PATTERSON COS INC (PDCO) Stock Fundamental Analysis
NASDAQ:PDCO - Nasdaq - US7033951036 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PDCO. PDCO was compared to 103 industry peers in the Health Care Providers & Services industry. PDCO has an average financial health and profitability rating. PDCO has a valuation in line with the averages, but it does not seem to be growing. PDCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PDCO was profitable.
In the past year PDCO has reported a negative cash flow from operations.
PDCO had positive earnings in 4 of the past 5 years.
PDCO had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.90%, PDCO is doing good in the industry, outperforming 77.14% of the companies in the same industry.
The Return On Equity of PDCO (14.02%) is better than 80.95% of its industry peers.
PDCO's Return On Invested Capital of 8.36% is fine compared to the rest of the industry. PDCO outperforms 75.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDCO is in line with the industry average of 9.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 14.02% | ||
| ROIC | 8.36% |
ROA(3y)7.01%
ROA(5y)1.01%
ROE(3y)18.89%
ROE(5y)0.46%
ROIC(3y)11.02%
ROIC(5y)9.45%
1.3 Margins
PDCO has a Profit Margin of 2.13%. This is in the better half of the industry: PDCO outperforms 62.86% of its industry peers.
In the last couple of years the Profit Margin of PDCO has grown nicely.
PDCO has a Operating Margin of 3.08%. This is comparable to the rest of the industry: PDCO outperforms 52.38% of its industry peers.
PDCO's Operating Margin has improved in the last couple of years.
PDCO has a Gross Margin (20.47%) which is in line with its industry peers.
PDCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.08% | ||
| PM (TTM) | 2.13% | ||
| GM | 20.47% |
OM growth 3Y2.63%
OM growth 5Y9.29%
PM growth 3Y2.37%
PM growth 5Y13.55%
GM growth 3Y1.08%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PDCO is creating some value.
PDCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PDCO has been reduced compared to 5 years ago.
The debt/assets ratio for PDCO is higher compared to a year ago.
2.2 Solvency
PDCO has an Altman-Z score of 4.06. This indicates that PDCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.06, PDCO is in the better half of the industry, outperforming 78.10% of the companies in the same industry.
PDCO has a Debt/Equity ratio of 0.63. This is a neutral value indicating PDCO is somewhat dependend on debt financing.
PDCO has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: PDCO outperforms 55.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.06 |
ROIC/WACC1.05
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.41 indicates that PDCO should not have too much problems paying its short term obligations.
PDCO's Current ratio of 1.41 is in line compared to the rest of the industry. PDCO outperforms 46.67% of its industry peers.
PDCO has a Quick Ratio of 1.41. This is a bad value and indicates that PDCO is not financially healthy enough and could expect problems in meeting its short term obligations.
PDCO has a Quick ratio of 0.73. This is amonst the worse of the industry: PDCO underperforms 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
PDCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.88%.
Measured over the past years, PDCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.53% on average per year.
The Revenue has decreased by -0.85% in the past year.
Measured over the past years, PDCO shows a small growth in Revenue. The Revenue has been growing by 3.34% on average per year.
EPS 1Y (TTM)-15.88%
EPS 3Y6.36%
EPS 5Y10.53%
EPS Q2Q%-27.12%
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y3.57%
Revenue growth 5Y3.34%
Sales Q2Q%-2.7%
3.2 Future
Based on estimates for the next years, PDCO will show a small growth in Earnings Per Share. The EPS will grow by 7.64% on average per year.
The Revenue is expected to grow by 2.87% on average over the next years.
EPS Next Y-5.78%
EPS Next 2Y1.59%
EPS Next 3Y3.69%
EPS Next 5Y7.64%
Revenue Next Year0.42%
Revenue Next 2Y1.61%
Revenue Next 3Y2.27%
Revenue Next 5Y2.87%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.98, which indicates a correct valuation of PDCO.
Compared to the rest of the industry, the Price/Earnings ratio of PDCO indicates a somewhat cheap valuation: PDCO is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.99. PDCO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.14 indicates a correct valuation of PDCO.
