NasdaqGS:PDCO

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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.


Snowflake Analysis

Established dividend payer and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.0%

PDCO

1.0%

US Healthcare

3.8%

US Market


1 Year Return

-3.2%

PDCO

20.1%

US Healthcare

9.7%

US Market

Return vs Industry: PDCO underperformed the US Healthcare industry which returned 18% over the past year.

Return vs Market: PDCO underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

PDCOIndustryMarket
7 Day7.0%1.0%3.8%
30 Day29.7%8.8%11.4%
90 Day-11.7%6.9%6.8%
1 Year2.6%-3.2%21.7%20.1%12.1%9.7%
3 Year-47.7%-54.3%37.6%31.4%36.2%27.2%
5 Year-48.0%-56.5%48.1%38.1%63.7%45.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PDCO ($21.06) is trading below our estimate of fair value ($63.41)

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


Price To Earnings Ratio

PE vs Industry: PDCO is poor value based on its PE Ratio (41x) compared to the Healthcare industry average (23.5x).

PE vs Market: PDCO is poor value based on its PE Ratio (41x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: PDCO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PDCO is good value based on its PB Ratio (1.4x) compared to the US Healthcare industry average (2.8x).


Next Steps

Future Growth

How is Patterson Companies forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

30.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDCO's forecast earnings growth (30.3% per year) is above the savings rate (2.2%).

Earnings vs Market: PDCO's earnings (30.3% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PDCO's revenue (3.1% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: PDCO's revenue (3.1% 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 (8.3%).


Next Steps

Past Performance

How has Patterson Companies performed over the past 5 years?

-13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDCO has high quality earnings.

Growing Profit Margin: PDCO's current net profit margins (0.9%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: PDCO's earnings have declined by -13.8% per year over the past 5 years.

Accelerating Growth: PDCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PDCO had negative earnings growth (-37.8%) over the past year, making it difficult to compare to the Healthcare industry average (10.9%).


Return on Equity

High ROE: PDCO's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Patterson Companies's financial position?


Financial Position Analysis

Short Term Liabilities: PDCO's short term assets ($1.7B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: PDCO's short term assets ($1.7B) exceed its long term liabilities ($840.1M).


Debt to Equity History and Analysis

Debt Level: PDCO's debt to equity ratio (46.9%) is considered high.

Reducing Debt: PDCO's debt to equity ratio has reduced from 49.9% to 46.9% over the past 5 years.

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

Interest Coverage: PDCO's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PDCO's dividend (4.94%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: PDCO's dividend (4.94%) is in the top 25% of dividend payers in the US market (4.32%)


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: With its high payout ratio (202.7%), PDCO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PDCO's dividends in 3 years are forecast to be covered by earnings (63.2% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Mark Walchirk (53yo)

2.58yrs

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

Compensation vs Market: Mark's total compensation ($USD4.41M) is about average for companies of similar size in the US market ($USD4.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Walchirk
CEO, President & Director2.58yrsUS$4.41m0.12% $2.3m
Donald Zurbay
CFO & Treasurer2yrsUS$2.74m0.034% $673.4k
Les Korsh
VP, General Counsel & Secretary4.92yrsUS$2.44m0.035% $698.8k
Andrea Frohning
Chief Human Resources Officer2.08yrsUS$1.07m0.0070% $138.3k
Kevin Pohlman
President of Animal Health International2.92yrsUS$2.14m0.034% $680.7k
Dennis Goedken
Corporate Controller2yrsUS$476.40k0.011% $220.2k
Dave Lardy
Chief Information Officer3.58yrsno datano data
John Wright
Vice President of Investor Relations4.58yrsno datano data
Todd Marshall
Chief Marketing & Digital Officer3.83yrsno datano data
Paul Guggenheim
Chief Innovation Officer4yrsUS$970.71kno data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: PDCO's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Walchirk
CEO, President & Director2.58yrsUS$4.41m0.12% $2.3m
Ellen Rudnick
Independent Director16.5yrsUS$231.01k0.060% $1.2m
Jody Feragen
Independent Director8.75yrsUS$241.01k0.029% $586.1k
John Buck
Independent Non-Executive Chairman of the Board3yrsUS$326.01k0.069% $1.4m
Francis Malecha
Independent Director2yrsUS$206.01k0.012% $229.0k
Neil Schrimsher
Independent Director6.25yrsUS$231.01k0.023% $451.0k
Robert Frenzel
Independent Director2.25yrsUS$223.51k0.012% $229.0k
Alex Blanco
Independent Director3.08yrsUS$223.51k0.015% $293.4k

3.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: PDCO's board of directors are considered experienced (3 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$1.988b
  • 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 segment offers consumable products, including infection control, restorative materials, hand instruments, and sterilization products; basic and advanced technology dental equipment; technology solutions, such as practice management software and e-commerce solutions; patient education systems; and office forms and stationery. It also provides a range of related services comprising software and design services, maintenance and repair, and equipment financing services. The Animal Health segment distributes pharmaceuticals, vaccines, parasiticides, diagnostics, prescription and non-prescription diets, nutritionals, consumable supplies, equipment, and software, as well as value-added services. It also provides private label portfolio of products to veterinarians, producers, and retailers under the Aspen, First Companion, and Patterson Veterinary brands. The company serves dentists, laboratories, institutions, other healthcare professionals, veterinarians, other animal health professionals, production animal operators, and animal health product retailers. The company was formerly known as Patterson Dental Company and changed its name to Patterson Companies, Inc. in June 2004. Patterson Companies, Inc. was founded in 1877 and is headquartered in St. Paul, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:54
End of Day Share Price2020/06/05 00:00
Earnings2020/01/25
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.