NasdaqGS:CVET

Stock Analysis Report

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Executive Summary

Covetrus, Inc., together with its subsidiaries, operates as an animal-health technology and services company. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Covetrus's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CVET is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CVET's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-9.9%

CVET

2.9%

US Healthcare

-4.0%

US Market


1 Year Return

218.2%

CVET

29.8%

US Healthcare

46.6%

US Market

Return vs Industry: CVET exceeded the US Healthcare industry which returned 29.8% over the past year.

Return vs Market: CVET exceeded the US Market which returned 46.6% over the past year.


Shareholder returns

CVETIndustryMarket
7 Day-9.9%2.9%-4.0%
30 Day-16.0%3.8%-4.1%
90 Day6.1%2.1%3.3%
1 Year218.2%218.2%31.5%29.8%49.8%46.6%
3 Yearn/a45.1%39.2%47.8%38.4%
5 Yearn/a82.8%69.5%116.6%92.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Covetrus undervalued compared to its fair value and its price relative to the market?

31.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVET ($30.74) is trading below our estimate of fair value ($44.66)

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


Price To Earnings Ratio

PE vs Industry: CVET is unprofitable, so we can't compare its PE Ratio to the US Healthcare industry average.

PE vs Market: CVET is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CVET's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CVET is good value based on its PB Ratio (2.7x) compared to the US Healthcare industry average (3.4x).


Next Steps

Future Growth

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

62.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVET is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CVET is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CVET's is expected to become profitable in the next 3 years.

Revenue vs Market: CVET's revenue (5.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CVET's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVET's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Covetrus performed over the past 5 years?

-55.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVET is currently unprofitable.

Growing Profit Margin: CVET is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVET is unprofitable, and losses have increased over the past 5 years at a rate of 55.7% per year.

Accelerating Growth: Unable to compare CVET's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CVET is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (16.5%).


Return on Equity

High ROE: CVET has a negative Return on Equity (-1.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Covetrus's financial position?


Financial Position Analysis

Short Term Liabilities: CVET's short term assets ($1.4B) exceed its short term liabilities ($691.0M).

Long Term Liabilities: CVET's short term assets ($1.4B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: CVET's debt to equity ratio (68.2%) is considered high.

Reducing Debt: Insufficient data to determine if CVET's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CVET has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CVET has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Covetrus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CVET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CVET's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CVET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CVET's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CVET's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Ben Wolin (44 yo)

1.42yrs

Tenure

US$4,759,803

Compensation

Mr. Benjamin Wolin, also known as Ben, serves as President and Chief Executive Officer since March 20, 2020 and served as Acting Chief Executive Officer and President of Covetrus, Inc. since October 21, 20...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD4.76M) is about average for companies of similar size in the US market ($USD4.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Benjamin Wolin
CEO, President & Director1.42yrsUS$4.76m0.047%
$ 2.0m
Dustin Finer
Chief Administrative Officer1.25yrsUS$1.55m0.016%
$ 679.2k
Georgina Wraight
Executive VP & President of Global Technology Solutions2.08yrsUS$1.22m0.010%
$ 420.0k
Matthew Foulston
Executive VP & CFO0.75yrno datano data
Laura Phillips
VP, Chief Accounting Officer & Global Controller1.92yrsno data0.0052%
$ 219.0k
Steve Palmucci
Global Chief Information Officer0.83yrno datano data
Nicholas Jansen
Vice President of Investor Relationsno datano datano data
Jamey Seely
General Counsel & Corporate Secretary0.50yrno datano data
Kiní Schoop
Director of Public Relationsno datano datano data
Anthony Providenti
Executive Vice President of Corporate Development2.08yrsno data0.0097%
$ 406.6k
Ditte Wulf
Global Chief Human Resources Officer0.58yrno datano data
Russell Cooke
Senior VP & Operational CFO2.08yrsno datano data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: CVET's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Benjamin Wolin
CEO, President & Director1.42yrsUS$4.76m0.047%
$ 2.0m
Deborah Ellinger
Independent Director2.08yrsUS$305.00k0.0046%
$ 193.5k
Philip Laskawy
Independent Chairman & Lead Independent Director1.42yrsUS$560.00k0.0054%
$ 225.7k
Sandra Helton
Independent Director2.08yrsUS$322.50k0.0046%
$ 193.5k
Sharon Wienbar
Director0.83yrno datano data
Steven Paladino
Director2.92yrsUS$292.50k0.032%
$ 1.3m
Mark Manoff
Independent Director2.08yrsUS$307.50k0.0046%
$ 193.5k
Sandra Peterson
Director0.75yrno datano data
Ravi Sachdev
Independent Director2.08yrsUS$312.50k0.0046%
$ 193.5k
Edward McNamara
Independent Director2.08yrsUS$308.15k0.030%
$ 1.3m

2.1yrs

Average Tenure

61yo

Average Age

Experienced Board: CVET's board of directors are not considered experienced ( 2.1 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.9%.


Top Shareholders

Company Information

Covetrus, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Covetrus, Inc.
  • Ticker: CVET
  • Exchange: NasdaqGS
  • Founded: 2018
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: US$4.188b
  • Shares outstanding: 136.23m
  • Website: https://www.covetrus.com

Number of Employees


Location

  • Covetrus, Inc.
  • 7 Custom House Street
  • Portland
  • Maine
  • 4101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVETNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2019
2NJDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2019
2NJXTRA (XETRA Trading Platform)YesCommon StockDEEURFeb 2019

Biography

Covetrus, Inc., together with its subsidiaries, operates as an animal-health technology and services company. It engages in the sale of animal-health consumable products, including proprietary and Covetrus...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/09 00:47
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.