NasdaqGS:PETS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet established 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

PETS

0.7%

US Online Retail

0.4%

US Market


1 Year Return

19.0%

PETS

75.1%

US Online Retail

17.8%

US Market

Return vs Industry: PETS underperformed the US Online Retail industry which returned 75.1% over the past year.

Return vs Market: PETS exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

PETSIndustryMarket
7 Day1.3%0.7%0.4%
30 Day-0.9%8.1%6.1%
90 Day-0.8%13.0%8.9%
1 Year23.8%19.0%75.2%75.1%20.5%17.8%
3 Year-3.7%-14.2%117.9%117.7%42.3%32.9%
5 Year116.5%82.0%278.4%277.7%84.2%63.4%

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?

4.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PETS ($30.66) is trading below our estimate of fair value ($32.21)

Significantly Below Fair Value: PETS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PETS is good value based on its PE Ratio (21.7x) compared to the US Online Retail industry average (30.5x).

PE vs Market: PETS is poor value based on its PE Ratio (21.7x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: PETS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: PETS's PB Ratio (4.6x) is in line with the US Online Retail industry average.


Next Steps

Future Growth

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

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETS's forecast earnings growth (16.7% per year) is above the savings rate (2.2%).

Earnings vs Market: PETS's earnings (16.7% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: PETS's revenue (2.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: PETS's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PETS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PetMed Express performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PETS has high quality earnings.

Growing Profit Margin: PETS's current net profit margins (9.4%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: PETS's earnings have grown by 9.9% 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 (-7.2%) over the past year, making it difficult to compare to the Online Retail industry average (19.2%).


Return on Equity

High ROE: PETS's Return on Equity (21.3%) is considered high.


Next Steps

Financial Health

How is PetMed Express's financial position?


Financial Position Analysis

Short Term Liabilities: PETS's short term assets ($135.9M) exceed its short term liabilities ($29.2M).

Long Term Liabilities: PETS's short term assets ($135.9M) exceed its long term liabilities ($715.0K).


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?

3.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PETS's dividend (3.65%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: PETS's dividend (3.65%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 (77%), PETS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PETS's dividends in 3 years are forecast to be covered by earnings (82.8% payout ratio).


Next Steps

Management

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

17.5yrs

Average board tenure


CEO

Menderes Akdag (59 yo)

19.58yrs

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 ($USD1.30M) is below average for companies of similar size in the US market ($USD2.94M).

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 & Director19.58yrsUS$1.30m1.98%
$ 12.2m
Gian Fulgoni
Independent Director17.92yrsUS$159.85k0.33%
$ 2.0m
Ronald Korn
Independent Director17.92yrsUS$159.85k0.45%
$ 2.8m
Robert Schweitzer
Independent Chairman14.25yrsUS$167.35k0.48%
$ 2.9m
Frank Formica
Independent Director17.17yrsUS$159.85k0.30%
$ 1.8m
Leslie C. Campbell
Independent Director2.25yrsUS$159.85k0.11%
$ 689.8k

17.5yrs

Average Tenure

73yo

Average Age

Experienced Board: PETS's board of directors are seasoned and experienced ( 17.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PETS insiders have only sold shares 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$615.931m
  • Shares outstanding: 20.09m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:45
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.