PET VALU HOLDINGS LTD (PET.CA) Stock Fundamental Analysis
TSX:PET - Toronto Stock Exchange - CA71584R1055 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to PET. PET was compared to 16 industry peers in the Specialty Retail industry. PET has an excellent profitability rating, but there are some minor concerns on its financial health. PET has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PET had positive earnings in the past year.
PET had a positive operating cash flow in the past year.
PET had positive earnings in each of the past 5 years.
PET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PET's Return On Assets of 9.13% is amongst the best of the industry. PET outperforms 87.50% of its industry peers.
With an excellent Return On Equity value of 88.49%, PET belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
PET has a better Return On Invested Capital (13.97%) than 93.75% 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 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
With a decent Profit Margin value of 8.22%, PET is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PET has grown nicely.
PET has a better Operating Margin (14.29%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of PET has declined.
PET has a worse Gross Margin (33.11%) than 62.50% of its industry peers.
PET's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, PET has less shares outstanding
PET has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PET has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.92 indicates that PET is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of PET (2.92) is better than 62.50% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.04, PET is in line with its industry, outperforming 43.75% of the companies in the same industry.
PET has a Debt/Equity ratio of 6.73. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of PET (6.73) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.97
WACC7.09%
2.3 Liquidity
A Current Ratio of 1.37 indicates that PET should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, PET is in line with its industry, outperforming 56.25% 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.
PET's Quick ratio of 0.65 is in line compared to the rest of the industry. PET outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PET shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.44%.
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.
PET shows a small growth in Revenue. In the last year, the Revenue has grown by 4.61%.
Measured over the past years, PET shows a quite strong growth in Revenue. The Revenue has been growing by 13.85% on average per year.
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
Based on estimates for the next years, PET will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.03% on average per year.
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
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
PET is valuated rather expensively with a Price/Earnings ratio of 20.80.
Compared to the rest of the industry, the Price/Earnings ratio of PET indicates a somewhat cheap valuation: PET is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, PET is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.21, PET is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PET is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
PET is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 18.21 |
4.2 Price Multiples
PET's Enterprise Value to EBITDA is on the same level as the industry average.
PET's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.69 | ||
| EV/EBITDA | 13.29 |
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)7.78
PEG (5Y)0.47
EPS Next 2Y7.2%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
PET has a Yearly Dividend Yield of 1.43%.
PET's Dividend Yield is a higher than the industry average which is at 4.71.
With a Dividend Yield of 1.43, PET pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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 34.33% of its income as dividend. This is a sustainable payout ratio.
DP34.33%
EPS Next 2Y7.2%
EPS Next 3Y8.03%
TSX:PET (8/1/2025, 7:00:00 PM)
33.28
-0.25 (-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 Cap2.27B
Analysts80
Price Target35.54 (6.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)0.91%
PT rev (3m)7.35%
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 | 20.8 | ||
| Fwd PE | 18.21 | ||
| P/S | 2.04 | ||
| P/FCF | 17.69 | ||
| P/OCF | 11.84 | ||
| P/B | 21.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.29 |
EPS(TTM)1.6
EY4.81%
EPS(NY)1.83
Fwd EY5.49%
FCF(TTM)1.88
FCFY5.65%
OCF(TTM)2.81
OCFY8.45%
SpS16.35
BVpS1.52
TBVpS-0.65
PEG (NY)7.78
PEG (5Y)0.47
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 | 2.92 |
F-ScoreN/A
WACC7.09%
ROIC/WACC1.97
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%