Petco Health and Wellness Company (NasdaqGS:WOOF) - Share price, News & Analysis

WOOF fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

WOOF Stock Overview

Petco Health and Wellness Company, Inc., a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners.

Rewards

Trading at 45% below our estimate of its fair value

Earnings are forecast to grow 12.65% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Petco Health and Wellness Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Petco Health and Wellness Company
Historical stock prices
Current Share Price	US$15.11
52 Week High	US$28.73
52 Week Low	US$14.38
Beta	0
1 Month Change	-29.56%
3 Month Change	-17.61%
1 Year Change	-38.83%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-48.61%

Recent News & Updates

May 22

Petco Health and Wellness Company: An Attractive Prospect For Pet Lovers

The management team at Petco Health and Wellness Company is doing a good job at growing the business right now. Current guidance looks great for the firm, but investors are worried about competition and the broader economy. So long as guidance is met or exceeded, the company offers some upside potential moving forward.

Apr 08

Petco Health and Wellness Company, Inc.'s (NASDAQ:WOOF) Intrinsic Value Is Potentially 30% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Petco Health and...

Shareholder Returns

	WOOF	US Specialty Retail	US Market
7D	-18.9%	-8.9%	-2.7%
1Y	-38.8%	-28.3%	-12.9%

Return vs Industry: WOOF underperformed the US Specialty Retail industry which returned -28.3% over the past year.

Return vs Market: WOOF underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is WOOF's price volatile compared to industry and market?
WOOF volatility
WOOF Average Weekly Movement	7.8%
Specialty Retail Industry Average Movement	8.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: WOOF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WOOF's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1965	28,495	Ron Coughlin	https://www.petco.com

Petco Health and Wellness Company, Inc., a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites.

Petco Health and Wellness Company Fundamentals Summary

How do Petco Health and Wellness Company's earnings and revenue compare to its market cap?
WOOF fundamental statistics
Market Cap	US$4.01b
Earnings (TTM)	US$164.42m
Revenue (TTM)	US$5.81b

24.4x

P/E Ratio

0.7x

P/S Ratio

Is WOOF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WOOF income statement (TTM)
Revenue	US$5.81b
Cost of Revenue	US$3.38b
Gross Profit	US$2.43b
Other Expenses	US$2.26b
Earnings	US$164.42m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

May 24, 2022

Earnings per share (EPS)	0.62
Gross Margin	41.79%
Net Profit Margin	2.83%
Debt/Equity Ratio	76.2%

How did WOOF perform over the long term?

See historical performance and comparison

Valuation

Is Petco Health and Wellness Company undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

45.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WOOF ($15.11) is trading below our estimate of fair value ($27.49)

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

Price To Earnings Ratio

PE vs Industry: WOOF is poor value based on its PE Ratio (24.4x) compared to the US Specialty Retail industry average (6.3x).

PE vs Market: WOOF is poor value based on its PE Ratio (24.4x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: WOOF is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: WOOF's PB Ratio (1.8x) is in line with the US Specialty Retail industry average.

Future Growth

How is Petco Health and Wellness Company forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WOOF's forecast earnings growth (12.7% per year) is above the savings rate (1.9%).

Earnings vs Market: WOOF's earnings (12.7% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: WOOF's revenue (6.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: WOOF's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: WOOF's Return on Equity is forecast to be low in 3 years time (10.6%).

Past Performance

How has Petco Health and Wellness Company performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.1%

Last years revenue growth

Earnings and Revenue History

Quality Earnings: WOOF has high quality earnings.

Growing Profit Margin: WOOF became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: WOOF has become profitable over the past 5 years.

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

Earnings vs Industry: WOOF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (82.6%).

Return on Equity

High ROE: WOOF's Return on Equity (7.1%) is considered low.

Financial Health

How is Petco Health and Wellness Company's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

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

Long Term Liabilities: WOOF's short term assets ($1.1B) do not cover its long term liabilities ($3.2B).

Debt to Equity History and Analysis

Debt Level: WOOF's net debt to equity ratio (66.8%) is considered high.

Reducing Debt: Insufficient data to determine if WOOF's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WOOF's debt is well covered by operating cash flow (20.8%).

Interest Coverage: WOOF's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

Dividend

What is Petco Health and Wellness Company current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate WOOF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WOOF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WOOF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WOOF's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WOOF has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

Ron Coughlin (55 yo)

3.92yrs

Tenure

US$4,025,740

Compensation

Mr. Ronald Coughlin, Jr., also known as Ron, has been the Chief Executive Officer and Director at Petco Health and Wellness Company, Inc. since June 2018 and its Chairman since January 19, 2021. Mr. Coughl...

CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD4.03M) is below average for companies of similar size in the US market ($USD6.86M).

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

Leadership Team

Experienced Management: WOOF's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: WOOF'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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/01/29
Annual Earnings	2022/01/29