NasdaqGS:PDCO

Stock Analysis Report

Executive Summary

Patterson Companies, Inc. distributes and sells dental and animal health products in the United States, the United Kingdom, and Canada.

Snowflake

Fundamentals

6 star dividend payer and undervalued.

Risks

  • Patterson Companies has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

NasdaqGS:PDCO

0.1%

US Healthcare

0.8%

US Market


1 Year Return

-27.9%

NasdaqGS:PDCO

-8.4%

US Healthcare

1.9%

US Market

PDCO underperformed the Healthcare industry which returned -7.7% over the past year.

PDCO underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

PDCOIndustryMarket
7 Day0.2%0.1%0.8%
30 Day7.0%-1.4%3.4%
90 Day-22.3%-0.7%2.1%
1 Year-24.4%-27.9%-7.0%-8.4%4.2%1.9%
3 Year-56.7%-61.1%30.6%25.3%46.7%37.2%
5 Year-49.8%-56.6%64.9%55.1%62.3%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Patterson Companies undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Patterson Companies's share price is below the future cash flow value, and at a moderate discount (> 20%).

Patterson Companies's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Patterson Companies is good value based on earnings compared to the US Healthcare industry average.

Patterson Companies is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Patterson Companies is poor value based on expected growth next year.


Price Based on Value of Assets

Patterson Companies is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Patterson Companies expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Patterson Companies's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Patterson Companies's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Patterson Companies's revenue growth is positive but not above the United States of America market average.

Patterson Companies's earnings growth is positive but not above the United States of America market average.

Patterson Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Patterson Companies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Patterson Companies performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Patterson Companies's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Patterson Companies's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Patterson Companies's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.


Return on Equity

Patterson Companies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Patterson Companies used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Patterson Companies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Patterson Companies's financial position?


Financial Position Analysis

Patterson Companies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Patterson Companies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Patterson Companies's level of debt (49.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (49.5% vs 49.9% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

6.16%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Patterson Companies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Patterson Companies's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

What is the CEO of Patterson Companies's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Mark Walchirk (53yo)

1.8yrs

Tenure

US$4,408,631

Compensation

Mr. Mark S. Walchirk has been the Chief Executive Officer and President of Patterson Companies, Inc. since November 20, 2017. Mr. Walchirk served as the President of U.S. Pharmaceutical at McKesson Corpora ...


CEO Compensation Analysis

Mark's remuneration is about average for companies of similar size in United States of America.

Insufficient data for Mark to compare compensation growth.


Management Age and Tenure

2.2yrs

Average Tenure

53yo

Average Age

The tenure for the Patterson Companies management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

58yo

Average Age

The average tenure for the Patterson Companies board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paul Guggenheim (59yo)

    President of Patterson Dental - Western Region

    • Tenure: 0yrs
    • Compensation: US$970.71k
  • John Wright

    Vice President of Investor Relations

    • Tenure: 3.8yrs
  • Don Zurbay (51yo)

    CFO & Treasurer

    • Tenure: 1.3yrs
    • Compensation: US$2.74m
  • Mark Walchirk (53yo)

    CEO, President & Director

    • Tenure: 1.8yrs
    • Compensation: US$4.41m
  • Kevin Pohlman (56yo)

    President of Animal Health International

    • Tenure: 2.2yrs
    • Compensation: US$2.14m
  • Andrea Frohning (49yo)

    Chief Human Resources Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.07m
  • Todd Marshall

    Chief Marketing & Digital Officer

    • Tenure: 3.1yrs
  • Les Korsh (49yo)

    VP, General Counsel & Secretary

    • Tenure: 4.2yrs
    • Compensation: US$2.44m
  • Dave Lardy

    Chief Information Officer

    • Tenure: 2.8yrs
  • Dennis Goedken (57yo)

    Corporate Controller

    • Tenure: 1.3yrs
    • Compensation: US$476.40k

Board Members

  • Ellen Rudnick (68yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$231.01k
  • Jim Wiltz (74yo)

    Director

    • Tenure: 18.5yrs
    • Compensation: US$206.01k
  • Jody Feragen (63yo)

    Director

    • Tenure: 8yrs
    • Compensation: US$241.01k
  • John Buck (68yo)

    Non-Executive Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$326.01k
  • Fran Malecha (55yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$206.01k
  • Neil Schrimsher (55yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$231.01k
  • Mark Walchirk (53yo)

    CEO, President & Director

    • Tenure: 1.8yrs
    • Compensation: US$4.41m
  • Bob Frenzel (48yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$223.51k
  • Alex Blanco (58yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$223.51k

Company Information

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


Key Information

  • Name: Patterson Companies, Inc.
  • Ticker: PDCO
  • Exchange: NasdaqGS
  • Founded: 1877
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: US$1.699b
  • Shares outstanding: 94.38m
  • Website: https://www.pattersoncompanies.com

Number of Employees


Location

  • Patterson Companies, Inc.
  • 1031 Mendota Heights Road
  • St. Paul
  • Minnesota
  • 55120
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1992
PD2DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1992
0KGBLSE (London Stock Exchange)YesCommon StockGBUSDOct 1992

Biography

Patterson Companies, Inc. distributes and sells dental and animal health products in the United States, the United Kingdom, and Canada. It operates through Dental and Animal Health segments. The Dental seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:51
End of Day Share Price2019/09/17 00:00
Earnings2019/07/27
Annual Earnings2019/04/27


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.