data
Paul Moody
Independent Non-Executive Director6.33yrsUK£60.00k0.0055% £66.5k
Sharon Flood
Independent Non-Executive Director3yrsUK£60.00k0.012% £145.7k
Susan Dawson
Independent Non-Executive Director2yrsUK£60.00kno data

3.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PETS's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PETS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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£1.212b
  • 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 dogs, cats, small mammals, fish, reptiles, and birds. It also provides pet accessories, including collars, leads and harnesses, bedding, housing, feeding, health and hygiene, travel, training, and enrichment products for dogs, cats, small mammals, fish, birds, and reptiles. In addition, the company offers pet insurance; and grooming services, such as grooming, baths, microchipping, and nail clipping services. Further, it offers veterinary services under the Vets4Pets names; and operates pet grooming salons under the Groom Room and Barkers names, as well as water test, first opinion veterinary practice, veterinary surgery, and specialist referral veterinary center services. The company provides its products and services through 448 superstores, 461 practices, 4 veterinary specialist referral centers, and 309 grooming salons. It also provides products and services through its Website. Pets at Home Group Plc was founded in 1991 and is based in Handforth, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 20:50
End of Day Share Price2020/07/06 00:00
Earnings2020/03/26
Annual Earnings2020/03/26


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.