PDCO Stock Overview
Patterson Companies, Inc. engages in distribution of dental and animal health products in the United States, the United Kingdom, and Canada.
Patterson Companies Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$25.28|
|52 Week High||US$35.29|
|52 Week Low||US$24.94|
|1 Month Change||-13.93%|
|3 Month Change||-11.21%|
|1 Year Change||-16.92%|
|3 Year Change||42.50%|
|5 Year Change||-34.59%|
|Change since IPO||1,181.80%|
Recent News & Updates
Patterson Companies: Looking Past The Earnings Disappointment
Summary Patterson’s Q1 2023 earnings report disappointed amid weakness in the dental business. The reiterated guidance indicates continued resilience in animal health, though, with dental also benefiting from several post-Q1 tailwinds. With the stock trading cheaply relative to peers and offering a solid yield, the risk/reward is attractive at current levels. Dental and animal health product distributor Patterson Companies (PDCO) fell short of Street expectations in its most recent quarter amid weakness across dental consumables and equipment, outweighing resilience in the animal health business. The revenue miss and a hotter-than-expected opex led to a weaker operating margin result as well, sending the stock lower post-quarter. While the pessimism is warranted, I would look past the Q1 2023 weakness given the attractive exposure to secular growth trends, as well as the track record of beats-and-raises PDCO management has built over the years. To be clear, there remain risks - the current guidance implies a steeper EPS ramp in the back half of the year, and the macro environment is as challenging as ever. Still, management's confidence in its ability to hit the reaffirmed FY23 guidance numbers, as well as its strong execution track record, are key positives. Relative to the unchanged EPS estimates, PDCO stock trades at a discounted ~11x fwd P/E (vs. peers) and offers an attractive ~4% dividend yield to patient investors. YCharts Puts and Takes from the Underwhelming Headline Numbers PDCO kicked off the first quarter of its 2023 fiscal year with disappointing numbers across the board - non-GAAP EPS at $0.32 fell ~25% YoY, while sales of $1.5bn were down ~6% YoY on a reported basis. Some context is needed, though, given the YoY comparison is skewed by an extra selling week (~7% negative impact on revenue growth). On a normalized basis (i.e., accounting for the extra week), revenue would have been up a resilient ~3% YoY despite additional headwinds from a stronger dollar. Patterson Companies PDCO’s gross margin at 20.5% (+330bps YoY) was the only bright spot this quarter, benefiting from product mix shifts within PDCO’s key segments (i.e., dental and animal health) and recent freight surcharge actions. The combination of lower revenue and higher operating expenses (mainly from the dental business) weighed on the rest of the P&L, though, as operating margins were down YoY. To a lesser degree, margins were also impacted by expense timing, as PDCO’s national sales conferences for the dental and animal health businesses occurred earlier than expected in the first quarter of this year. The $0.02-0.03/share impact for this period should reverse throughout the year, though, providing a small earnings tailwind to earnings in the coming quarters. Dental Equipment Lags; Resilient Animal Health Leads Dental equipment sales were the key laggard this time around, in stark contrast to last quarter’s impressive double-digit % gains, as industry-wide headwinds in COVID/PPE products weighed. There were silver linings, though – while total dental consumables sales fell 2.7%, sales would have grown 1.9% (a ~100bps Q/Q deceleration) adjusted for infection prevention products. Core equipment results were also up in the solid double-digits % YoY amid normalizing supply chain progress, but the declines in digital equipment and computer-aided design/manufacturing are concerning coming off the prior quarter’s strength. Patterson Companies Animal health results were fairly resilient, led by strong livestock growth of ~8%. While this was below the double-digit % growth last quarter, the segment still outpaced the broader market and, more surprisingly, the mid-single-digit % companion animal growth. Given the companion animal sub-segment has historically shown stronger growth potential, the current performance could signal a slowdown in the pet market and/or PDCO-specific outperformance on the production animal side of things. Bears will point to the modestly lower vet traffic trend as a reason for caution, but management commentary supported the sustainability of the Q1 resilience, as vet clinics remain at capacity and per-visit spending is also on the rise. Patterson Companies Guidance Surprisingly Intact Despite the Q1 Miss Somewhat surprisingly, PDCO maintained its full-year expectations despite the first quarter setback. Management’s rationale is twofold – for one, the company has seen share gains in its animal health and dental equipment businesses, and perhaps more importantly, management sees equipment demand staying robust through the rest of the fiscal year. I suspect the latter point could be valid given the healthy basic equipment backlog, helping to offset any deceleration in companion animal spending in the coming quarters.
Patterson declares $0.26 dividend
Patterson (NASDAQ:PDCO) declares $0.26/share quarterly dividend, in line with previous. Forward yield 3.94% Payable Nov. 4; for shareholders of record Oct. 21; ex-div Oct. 20. See PDCO Dividend Scorecard, Yield Chart, & Dividend Growth.
At US$27.89, Is Patterson Companies, Inc. (NASDAQ:PDCO) Worth Looking At Closely?
While Patterson Companies, Inc. ( NASDAQ:PDCO ) might not be the most widely known stock at the moment, it received a...
Patterson FQ1 2023 Earnings Preview
Patterson (NASDAQ:PDCO) is scheduled to announce FQ1 earnings results on Thursday, September 1st, before market open. The consensus EPS Estimate is $0.38 (-12.25% Y/Y) and the consensus Revenue Estimate is $1.55B (-4.04% Y/Y). Over the last 2 years, PDCO has beaten EPS and revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 0 upward revision and 10 downward revisions. Revenue estimates have seen 2 upward revisions and 6 downward revisions.
|PDCO||US Healthcare||US Market|
Return vs Industry: PDCO underperformed the US Healthcare industry which returned 6.1% over the past year.
