PET VALU HOLDINGS LTD (PET.CA) Stock Fundamental Analysis
Canada - TSX:PET - CA71584R1055 - Common Stock
37.55 CAD
-0.23 (-0.61%)
We assign a fundamental rating of 5 out of 10 to PET. PET was compared to 17 industry peers in the Specialty Retail industry. While PET has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, PET is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PET had positive earnings in the past year.
In the past year PET had a positive cash flow from operations.
In the past 5 years PET has always been profitable.
Each year in the past 5 years PET had a positive operating cash flow.
1.2 Ratios
PET has a Return On Assets of 9.65%. This is amongst the best in the industry. PET outperforms 94.12% of its industry peers.
The Return On Equity of PET (166.31%) is better than 100.00% of its industry peers.
PET has a Return On Invested Capital of 14.44%. This is amongst the best in the industry. PET outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PET is significantly above the industry average of 9.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.65% | ||
| ROE | 166.31% | ||
| ROIC | 14.44% |
ROA(3y)10.79%
ROA(5y)10.41%
ROE(3y)9006.4%
ROE(5y)N/A
ROIC(3y)16.85%
ROIC(5y)17.86%
1.3 Margins
PET has a Profit Margin of 8.46%. This is in the better half of the industry: PET outperforms 76.47% of its industry peers.
PET's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.36%, PET is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Operating Margin of PET has declined.
PET's Gross Margin of 33.18% is on the low side compared to the rest of the industry. PET is outperformed by 64.71% of its industry peers.
PET's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.36% | ||
| PM (TTM) | 8.46% | ||
| GM | 33.18% |
OM growth 3Y-5.31%
OM growth 5Y-4.13%
PM growth 3Y-13.45%
PM growth 5Y27.95%
GM growth 3Y-3.52%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PET is creating value.
PET has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PET has more shares outstanding
PET has a better debt/assets ratio than last year.
2.2 Solvency
PET has an Altman-Z score of 3.02. This indicates that PET is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PET (3.02) is comparable to the rest of the industry.
PET has a debt to FCF ratio of 5.34. This is a neutral value as PET would need 5.34 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.34, PET perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
A Debt/Equity ratio of 12.69 is on the high side and indicates that PET has dependencies on debt financing.
PET has a Debt to Equity ratio of 12.69. This is amonst the worse of the industry: PET underperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.69 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.65
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.28 indicates that PET should not have too much problems paying its short term obligations.
PET has a Current ratio (1.28) which is comparable to the rest of the industry.
PET has a Quick Ratio of 1.28. This is a bad value and indicates that PET is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.51, PET is doing worse than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for PET have decreased by -3.61% in the last year.
PET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.70% yearly.
The Revenue has been growing slightly by 5.18% in the past year.
PET shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.85% yearly.
EPS 1Y (TTM)-3.61%
EPS 3Y-3.16%
EPS 5Y44.7%
EPS Q2Q%0%
Revenue 1Y (TTM)5.18%
Revenue growth 3Y12.24%
Revenue growth 5Y13.85%
Sales Q2Q%5.81%
3.2 Future
PET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
The Revenue is expected to grow by 10.37% on average over the next years. This is quite good.
EPS Next Y5.88%
EPS Next 2Y9.2%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue Next Year8.87%
Revenue Next 2Y7.25%
Revenue Next 3Y7.32%
Revenue Next 5Y10.37%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.47, the valuation of PET can be described as rather expensive.
PET's Price/Earnings ratio is a bit cheaper when compared to the industry. PET is cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of PET to the average of the S&P500 Index (27.38), we can say PET is valued inline with the index average.
PET is valuated rather expensively with a Price/Forward Earnings ratio of 19.80.
PET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PET is cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PET to the average of the S&P500 Index (22.86), we can say PET is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
PET's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PET is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.03 | ||
| EV/EBITDA | 14.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PET does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PET may justify a higher PE ratio.
PEG (NY)3.99
PEG (5Y)0.52
EPS Next 2Y9.2%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
PET has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
PET's Dividend Yield is a higher than the industry average which is at 7.02.
Compared to an average S&P500 Dividend Yield of 2.38, PET's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
PET has been paying a dividend for over 5 years, so it has already some track record.
