PET VALU HOLDINGS LTD (PET.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PET - CA71584R1055 - Common Stock
28.77 CAD
-0.28 (-0.96%)
PET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Specialty Retail industry. While PET is still in line with the averages on profitability rating, there are concerns on its financial health. PET has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year PET was profitable.
- In the past year PET had a positive cash flow from operations.
- PET had positive earnings in each of the past 5 years.
- Each year in the past 5 years PET had a positive operating cash flow.
1.2 Ratios
- PET has a Return On Assets of 9.63%. This is in the better half of the industry: PET outperforms 78.95% of its industry peers.
- The Return On Equity of PET (123.01%) is better than 100.00% of its industry peers.
- The Return On Invested Capital of PET (14.34%) is better than 78.95% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PET is significantly above the industry average of 11.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.63% | ||
| ROE | 123.01% | ||
| ROIC | 14.34% |
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 8.51%. This is in the better half of the industry: PET outperforms 63.16% of its industry peers.
- PET's Profit Margin has improved in the last couple of years.
- The Operating Margin of PET (14.32%) is better than 78.95% of its industry peers.
- In the last couple of years the Operating Margin of PET has declined.
- PET's Gross Margin of 33.34% is on the low side compared to the rest of the industry. PET is outperformed by 63.16% of its industry peers.
- In the last couple of years the Gross Margin of PET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.32% | ||
| PM (TTM) | 8.51% | ||
| GM | 33.34% |
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.
- Compared to 5 years ago, PET has more shares outstanding
- The debt/assets ratio for PET has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.67 indicates that PET is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.67, PET perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
- PET has a debt to FCF ratio of 5.73. This is a neutral value as PET would need 5.73 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 5.73, PET perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
- PET has a Debt/Equity ratio of 9.12. This is a high value indicating a heavy dependency on external financing.
- PET's Debt to Equity ratio of 9.12 is on the low side compared to the rest of the industry. PET is outperformed by 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.12 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.64
WACC8.72%
2.3 Liquidity
- PET has a Current Ratio of 1.28. This is a normal value and indicates that PET is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.28, PET perfoms like the industry average, outperforming 47.37% of the companies in the same 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.
- The Quick ratio of PET (0.53) is worse than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- The earnings per share for PET have decreased by -5.36% in the last year.
- Measured over the past years, PET shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.70% on average per year.
- Looking at the last year, PET shows a small growth in Revenue. The Revenue has grown by 5.09% 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)-5.36%
EPS 3Y-3.16%
EPS 5Y44.7%
EPS Q2Q%-2.44%
Revenue 1Y (TTM)5.09%
Revenue growth 3Y12.24%
Revenue growth 5Y13.85%
Sales Q2Q%4.87%
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 8.72% yearly.
- The Revenue is expected to grow by 10.37% on average over the next years. This is quite good.
EPS Next Y4.56%
EPS Next 2Y6.81%
EPS Next 3Y8.72%
EPS Next 5YN/A
Revenue Next Year7.96%
Revenue Next 2Y5.8%
Revenue Next 3Y5.81%
Revenue Next 5Y10.37%
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 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
- With a Price/Earnings ratio of 18.09, PET is valued on the expensive side.
- Based on the Price/Earnings ratio, PET is valued a bit cheaper than 73.68% of the companies in the same industry.
- PET's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 15.86 indicates a correct valuation of PET.
- Based on the Price/Forward Earnings ratio, PET is valued a bit cheaper than the industry average as 73.68% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 15.86 |
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.
- PET's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.13 | ||
| EV/EBITDA | 11.94 |
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.
- PET has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.97
PEG (5Y)0.4
EPS Next 2Y6.81%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
- PET has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.62, PET pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PET has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
- 33.62% of the earnings are spent on dividend by PET. This is a low number and sustainable payout ratio.
DP33.62%
EPS Next 2Y6.81%
EPS Next 3Y8.72%
PET VALU HOLDINGS LTD / PET.CA FAQ
Can you provide the ChartMill fundamental rating for PET VALU HOLDINGS LTD?
ChartMill assigns a fundamental rating of 5 / 10 to PET.CA.
What is the valuation status of PET VALU HOLDINGS LTD (PET.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to PET VALU HOLDINGS LTD (PET.CA). This can be considered as Fairly Valued.
What is the profitability of PET stock?
PET VALU HOLDINGS LTD (PET.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for PET stock?
The Price/Earnings (PE) ratio for PET VALU HOLDINGS LTD (PET.CA) is 18.09 and the Price/Book (PB) ratio is 25.08.
How financially healthy is PET VALU HOLDINGS LTD?
The financial health rating of PET VALU HOLDINGS LTD (PET.CA) is 3 / 10.