PET VALU HOLDINGS LTD (PET.CA) Stock Fundamental Analysis
TSX:PET - Toronto Stock Exchange - CA71584R1055 - Common Stock - Currency: CAD
PET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 17 industry peers in the Specialty Retail industry. PET scores excellent on profitability, but 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.
PET had positive earnings in each of the past 5 years.
In the past 5 years PET always reported a positive cash flow from operatings.
1.2 Ratios
PET's Return On Assets of 9.13% is amongst the best of the industry. PET outperforms 88.24% of its industry peers.
With an excellent Return On Equity value of 88.49%, PET belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
PET's Return On Invested Capital of 13.97% is amongst the best of 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 8.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 88.49% | ||
| ROIC | 13.97% |
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 better Profit Margin (8.22%) than 76.47% of its industry peers.
PET's Profit Margin has improved in the last couple of years.
PET has a Operating Margin of 14.29%. This is in the better half of the industry: PET outperforms 76.47% of its industry peers.
In the last couple of years the Operating Margin of PET has declined.
The Gross Margin of PET (33.11%) is worse than 64.71% of its industry peers.
In the last couple of years the Gross Margin of PET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.29% | ||
| PM (TTM) | 8.22% | ||
| GM | 33.11% |
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
PET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
PET has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PET has been increased compared to 5 years ago.
The debt/assets ratio for PET has been reduced compared to a year ago.
2.2 Solvency
PET has an Altman-Z score of 3.11. This indicates that PET is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.11, PET is doing good in the industry, outperforming 64.71% of the companies in the same industry.
PET has a debt to FCF ratio of 6.04. This is a slightly negative value and a sign of low solvency as PET would need 6.04 years to pay back of all of its debts.
The Debt to FCF ratio of PET (6.04) is comparable to the rest of the industry.
PET has a Debt/Equity ratio of 6.73. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.73, PET is doing worse than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.67
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.37 indicates that PET should not have too much problems paying its short term obligations.
With a Current ratio value of 1.37, PET perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
PET has a Quick Ratio of 1.37. 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 0.65, PET is in line with its industry, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for PET have decreased by -2.44% in the last year.
The Earnings Per Share has been growing by 44.70% on average over the past years. This is a very strong growth
Looking at the last year, PET shows a small growth in Revenue. The Revenue has grown by 4.61% in the last year.
The Revenue has been growing by 13.85% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.44%
EPS 3Y-3.16%
EPS 5Y44.7%
EPS Q2Q%2.86%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y12.24%
Revenue growth 5Y13.85%
Sales Q2Q%13.92%
3.2 Future
The Earnings Per Share is expected to grow by 8.03% on average over the next years. This is quite good.
PET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.37% yearly.
EPS Next Y2.67%
EPS Next 2Y7.2%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue Next Year8.24%
Revenue Next 2Y6.91%
Revenue Next 3Y7.01%
Revenue Next 5Y10.37%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.42, PET is valued on the expensive side.
PET's Price/Earnings ratio is a bit cheaper when compared to the industry. PET is cheaper than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.93, PET is valued at the same level.
The Price/Forward Earnings ratio is 20.51, which indicates a rather expensive current valuation of PET.
Based on the Price/Forward Earnings ratio, PET is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
PET's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PET is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as PET.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.92 | ||
| EV/EBITDA | 14.56 |
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)8.76
PEG (5Y)0.52
EPS Next 2Y7.2%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
PET has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.05, PET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, PET's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
34.33% of the earnings are spent on dividend by PET. This is a low number and sustainable payout ratio.
DP34.33%
EPS Next 2Y7.2%
EPS Next 3Y8.03%
TSX:PET (8/14/2025, 7:00:00 PM)
37.48
+0.28 (+0.75%)
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 Cap2.56B
Analysts80
Price Target35.65 (-4.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP34.33%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.5%
Min EPS beat(2)5.61%
Max EPS beat(2)11.39%
EPS beat(4)4
Avg EPS beat(4)11.16%
Min EPS beat(4)5.61%
Max EPS beat(4)17.7%
EPS beat(8)8
Avg EPS beat(8)8.42%
EPS beat(12)11
Avg EPS beat(12)7.91%
EPS beat(16)15
Avg EPS beat(16)16.98%
Revenue beat(2)1
Avg Revenue beat(2)3.44%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)6.99%
Revenue beat(4)2
Avg Revenue beat(4)1.81%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)6.99%
Revenue beat(8)2
Avg Revenue beat(8)0.29%
Revenue beat(12)6
Avg Revenue beat(12)1.49%
Revenue beat(16)10
Avg Revenue beat(16)3.23%
PT rev (1m)1.23%
PT rev (3m)7.69%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-7.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 20.51 | ||
| P/S | 2.29 | ||
| P/FCF | 19.92 | ||
| P/OCF | 13.33 | ||
| P/B | 24.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.56 |
EPS(TTM)1.6
EY4.27%
EPS(NY)1.83
Fwd EY4.88%
FCF(TTM)1.88
FCFY5.02%
OCF(TTM)2.81
OCFY7.5%
SpS16.35
BVpS1.52
TBVpS-0.65
PEG (NY)8.76
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 88.49% | ||
| ROCE | 19.47% | ||
| ROIC | 13.97% | ||
| ROICexc | 14.63% | ||
| ROICexgc | 18.05% | ||
| OM | 14.29% | ||
| PM (TTM) | 8.22% | ||
| GM | 33.11% | ||
| FCFM | 11.51% |
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 6.04 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 94.55% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 84.7% | ||
| Profit Quality | 140.08% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.11 |
F-ScoreN/A
WACC8.35%
ROIC/WACC1.67
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)-2.44%
EPS 3Y-3.16%
EPS 5Y44.7%
EPS Q2Q%2.86%
EPS Next Y2.67%
EPS Next 2Y7.2%
EPS Next 3Y8.03%
EPS Next 5YN/A
Revenue 1Y (TTM)4.61%
Revenue growth 3Y12.24%
Revenue growth 5Y13.85%
Sales Q2Q%13.92%
Revenue Next Year8.24%
Revenue Next 2Y6.91%
Revenue Next 3Y7.01%
Revenue Next 5Y10.37%
EBIT growth 1Y0.15%
EBIT growth 3Y6.27%
EBIT growth 5Y9.15%
EBIT Next Year50.9%
EBIT Next 3Y19.86%
EBIT Next 5YN/A
FCF growth 1Y85.59%
FCF growth 3Y7.11%
FCF growth 5Y4.84%
OCF growth 1Y60.83%
OCF growth 3Y13.14%
OCF growth 5Y10.94%