NasdaqGS:PDCO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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

Stable Share Price: PDCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

PDCO

-1.1%

US Healthcare

-2.4%

US Market


1 Year Return

54.3%

PDCO

18.6%

US Healthcare

18.2%

US Market

Return vs Industry: PDCO exceeded the US Healthcare industry which returned 22.1% over the past year.

Return vs Market: PDCO exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

PDCOIndustryMarket
7 Day3.5%-1.1%-2.4%
30 Day12.0%5.0%4.2%
90 Day3.7%2.9%6.3%
1 Year62.4%54.3%20.2%18.6%20.9%18.2%
3 Year-23.0%-33.3%31.7%26.1%41.2%31.8%
5 Year-31.1%-43.0%59.2%47.7%84.8%63.9%

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 compared to its fair value and its price relative to the market?

2.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PDCO ($26.6) is trading above our estimate of fair value ($26.4)

Significantly Below Fair Value: PDCO is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: PDCO 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 PDCO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PDCO is good value based on its PB Ratio (3x) compared to the US Healthcare industry average (3.1x).


Next Steps

Future Growth

How is Patterson Companies forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDCO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: PDCO's revenue (3.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PDCO's revenue (3.3% 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 (11%).


Next Steps

Past Performance

How has Patterson Companies performed over the past 5 years?

-47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDCO is currently unprofitable.

Growing Profit Margin: PDCO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PDCO is unprofitable, and losses have increased over the past 5 years at a rate of 47.5% per year.

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

Earnings vs Industry: PDCO is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (28%).


Return on Equity

High ROE: PDCO has a negative Return on Equity (-69.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is Patterson Companies's financial position?


Financial Position Analysis

Short Term Liabilities: PDCO's short term assets ($1.5B) exceed its short term liabilities ($978.8M).

Long Term Liabilities: PDCO's short term assets ($1.5B) exceed its long term liabilities ($812.7M).


Debt to Equity History and Analysis

Debt Level: PDCO's debt to equity ratio (86.8%) is considered high.

Reducing Debt: PDCO's debt to equity ratio has reduced from 110.6% to 86.8% over the past 5 years.

Debt Coverage: PDCO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PDCO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PDCO's dividend (3.91%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: PDCO's dividend (3.91%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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.


Current Payout to Shareholders

Dividend Coverage: PDCO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PDCO's dividends in 3 years are forecast to be covered by earnings (57.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Healthcare industry.

Management

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

2.9yrs

Average management tenure


CEO

Mark Walchirk (54 yo)

2.92yrs

Tenure

US$5,859,504

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

Compensation vs Market: Mark's total compensation ($USD5.86M) is about average for companies of similar size in the US market ($USD5.61M).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Walchirk
CEO, President & Director2.92yrsUS$5.86m0.065%
$ 1.6m
Donald Zurbay
CFO & Treasurer2.33yrsUS$2.32m0.028%
$ 700.1k
Les Korsh
VP, General Counsel & Secretary5.25yrsUS$1.26m0.039%
$ 991.5k
Andrea Frohning
Chief Human Resources Officer2.42yrsUS$1.18m0.0017%
$ 44.1k
Eric Shirley
President of the Dental Business Unit1.75yrsUS$1.29m0.00089%
$ 22.5k
Dave Lardy
Chief Information Officer3.92yrsno datano data
John Wright
Vice President of Investor Relations4.92yrsno datano data
Shivani Kaul
Chief Compliance Officer0.58yrno datano data
Paul Guggenheim
Chief Innovation Officer4.33yrsUS$970.71kno data
Kevin Pohlman
President of Animal Health International3.25yrsUS$2.14m0.042%
$ 1.1m
Dennis Goedken
Corporate Controller2.33yrsUS$476.40k0.011%
$ 278.3k
George Henriques
Chief Commercial Officer of Patterson Veterinary Supplyno dataUS$1.50mno data

2.9yrs

Average Tenure

54yo

Average Age

Experienced Management: PDCO's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Walchirk
CEO, President & Director2.92yrsUS$5.86m0.065%
$ 1.6m
Ellen Rudnick
Independent Director16.83yrsUS$231.00k0.064%
$ 1.6m
Jody Feragen
Independent Director9.08yrsUS$242.88k0.034%
$ 865.4k
John Buck
Independent Non-Executive Chairman of the Board3.33yrsUS$326.00k0.074%
$ 1.9m
Francis Malecha
Independent Director2.33yrsUS$272.25k0.016%
$ 414.2k
Neil Schrimsher
Independent Director6.58yrsUS$234.75k0.027%
$ 694.8k
Robert Frenzel
Independent Director2.58yrsUS$281.00k0.016%
$ 414.2k
Alex Blanco
Independent Director3.42yrsUS$277.25k0.020%
$ 495.8k

3.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PDCO's board of directors are considered experienced (3.4 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

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$2.532b
  • Shares outstanding: 95.19m
  • Website: https://www.pattersoncompanies.com

Number of Employees


Location

  • Patterson Companies, Inc.
  • 1031 Mendota Heights Road
  • Saint 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 three segments; Dental, Animal Health, and Corpor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:02
End of Day Share Price2020/10/19 00:00
Earnings2020/07/25
Annual Earnings2020/04/25


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.