PATTERSON COS INC (PDCO)
US7033951036 - Common Stock
We assign a fundamental rating of 5 out of 10 to PDCO. PDCO was compared to 117 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 on the other hand it scores bad on growth. Finally PDCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PDCO had positive earnings in the past year.
In the past year PDCO has reported a negative cash flow from operations.
Of the past 5 years PDCO 4 years were profitable.
PDCO had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
PDCO has a Return On Assets of 6.59%. This is amongst the best in the industry. PDCO outperforms 88.79% of its industry peers.
Looking at the Return On Equity, with a value of 19.96%, PDCO belongs to the top of the industry, outperforming 88.79% of the companies in the same industry.
PDCO has a better Return On Invested Capital (10.35%) than 90.52% of its industry peers.
PDCO had an Average Return On Invested Capital over the past 3 years of 10.43%. This is in line with the industry average of 8.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.96% | ||
| ROIC | 10.35% |
ROA(3y)6.76%
ROA(5y)0.24%
ROE(3y)18.09%
ROE(5y)-2.12%
ROIC(3y)10.43%
ROIC(5y)8.09%
1.3 Margins
Looking at the Profit Margin, with a value of 2.95%, PDCO is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
PDCO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.11%, PDCO is in line with its industry, outperforming 59.48% of the companies in the same industry.
PDCO's Operating Margin has been stable in the last couple of years.
The Gross Margin of PDCO (21.30%) is worse than 62.07% of its industry peers.
PDCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.11% | ||
| PM (TTM) | 2.95% | ||
| GM | 21.3% |
OM growth 3Y31.49%
OM growth 5Y1.17%
PM growth 3YN/A
PM growth 5Y-2.7%
GM growth 3Y-0.92%
GM growth 5Y-0.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PDCO is still creating some value.
Compared to 1 year ago, PDCO has less shares outstanding
The number of shares outstanding for PDCO has been increased compared to 5 years ago.
PDCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.85 indicates that PDCO is not in any danger for bankruptcy at the moment.
PDCO has a better Altman-Z score (3.85) than 81.90% of its industry peers.
PDCO has a Debt/Equity ratio of 0.80. This is a neutral value indicating PDCO is somewhat dependend on debt financing.
PDCO has a Debt to Equity ratio of 0.80. This is comparable to the rest of the industry: PDCO outperforms 42.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.85 |
ROIC/WACC1.28
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.43 indicates that PDCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, PDCO is in line with its industry, outperforming 54.31% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that PDCO may have some problems paying its short term obligations.
The Quick ratio of PDCO (0.72) is worse than 76.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
PDCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.19%.
Measured over the past 5 years, PDCO shows a small growth in Earnings Per Share. The EPS has been growing by 7.48% on average per year.
The Revenue has been growing slightly by 2.78% in the past year.
Measured over the past years, PDCO shows a small growth in Revenue. The Revenue has been growing by 3.44% on average per year.
EPS 1Y (TTM)2.19%
EPS 3Y15.6%
EPS 5Y7.48%
EPS growth Q2Q-4.84%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y5.64%
Revenue growth 5Y3.44%
Revenue growth Q2Q0.95%
3.2 Future
The Earnings Per Share is expected to grow by 4.27% on average over the next years.
Based on estimates for the next years, PDCO will show a small growth in Revenue. The Revenue will grow by 2.93% on average per year.
EPS Next Y-1.81%
EPS Next 2Y2.14%
EPS Next 3Y4.27%
EPS Next 5YN/A
Revenue Next Year2.35%
Revenue Next 2Y2.68%
Revenue Next 3Y2.93%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
PDCO is valuated reasonably with a Price/Earnings ratio of 11.15.
93.10% of the companies in the same industry are more expensive than PDCO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.20, PDCO is valued rather cheaply.
PDCO is valuated reasonably with a Price/Forward Earnings ratio of 10.33.
Based on the Price/Forward Earnings ratio, PDCO is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
PDCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDCO is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y2.14%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, PDCO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.77, PDCO pays a better dividend. On top of this PDCO pays more dividend than 97.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PDCO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
The dividend of PDCO has a limited annual growth rate of 0.22%.
PDCO has been paying a dividend for at least 10 years, so it has a reliable track record.
PDCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.22%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
51.75% of the earnings are spent on dividend by PDCO. This is a bit on the high side, but may be sustainable.
The dividend of PDCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.75%
EPS Next 2Y2.14%
EPS Next 3Y4.27%
PATTERSON COS INC
NASDAQ:PDCO (4/23/2024, 3:04:20 PM)
After market: 25.97 0 (0%)25.97
+0.06 (+0.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 10.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 19.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.11% | ||
| PM (TTM) | 2.95% | ||
| GM | 21.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.19%
EPS 3Y15.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.78%
Revenue growth 3Y5.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y