NasdaqGS:PETS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PETS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.2%

PETS

9.8%

US Online Retail

2.3%

US Market


1 Year Return

158.0%

PETS

52.7%

US Online Retail

6.7%

US Market

Return vs Industry: PETS exceeded the US Online Retail industry which returned 52.7% over the past year.

Return vs Market: PETS exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

PETSIndustryMarket
7 Day9.2%9.8%2.3%
30 Day5.0%19.3%-0.7%
90 Day32.9%46.7%17.1%
1 Year170.2%158.0%52.8%52.7%9.0%6.7%
3 Year9.5%-2.0%119.3%119.1%36.7%27.8%
5 Year176.5%129.5%301.5%285.2%65.2%46.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PETS ($38.93) is trading above our estimate of fair value ($21.11)

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


Price To Earnings Ratio

PE vs Industry: PETS is good value based on its PE Ratio (30.2x) compared to the Online Retail industry average (33.8x).

PE vs Market: PETS is poor value based on its PE Ratio (30.2x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: PETS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: PETS is overvalued based on its PB Ratio (6x) compared to the US Online Retail industry average (3.7x).


Next Steps

Future Growth

How is PetMed Express forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETS's forecast earnings growth (17.8% per year) is above the savings rate (2.2%).

Earnings vs Market: PETS's earnings (17.8% per year) are forecast to grow slower than the US market (22.8% 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 (9.3% 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 high in 3 years time (24.4%)


Next Steps

Past Performance

How has PetMed Express performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PETS has high quality earnings.

Growing Profit Margin: PETS's current net profit margins (9.1%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: PETS's earnings have grown by 12.1% 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 (-31.4%) over the past year, making it difficult to compare to the Online Retail industry average (-15.9%).


Return on Equity

High ROE: PETS's Return on Equity (19.9%) is considered low.


Next Steps

Financial Health

How is PetMed Express's financial position?


Financial Position Analysis

Short Term Liabilities: PETS's short term assets ($129.0M) exceed its short term liabilities ($24.3M).

Long Term Liabilities: PETS's short term assets ($129.0M) exceed its long term liabilities ($970.0K).


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


Next Steps

Dividend

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

2.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PETS's dividend (2.88%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: PETS's dividend (2.88%) is low compared to the top 25% of dividend payers in the US market (4.58%).


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: At its current payout ratio (83.7%), PETS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

17.3yrs

Average board tenure


CEO

Menderes Akdag (59yo)

19.33yrs

Tenure

US$1,303,460

Compensation

Mr. Menderes Akdag has been the Chief Executive Officer of PetMed Express, Inc. since March 16, 2001 and has been its President since August 2005. Mr. Akdag has a breadth of experience in the areas of dire ...


CEO Compensation Analysis

Compensation vs Market: Menderes's total compensation ($USD1.30M) is below average for companies of similar size in the US market ($USD3.15M).

Compensation vs Earnings: Menderes's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Menderes Akdag
CEO, President & Director19.33yrsUS$1.30m1.95% $15.2m
Gian Fulgoni
Independent Director17.67yrsUS$159.85k0.29% $2.3m
Ronald Korn
Independent Director17.67yrsUS$159.85k0.42% $3.3m
Robert Schweitzer
Independent Chairman14yrsUS$167.35k0.48% $3.7m
Frank Formica
Independent Director16.92yrsUS$159.85k0.29% $2.2m
Leslie C. Campbell
Independent Director2yrsUS$159.85k0.075% $583.9k

17.3yrs

Average Tenure

73yo

Average Age

Experienced Board: PETS's board of directors are seasoned and experienced ( 17.3 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.


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 company bio, 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
  • Market Cap: US$777.965m
  • Shares outstanding: 19.98m
  • Website: https://www.1800petmeds.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PETSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1997
PQMDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1997

Biography

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 preventative, flea and tick preventative, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, strollers, and other pet supplies. It sells its products through its Internet website; telephone contact center; and direct mail/print through brochures and postcards. PetMed Express, Inc. was founded in 1996 and is headquartered in Delray Beach, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 00:00
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.