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CVET

CovetrusNasdaqGS:CVET Stock Report

Last Price

US$17.32

Market Cap

US$2.4b

7D

6.5%

1Y

-55.3%

Updated

21 Jan, 2022

Data

Company Financials +
CVET fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends0/6

CVET Stock Overview

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

Covetrus Competitors

AmerisourceBergen

NYSE:ABC

US$27.4b

Patterson Companies

NasdaqGS:PDCO

US$2.7b

Amazon.com

NasdaqGS:AMZN

US$1.4t

IDEXX Laboratories

NasdaqGS:IDXX

US$42.6b

Price History & Performance

Summary of all time highs, changes and price drops for Covetrus
Historical stock prices
Current Share PriceUS$17.32
52 Week HighUS$40.78
52 Week LowUS$15.71
Beta2.11
1 Month Change-11.81%
3 Month Change-14.22%
1 Year Change-55.29%
3 Year Changen/a
5 Year Changen/a
Change since IPO-58.76%

Recent News & Updates

Jan 07
Are Investors Undervaluing Covetrus, Inc. (NASDAQ:CVET) By 40%?

Are Investors Undervaluing Covetrus, Inc. (NASDAQ:CVET) By 40%?

Today we will run through one way of estimating the intrinsic value of Covetrus, Inc. ( NASDAQ:CVET ) by taking the...

Shareholder Returns

CVETUS HealthcareUS Market
7D6.5%-2.1%-4.0%
1Y-55.3%12.8%6.6%

Return vs Industry: CVET underperformed the US Healthcare industry which returned 12.8% over the past year.

Return vs Market: CVET underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is CVET's price volatile compared to industry and market?
CVET volatility
CVET Average Weekly Movement7.4%
Healthcare Industry Average Movement8.0%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: CVET is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CVET's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20185,466Ben Wolinhttps://www.covetrus.com

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 branded products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, parasiticides, and vitamins and supplements to wholesale and retail customers. The company also offers value-added solutions that include, inventory management and e-commerce, as well as continuing education services for practitioners.

Covetrus Fundamentals Summary

How do Covetrus's earnings and revenue compare to its market cap?
CVET fundamental statistics
Market CapUS$2.39b
Earnings (TTM)-US$56.00m
Revenue (TTM)US$4.58b

0.5x

P/S Ratio

-42.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVET income statement (TTM)
RevenueUS$4.58b
Cost of RevenueUS$3.72b
Gross ProfitUS$852.00m
ExpensesUS$908.00m
Earnings-US$56.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.41
Gross Margin18.62%
Net Profit Margin-1.22%
Debt/Equity Ratio67.3%

How did CVET perform over the long term?

See historical performance and comparison

Valuation

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

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVET ($17.32) is trading below our estimate of fair value ($29.19)

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 (1.6x) compared to the US Healthcare industry average (2.6x).


Future Growth

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

45.7%

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 (6.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CVET's revenue (6.3% 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 (10.2%).


Past Performance

How has Covetrus performed over the past 5 years?

-33.4%

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 33.4% 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 (32.5%).


Return on Equity

High ROE: CVET has a negative Return on Equity (-3.54%), as it is currently unprofitable.


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 ($714.0M).

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 net debt to equity ratio (55.1%) 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: Whilst unprofitable CVET has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CVET is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 25.8% per year.


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?

1.6yrs

Average management tenure


CEO

Ben Wolin (45 yo)

2.25yrs

Tenure

US$4,490,990

Compensation

Mr. Benjamin Wolin, also known as Ben, serves as Director at Apploi Corp. He serves as President and Chief Executive Officer since March 20, 2020 and served as Acting Chief Executive Officer and President...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD4.49M) is about average for companies of similar size in the US market ($USD3.73M).

Compensation vs Earnings: Ben's compensation has been consistent with company performance over the past year.


Leadership Team

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


Board Members

Experienced Board: CVET's board of directors are not considered experienced ( 2.9 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 8.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Covetrus, Inc.
  • Ticker: CVET
  • Exchange: NasdaqGS
  • Founded: 2018
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Implied Market Cap: US$2.386b
  • Shares outstanding: 137.78m
  • Website: https://www.covetrus.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:57
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
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.