PET has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PET pays out 33.86% of its income as dividend. This is a sustainable payout ratio.
DP33.86%
EPS Next 2Y9.2%
EPS Next 3Y10.08%
TSX:PET (9/19/2025, 7:00:00 PM)
37.55
-0.23 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners37.58%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap2.58B
Analysts80
Price Target42.28 (12.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP33.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.39%
Min EPS beat(2)5.61%
Max EPS beat(2)15.17%
EPS beat(4)4
Avg EPS beat(4)12.47%
Min EPS beat(4)5.61%
Max EPS beat(4)17.7%
EPS beat(8)8
Avg EPS beat(8)9.53%
EPS beat(12)11
Avg EPS beat(12)7.49%
EPS beat(16)15
Avg EPS beat(16)13.57%
Revenue beat(2)1
Avg Revenue beat(2)2.88%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)6.99%
Revenue beat(4)2
Avg Revenue beat(4)1.92%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)6.99%
Revenue beat(8)2
Avg Revenue beat(8)0.3%
Revenue beat(12)5
Avg Revenue beat(12)0.86%
Revenue beat(16)9
Avg Revenue beat(16)2.51%
PT rev (1m)18.61%
PT rev (3m)20.55%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-7.54%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 19.8 | ||
| P/S | 2.28 | ||
| P/FCF | 17.03 | ||
| P/OCF | 12.14 | ||
| P/B | 44.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.65 |
EPS(TTM)1.6
EY4.26%
EPS(NY)1.9
Fwd EY5.05%
FCF(TTM)2.2
FCFY5.87%
OCF(TTM)3.09
OCFY8.24%
SpS16.45
BVpS0.84
TBVpS-1.33
PEG (NY)3.99
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.65% | ||
| ROE | 166.31% | ||
| ROCE | 20.12% | ||
| ROIC | 14.44% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 18.02% | ||
| OM | 14.36% | ||
| PM (TTM) | 8.46% | ||
| GM | 33.18% | ||
| FCFM | 13.4% |
ROA(3y)10.79%
ROA(5y)10.41%
ROE(3y)9006.4%
ROE(5y)N/A
ROIC(3y)16.85%
ROIC(5y)17.86%
ROICexc(3y)18.17%
ROICexc(5y)19.94%
ROICexgc(3y)24.29%
ROICexgc(5y)28.59%
ROCE(3y)23.47%
ROCE(5y)24.88%
ROICexcg growth 3Y-19.06%
ROICexcg growth 5Y-10.3%
ROICexc growth 3Y-14.11%
ROICexc growth 5Y-6.19%
OM growth 3Y-5.31%
OM growth 5Y-4.13%
PM growth 3Y-13.45%
PM growth 5Y27.95%
GM growth 3Y-3.52%
GM growth 5Y-1.57%
F-ScoreN/A
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.69 | ||
| Debt/FCF | 5.34 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 89.51% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 3.83 | ||
| Cash Conversion | 92.19% | ||
| Profit Quality | 158.42% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 3.02 |
F-ScoreN/A
WACC8.78%
ROIC/WACC1.65
Cap/Depr(3y)113.42%
Cap/Depr(5y)97.58%
Cap/Sales(3y)5.53%
Cap/Sales(5y)4.68%
Profit Quality(3y)104.43%
Profit Quality(5y)210.05%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.61%
EPS 3Y-3.16%
EPS 5Y44.7%
EPS Q2Q%0%
EPS Next Y5.88%
EPS Next 2Y9.2%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue 1Y (TTM)5.18%
Revenue growth 3Y12.24%
Revenue growth 5Y13.85%
Sales Q2Q%5.81%
Revenue Next Year8.87%
Revenue Next 2Y7.25%
Revenue Next 3Y7.32%
Revenue Next 5Y10.37%
EBIT growth 1Y6.3%
EBIT growth 3Y6.27%
EBIT growth 5Y9.15%
EBIT Next Year50.9%
EBIT Next 3Y19.86%
EBIT Next 5YN/A
FCF growth 1Y136.98%
FCF growth 3Y7.11%
FCF growth 5Y4.84%
OCF growth 1Y68.11%
OCF growth 3Y13.14%
OCF growth 5Y10.94%