NasdaqGS:PETQ

Stock Analysis Report

Executive Summary

PetIQ, Inc. operates as a pet health and wellness company.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Risks

  • PetIQ has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

PETQ

0.008%

US Healthcare

-0.2%

US Market


1 Year Return

-37.8%

PETQ

-9.0%

US Healthcare

1.1%

US Market

PETQ underperformed the Healthcare industry which returned -9.4% over the past year.

PETQ underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

PETQIndustryMarket
7 Day-2.8%0.008%-0.2%
30 Day-19.0%-0.8%2.5%
90 Day-18.9%-1.5%1.6%
1 Year-37.8%-37.8%-7.6%-9.0%3.4%1.1%
3 Yearn/a29.6%24.4%45.2%35.8%
5 Yearn/a66.2%56.2%62.6%44.8%

Price Volatility Vs. Market

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


Simply Wall St News

2 weeks ago | Simply Wall St

Is PetIQ (NASDAQ:PETQ) A Risky Investment?

2 months ago | Simply Wall St

Should You Worry About PetIQ, Inc.’s (NASDAQ:PETQ) ROCE?

Valuation

Is PetIQ 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

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

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


Price Based on Earnings

PetIQ is overvalued based on earnings compared to the US Healthcare industry average.

PetIQ is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

PetIQ is poor value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is PetIQ expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

77.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PetIQ's revenue is expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).

PetIQ's earnings are expected to grow significantly at over 20% yearly.

PetIQ's revenue growth is expected to exceed the United States of America market average.

PetIQ's earnings growth is expected to exceed the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if PetIQ will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has PetIQ performed over the past 5 years?

67.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PetIQ has delivered over 20% year on year earnings growth in the past 5 years.

PetIQ has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

PetIQ has become profitable in the last year making it difficult to compare the US Healthcare industry average.


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is PetIQ's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

PetIQ's level of debt (29.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if PetIQ's debt level has increased without past 5-year debt data.

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

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate PetIQ's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate PetIQ's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as PetIQ has not reported any payouts.

Unable to verify if PetIQ's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as PetIQ has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

McCord Christensen (47yo)

9.7yrs

Tenure

US$2,467,440

Compensation

Mr. McCord Christensen serves as Chief Executive Officer of PetIQ, Inc. Mr. Christensen is the Co-Founder of PetIQ, Inc. in 2010. He gained extensive retail and management experience working at Albertson’s ...


CEO Compensation Analysis

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

McCord's compensation has increased in line with PetIQ recently becoming profitable.


Management Age and Tenure

0.9yrs

Average Tenure

50yo

Average Age

The average tenure for the PetIQ management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

50.5yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$8,49014 Jun 19
Susan Sholtis
EntityIndividual
Role
President
President
Shares291
Max PriceUS$29.18
BuyUS$872,58516 May 19
James Clarke
EntityIndividual
Role
Member of the Board of Directors
Director
Shares31,031
Max PriceUS$28.48
SellUS$629,49506 Dec 18
McCord Christensen
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares20,000
Max PriceUS$31.83
SellUS$68,308,16002 Oct 18
Eos
EntityCompany
Shares1,838,836
Max PriceUS$37.15

Ownership Breakdown


Management Team

  • Susan Sholtis (53yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$2.43m
  • McCord Christensen (47yo)

    Chairman of the Board & CEO

    • Tenure: 9.7yrs
    • Compensation: US$2.47m
  • John Newland (55yo)

    Chief Financial Officer

    • Tenure: 5.7yrs
    • Compensation: US$1.49m
  • Robert Herrman

    General Counsel & Secretary

    • Tenure: 0.6yrs
  • Michael Smith (42yo)

    Executive Vice President of Products Division

    • Tenure: 0.2yrs

Board Members

  • Mark First (54yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$62.52k
  • Gary Michael (79yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$63.01k
  • Scott Huff (47yo)

    Director

    • Tenure: 0.08yrs
  • McCord Christensen (47yo)

    Chairman of the Board & CEO

    • Tenure: 9.7yrs
    • Compensation: US$2.47m
  • James Clarke (46yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$58.01k
  • Ronald Kennedy (72yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$53.01k
  • Will Santana (46yo)

    Director

    • Tenure: 1.7yrs
  • Larry Bird (64yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$103.00k

Company Information

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


Key Information

  • Name: PetIQ, Inc.
  • Ticker: PETQ
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Implied Market Cap: US$739.731m
  • Market Cap: US$594.414m
  • Shares outstanding: 28.22m
  • Website: https://www.petiq.com

Number of Employees


Location

  • PetIQ, Inc.
  • 923 South Bridgeway Place
  • Eagle
  • Idaho
  • 83616
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
39LDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2017
PETQNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 2017

Biography

PetIQ, Inc. operates as a pet health and wellness company. It operates through two segments, Products and Services. It manufactures and distributes veterinarian services and veterinarian-grade pet products ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 01:17
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.