Based on the Price/Forward Earnings ratio, PDCO is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
PDCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PDCO indicates a somewhat cheap valuation: PDCO is cheaper than 70.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y1.59%
EPS Next 3Y3.69%
5. Dividend
5.1 Amount
PDCO has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
PDCO's Dividend Yield is rather good when compared to the industry average which is at 2.97. PDCO pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PDCO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of PDCO has a limited annual growth rate of 0.19%.
PDCO has been paying a dividend for at least 10 years, so it has a reliable track record.
PDCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.19%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
66.64% of the earnings are spent on dividend by PDCO. This is not a sustainable payout ratio.
PDCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.64%
EPS Next 2Y1.59%
EPS Next 3Y3.69%
31.33
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.4%
Inst Owner Change-3.17%
Ins Owners0.98%
Ins Owner Change-69.23%
Market Cap2.77B
Analysts69.47
Price Target30.88 (-1.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend1.06
Dividend Growth(5Y)0.19%
DP66.64%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.99%
Min EPS beat(2)-32.44%
Max EPS beat(2)-5.54%
EPS beat(4)0
Avg EPS beat(4)-16.72%
Min EPS beat(4)-32.44%
Max EPS beat(4)-2.48%
EPS beat(8)1
Avg EPS beat(8)-8.75%
EPS beat(12)4
Avg EPS beat(12)-4.34%
EPS beat(16)7
Avg EPS beat(16)-2.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.21%
Min Revenue beat(2)-5.73%
Max Revenue beat(2)-0.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.02%
Min Revenue beat(4)-5.73%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-2.44%
Revenue beat(12)2
Avg Revenue beat(12)-2.47%
Revenue beat(16)5
Avg Revenue beat(16)-1.35%
PT rev (1m)1.46%
PT rev (3m)3.62%
EPS NQ rev (1m)-2.43%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-5.78%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 13.14 | ||
| P/S | 0.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.8 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)1.96
EY6.26%
EPS(NY)2.38
Fwd EY7.61%
FCF(TTM)-9.81
FCFYN/A
OCF(TTM)-9.09
OCFYN/A
SpS73.6
BVpS11.19
TBVpS7.45
PEG (NY)N/A
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 14.02% | ||
| ROCE | 13.11% | ||
| ROIC | 8.36% | ||
| ROICexc | 9.03% | ||
| ROICexgc | 11.21% | ||
| OM | 3.08% | ||
| PM (TTM) | 2.13% | ||
| GM | 20.47% | ||
| FCFM | N/A |
ROA(3y)7.01%
ROA(5y)1.01%
ROE(3y)18.89%
ROE(5y)0.46%
ROIC(3y)11.02%
ROIC(5y)9.45%
ROICexc(3y)11.95%
ROICexc(5y)10.22%
ROICexgc(3y)15.51%
ROICexgc(5y)13.52%
ROCE(3y)15.2%
ROCE(5y)12.91%
ROICexcg growth 3Y2.47%
ROICexcg growth 5Y10.06%
ROICexc growth 3Y4.89%
ROICexc growth 5Y20.88%
OM growth 3Y2.63%
OM growth 5Y9.29%
PM growth 3Y2.37%
PM growth 5Y13.55%
GM growth 3Y1.08%
GM growth 5Y-0.33%
F-Score4
Asset Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 68.52% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 4.06 |
F-Score4
WACC7.97%
ROIC/WACC1.05
Cap/Depr(3y)66.71%
Cap/Depr(5y)56.73%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.88%
EPS 3Y6.36%
EPS 5Y10.53%
EPS Q2Q%-27.12%
EPS Next Y-5.78%
EPS Next 2Y1.59%
EPS Next 3Y3.69%
EPS Next 5Y7.64%
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y3.57%
Revenue growth 5Y3.34%
Sales Q2Q%-2.7%
Revenue Next Year0.42%
Revenue Next 2Y1.61%
Revenue Next 3Y2.27%
Revenue Next 5Y2.87%
EBIT growth 1Y-25.9%
EBIT growth 3Y6.29%
EBIT growth 5Y12.93%
EBIT Next Year7.53%
EBIT Next 3Y6.15%
EBIT Next 5Y5.08%
FCF growth 1Y6.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.06%
OCF growth 3YN/A
OCF growth 5YN/A