Return vs Market: PDCO exceeded the US Market which returned -23.1% over the past year.
|PDCO Average Weekly Movement||4.9%|
|Healthcare Industry Average Movement||8.4%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: PDCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: PDCO's weekly volatility (5%) has been stable over the past year.
About the Company
Patterson Companies, Inc. engages in distribution of dental and animal health products in the United States, the United Kingdom, and Canada. The company operates through three segments: Dental, Animal Health, and Corporate segments. The Dental segment offers consumable products, including infection control, restorative materials, and instruments; basic and advanced technology and dental equipment; practice optimization solutions, such as practice management software, e-commerce, revenue cycle management, patient engagement solutions, and clinical and patient education systems.
Patterson Companies Fundamentals Summary
|PDCO fundamental statistics|
Is PDCO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PDCO income statement (TTM)|
|Cost of Revenue||US$5.08b|
Last Reported Earnings
Jul 30, 2022
Next Earnings Date
|Earnings per share (EPS)||2.00|
|Net Profit Margin||3.02%|
How did PDCO perform over the long term?See historical performance and comparison
4.1%Current Dividend Yield
Does PDCO pay a reliable dividends?See PDCO dividend history and benchmarks
|Patterson Companies dividend dates|
|Ex Dividend Date||Oct 20 2022|
|Dividend Pay Date||Nov 04 2022|
|Days until Ex dividend||24 days|
|Days until Dividend pay date||39 days|
Does PDCO pay a reliable dividends?See PDCO dividend history and benchmarks
Is PDCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PDCO?
Other financial metrics that can be useful for relative valuation.
|What is PDCO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does PDCO's PE Ratio compare to its peers?
|PDCO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
OMI Owens & Minor
HSIC Henry Schein
PDCO Patterson Companies
Price-To-Earnings vs Peers: PDCO is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (15.7x).
Price to Earnings Ratio vs Industry
How does PDCO's PE Ratio compare vs other companies in the US Healthcare Industry?
Price-To-Earnings vs Industry: PDCO is good value based on its Price-To-Earnings Ratio (12.6x) compared to the US Healthcare industry average (18.4x)
Price to Earnings Ratio vs Fair Ratio
What is PDCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||12.6x|
|Fair PE Ratio||22.4x|
Price-To-Earnings vs Fair Ratio: PDCO is good value based on its Price-To-Earnings Ratio (12.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.4x).
Share Price vs Fair Value
What is the Fair Price of PDCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PDCO ($25.28) is trading below our estimate of fair value ($40.6)
Significantly Below Fair Value: PDCO is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
Discover undervalued companies
How is Patterson Companies forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PDCO's forecast earnings growth (7.3% per year) is above the savings rate (1.9%).
Earnings vs Market: PDCO's earnings (7.3% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: PDCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: PDCO's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PDCO's revenue (3.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PDCO's Return on Equity is forecast to be low in 3 years time (18.6%).
Discover growth companies
How has Patterson Companies performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PDCO has a high level of non-cash earnings.
Growing Profit Margin: PDCO's current net profit margins (3%) are higher than last year (2.6%).
Past Earnings Growth Analysis
Earnings Trend: PDCO's earnings have declined by 14.4% per year over the past 5 years.
Accelerating Growth: PDCO's earnings growth over the past year (17.1%) exceeds its 5-year average (-14.4% per year).
Earnings vs Industry: PDCO earnings growth over the past year (17.1%) exceeded the Healthcare industry 3.2%.
Return on Equity
High ROE: PDCO's Return on Equity (18.7%) is considered low.
Discover strong past performing companies
How is Patterson Companies's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: PDCO's short term assets ($1.7B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: PDCO's short term assets ($1.7B) exceed its long term liabilities ($687.8M).
Debt to Equity History and Analysis
Debt Level: PDCO's net debt to equity ratio (47.6%) is considered high.
Reducing Debt: PDCO's debt to equity ratio has reduced from 84.9% to 62.5% over the past 5 years.
Debt Coverage: PDCO's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: PDCO earns more interest than it pays, so coverage of interest payments is not a concern.
Discover healthy companies
What is Patterson Companies's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PDCO's dividend (4.11%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: PDCO's dividend (4.11%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Stability and Growth of Payments
Stable Dividend: PDCO's dividends per share have been stable in the past 10 years.
Growing Dividend: PDCO's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (52.2%), PDCO's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: PDCO is paying a dividend but the company has no free cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Walchirk (56 yo)
Mr. Mark S. Walchirk has been the Chief Executive Officer and President of Patterson Companies, Inc. since November 20, 2017. Mr. Walchirk served as the President of U.S. Pharmaceutical at McKesson Corpora...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD7.14M) is about average for companies of similar size in the US market ($USD6.95M).
Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.
Experienced Management: PDCO's management team is considered experienced (4.6 years average tenure).
Experienced Board: PDCO's board of directors are considered experienced (7 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Patterson Companies, Inc.'s employee growth, exchange listings and data sources
- Name: Patterson Companies, Inc.
- Ticker: PDCO
- Exchange: NasdaqGS
- Founded: 1877
- Industry: Health Care Distributors
- Sector: Healthcare
- Implied Market Cap: US$2.450b
- Shares outstanding: 96.90m
- Website: https://www.pattersoncompanies.com
Number of Employees
- Patterson Companies, Inc.
- 1031 Mendota Heights Road
- Saint Paul
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PDCO||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Oct 1992|
|PD2||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Oct 1992|
|PD2||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1992|
|0KGB||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Oct 1992|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 00:00|
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.