PDCO

Patterson CompaniesNasdaqGS:PDCO Stock Report

Market Cap

US$3.1b

7D

-2.3%

1Y

28.7%

Updated

16 Sep, 2021

Data

Company Financials +
PDCO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance1/6
Financial Health4/6
Dividends5/6

PDCO Overview

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

Patterson Companies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Patterson Companies
Historical stock prices
Current Share PriceUS$31.41
52 Week HighUS$22.15
52 Week LowUS$37.37
Beta1.56
1 Month Change5.05%
3 Month Change-9.09%
1 Year Change28.73%
3 Year Change23.47%
5 Year Change-33.43%
Change since IPO1,492.62%

Recent News & Updates

Sep 07
Here's Why We Think Patterson Companies, Inc.'s (NASDAQ:PDCO) CEO Compensation Looks Fair for the time being

Here's Why We Think Patterson Companies, Inc.'s (NASDAQ:PDCO) CEO Compensation Looks Fair for the time being

Performance at Patterson Companies, Inc. ( NASDAQ:PDCO ) has been reasonably good and CEO Mark Walchirk has done a...

Jul 30
Return Trends At Patterson Companies (NASDAQ:PDCO) Aren't Appealing

Return Trends At Patterson Companies (NASDAQ:PDCO) Aren't Appealing

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

PDCOUS HealthcareUS Market
7D-2.3%-0.8%-0.6%
1Y28.7%32.7%33.6%

Return vs Industry: PDCO underperformed the US Healthcare industry which returned 33% over the past year.

Return vs Market: PDCO underperformed the US Market which returned 33.7% over the past year.

Price Volatility

Is PDCO's price volatile compared to industry and market?
PDCO volatility
PDCO Beta1.56
Industry Beta0.87
Market Beta1

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

FoundedEmployeesCEOWebsite
18777,800Mark Walchirkhttps://www.pattersoncompanies.com

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 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.

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 ($31.41) is trading below our estimate of fair value ($66.01)

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


Price To Earnings Ratio

PE vs Industry: PDCO is good value based on its PE Ratio (18.4x) compared to the US Healthcare industry average (22.5x).

PE vs Market: PDCO is poor value based on its PE Ratio (18.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PDCO is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: PDCO is good value based on its PB Ratio (3.1x) compared to the US Healthcare industry average (3.3x).


Future Growth

How is Patterson Companies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDCO's forecast earnings growth (6.7% per year) is above the savings rate (2%).

Earnings vs Market: PDCO's earnings (6.7% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: PDCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: PDCO's revenue (2.1% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: PDCO's revenue (2.1% 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 (16.4%).


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 has a high level of non-cash earnings.

Growing Profit Margin: PDCO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PDCO's earnings have declined by 47.5% per year over the past 5 years.

Accelerating Growth: PDCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PDCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (32.2%).


Return on Equity

High ROE: PDCO's Return on Equity (16.8%) is considered low.


Financial Health

How is Patterson Companies's financial position?


Financial Position Analysis

Short Term Liabilities: PDCO's short term assets ($1.6B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: PDCO's short term assets ($1.6B) exceed its long term liabilities ($702.4M).


Debt to Equity History and Analysis

Debt Level: PDCO's debt to equity ratio (65.3%) is considered high.

Reducing Debt: PDCO's debt to equity ratio has reduced from 80.7% to 65.3% 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 well covered by EBIT (22.5x coverage).


Balance Sheet


Dividend

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

3.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PDCO's dividend (3.31%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: PDCO's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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 reasonable payout ratio (60.3%), PDCO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PDCO's dividends in 3 years are forecast to be well covered by earnings (45.7% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Mark Walchirk (55 yo)

3.83yrs

Tenure

US$4,757,845

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 ($USD4.76M) is about average for companies of similar size in the US market ($USD5.25M).

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


Leadership Team

Experienced Management: PDCO's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: PDCO's board of directors are considered experienced (4.3 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Patterson Companies, Inc.'s 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$3.054b
  • Shares outstanding: 97.23m
  • Website: https://www.pattersoncompanies.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:50
End of Day Share Price2021/09/16 00:00
Earnings2021/07/31
Annual Earnings2021/04/24


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.