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PETS

PetMed ExpressNasdaqGS:PETS Stock Report

Last Price

US$24.01

Market Cap

US$485.2m

7D

0.08%

1Y

-22.2%

Updated

21 Jan, 2022

Data

Company Financials +
PETS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends4/6

PETS Stock Overview

PetMed Express, Inc., together with its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States.

PetMed Express Competitors

Chewy

NYSE:CHWY

US$15.9b

Herbalife Nutrition

NYSE:HLF

US$4.5b

Nu Skin Enterprises

NYSE:NUS

US$2.5b

Covetrus

NasdaqGS:CVET

US$2.4b

Price History & Performance

Summary of all time highs, changes and price drops for PetMed Express
Historical stock prices
Current Share PriceUS$24.01
52 Week HighUS$57.00
52 Week LowUS$23.40
Beta0.51
1 Month Change-8.39%
3 Month Change-11.24%
1 Year Change-22.22%
3 Year Change6.00%
5 Year Change14.33%
Change since IPO1,820.80%

Recent News & Updates

Jan 17

PetMed Express: Avoid For Now

PetMed Express is aiming to recover its growth trajectory. Cost of customer acquisition is rapidly increasing with competition. Avoid the stock until a visible turnaround or sizable valuation haircut.

Sep 26

PetMed Express Needs A White Knight

Save for a brief July dip, PETS stock is at its lowest level in 18 months. Fundamental valuation suggests the stock is oversold; competitive dynamics argue otherwise. A new CEO could perhaps right the ship, but the easiest path to success seems to be a sale to a larger industry player that can accelerate growth. Betting on that sale, right now, seems unwise. PETS increasingly looks like a value trap.

Shareholder Returns

PETSUS Online RetailUS Market
7D0.08%-4.0%-4.0%
1Y-22.2%-25.9%6.6%

Return vs Industry: PETS exceeded the US Online Retail industry which returned -25.9% over the past year.

Return vs Market: PETS underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is PETS's price volatile compared to industry and market?
PETS volatility
PETS Average Weekly Movement5.7%
Online Retail Industry Average Movement10.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: PETS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PETS's weekly volatility has decreased from 13% to 6% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996219Matt Huletthttps://www.1800petmeds.com

PetMed Express, Inc., together with its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, and other health products for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes.

PetMed Express Fundamentals Summary

How do PetMed Express's earnings and revenue compare to its market cap?
PETS fundamental statistics
Market CapUS$485.20m
Earnings (TTM)US$25.20m
Revenue (TTM)US$284.27m

19.3x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PETS income statement (TTM)
RevenueUS$284.27m
Cost of RevenueUS$203.17m
Gross ProfitUS$81.10m
ExpensesUS$55.90m
EarningsUS$25.20m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 24, 2022

Earnings per share (EPS)1.25
Gross Margin28.53%
Net Profit Margin8.86%
Debt/Equity Ratio0.0%

How did PETS perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

93%

Payout Ratio

Valuation

Is PetMed Express undervalued compared to its fair value and its price relative to the market?

29.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PETS ($24.01) is trading below our estimate of fair value ($34.16)

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


Price To Earnings Ratio

PE vs Industry: PETS's PE Ratio (19.3x) is in line with the US Online Retail industry average.

PE vs Market: PETS is poor value based on its PE Ratio (19.3x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: PETS is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PETS is overvalued based on its PB Ratio (3.4x) compared to the US Online Retail industry average (2.7x).


Future Growth

How is PetMed Express forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETS's forecast earnings growth (17% per year) is above the savings rate (2%).

Earnings vs Market: PETS's earnings (17% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: PETS's revenue (4.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PETS's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PETS's Return on Equity is forecast to be low in 3 years time (18.9%).


Past Performance

How has PetMed Express performed over the past 5 years?

4.1%

Historical annual revenue growth


Earnings and Revenue History

Quality Earnings: PETS has high quality earnings.

Growing Profit Margin: PETS's current net profit margins (8.9%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: PETS's earnings have grown by 0% per year over the past 5 years.

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

Earnings vs Industry: PETS had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Online Retail industry average (78.8%).


Return on Equity

High ROE: PETS's Return on Equity (17.8%) is considered low.


Financial Health

How is PetMed Express's financial position?


Financial Position Analysis

Short Term Liabilities: PETS's short term assets ($133.4M) exceed its short term liabilities ($16.3M).

Long Term Liabilities: PETS's short term assets ($133.4M) exceed its long term liabilities ($1.6M).


Debt to Equity History and Analysis

Debt Level: PETS is debt free.

Reducing Debt: PETS has not had any debt for past 5 years.

Debt Coverage: PETS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PETS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

5.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PETS's dividend (5%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: PETS's dividend (5%) is in the top 25% of dividend payers in the US market (3.55%)


Stability and Growth of Payments

Stable Dividend: PETS's dividends per share have been stable in the past 10 years.

Growing Dividend: PETS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.6%), PETS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PETS's dividends in 3 years are not forecast to be well covered by earnings (107.5% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Matt Hulett (50 yo)

0.42

Tenure

Mr. Matthew N. Hulett, also known as Matt, serves as Chief Executive Officer, President & Director at PetMed Express, Inc. since August 30, 2021. He served as Co-President of Rosetta Stone, Inc. since Janu...


Leadership Team

Experienced Management: PETS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: PETS's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

PetMed Express, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: PetMed Express, Inc.
  • Ticker: PETS
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Implied Market Cap: US$485.200m
  • Shares outstanding: 20.21m
  • Website: https://www.1800petmeds.com

Number of Employees


Location

  • PetMed Express, Inc.
  • 420 South Congress Avenue
  • Delray Beach
  • Florida
  • 33445
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:43
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.