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PETIQ INC (PETQ) Stock Fundamental Analysis

NASDAQ:PETQ - Nasdaq - US71639T1060 - Common Stock - Currency: USD

30.98  -0.01 (-0.03%)

After market: 30.98 0 (0%)

Fundamental Rating

5

Overall PETQ gets a fundamental rating of 5 out of 10. We evaluated PETQ against 102 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of PETQ get a neutral evaluation. Nothing too spectacular is happening here. PETQ has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year PETQ was profitable.
In the past year PETQ had a positive cash flow from operations.
In the past 5 years PETQ reported 4 times negative net income.
PETQ had a positive operating cash flow in 4 of the past 5 years.
PETQ Yearly Net Income VS EBIT VS OCF VS FCFPETQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M -100M

1.2 Ratios

PETQ has a Return On Assets of 1.48%. This is in the better half of the industry: PETQ outperforms 61.74% of its industry peers.
PETQ has a Return On Equity of 5.13%. This is in the better half of the industry: PETQ outperforms 67.83% of its industry peers.
PETQ has a Return On Invested Capital of 7.96%. This is amongst the best in the industry. PETQ outperforms 80.87% of its industry peers.
PETQ had an Average Return On Invested Capital over the past 3 years of 4.51%. This is below the industry average of 9.50%.
The 3 year average ROIC (4.51%) for PETQ is below the current ROIC(7.96%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.48%
ROE 5.13%
ROIC 7.96%
ROA(3y)-2.53%
ROA(5y)-4%
ROE(3y)-9.44%
ROE(5y)-13.98%
ROIC(3y)4.51%
ROIC(5y)N/A
PETQ Yearly ROA, ROE, ROICPETQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20 -30

1.3 Margins

PETQ has a Profit Margin of 1.17%. This is in the better half of the industry: PETQ outperforms 64.35% of its industry peers.
The Operating Margin of PETQ (6.32%) is better than 70.43% of its industry peers.
In the last couple of years the Operating Margin of PETQ has grown nicely.
PETQ has a Gross Margin (24.63%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PETQ has grown nicely.
Industry RankSector Rank
OM 6.32%
PM (TTM) 1.17%
GM 24.63%
OM growth 3YN/A
OM growth 5Y28.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.79%
GM growth 5Y7.79%
PETQ Yearly Profit, Operating, Gross MarginsPETQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

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5

2. Health

2.1 Basic Checks

PETQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PETQ has been increased compared to 1 year ago.
Compared to 5 years ago, PETQ has more shares outstanding
PETQ has a better debt/assets ratio than last year.
PETQ Yearly Shares OutstandingPETQ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
PETQ Yearly Total Debt VS Total AssetsPETQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

PETQ has an Altman-Z score of 2.60. This is not the best score and indicates that PETQ is in the grey zone with still only limited risk for bankruptcy at the moment.
PETQ's Altman-Z score of 2.60 is fine compared to the rest of the industry. PETQ outperforms 66.09% of its industry peers.
PETQ has a debt to FCF ratio of 36.99. This is a negative value and a sign of low solvency as PETQ would need 36.99 years to pay back of all of its debts.
PETQ's Debt to FCF ratio of 36.99 is in line compared to the rest of the industry. PETQ outperforms 54.78% of its industry peers.
A Debt/Equity ratio of 1.69 is on the high side and indicates that PETQ has dependencies on debt financing.
PETQ has a worse Debt to Equity ratio (1.69) than 73.04% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 36.99
Altman-Z 2.6
ROIC/WACC1.05
WACC7.57%
PETQ Yearly LT Debt VS Equity VS FCFPETQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 2.58 indicates that PETQ has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.58, PETQ belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that PETQ should not have too much problems paying its short term obligations.
PETQ has a better Quick ratio (1.68) than 66.09% of its industry peers.
Industry RankSector Rank
Current Ratio 2.58
Quick Ratio 1.68
PETQ Yearly Current Assets VS Current LiabilitesPETQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 64.58% over the past year.
The Earnings Per Share has been growing slightly by 7.07% on average over the past years.
The Revenue has grown by 13.57% in the past year. This is quite good.
The Revenue has been growing by 15.83% on average over the past years. This is quite good.
EPS 1Y (TTM)64.58%
EPS 3Y20.01%
EPS 5Y7.07%
EPS Q2Q%52.17%
Revenue 1Y (TTM)13.57%
Revenue growth 3Y12.2%
Revenue growth 5Y15.83%
Sales Q2Q%4.58%

3.2 Future

PETQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.07% yearly.
Based on estimates for the next years, PETQ will show a small growth in Revenue. The Revenue will grow by 6.21% on average per year.
EPS Next Y34.03%
EPS Next 2Y25.33%
EPS Next 3Y23.23%
EPS Next 5Y20.07%
Revenue Next Year8.33%
Revenue Next 2Y6.86%
Revenue Next 3Y7.06%
Revenue Next 5Y6.21%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PETQ Yearly Revenue VS EstimatesPETQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
PETQ Yearly EPS VS EstimatesPETQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.61, which indicates a rather expensive current valuation of PETQ.
Based on the Price/Earnings ratio, PETQ is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.82, PETQ is valued a bit cheaper.
PETQ is valuated correctly with a Price/Forward Earnings ratio of 16.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PETQ indicates a somewhat cheap valuation: PETQ is cheaper than 73.91% of the companies listed in the same industry.
PETQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 19.61
Fwd PE 16.3
PETQ Price Earnings VS Forward Price EarningsPETQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PETQ is valued a bit cheaper than 73.04% of the companies in the same industry.
PETQ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PETQ is cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 77.88
EV/EBITDA 11.52
PETQ Per share dataPETQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

PETQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PETQ may justify a higher PE ratio.
A more expensive valuation may be justified as PETQ's earnings are expected to grow with 23.23% in the coming years.
PEG (NY)0.58
PEG (5Y)2.77
EPS Next 2Y25.33%
EPS Next 3Y23.23%

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0

5. Dividend

5.1 Amount

PETQ does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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PETIQ INC

NASDAQ:PETQ (10/24/2024, 8:00:01 PM)

After market: 30.98 0 (0%)

30.98

-0.01 (-0.03%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)08-07 2024-08-07/bmo
Earnings (Next)11-07 2024-11-07/amc
Inst Owners99.11%
Inst Owner Change-69.08%
Ins Owners0.82%
Ins Owner Change0%
Market Cap933.43M
Analysts76.36
Price Target31.11 (0.42%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.83%
Min EPS beat(2)33.29%
Max EPS beat(2)38.36%
EPS beat(4)4
Avg EPS beat(4)596.09%
Min EPS beat(4)33.29%
Max EPS beat(4)2252.94%
EPS beat(8)7
Avg EPS beat(8)329.26%
EPS beat(12)9
Avg EPS beat(12)214.99%
EPS beat(16)11
Avg EPS beat(16)161.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)0.63%
Revenue beat(4)3
Avg Revenue beat(4)7.73%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)18.56%
Revenue beat(8)6
Avg Revenue beat(8)5.08%
Revenue beat(12)9
Avg Revenue beat(12)4.61%
Revenue beat(16)11
Avg Revenue beat(16)4.38%
PT rev (1m)0%
PT rev (3m)5.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.9%
EPS NY rev (1m)0%
EPS NY rev (3m)8.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 19.61
Fwd PE 16.3
P/S 0.82
P/FCF 77.88
P/OCF 46.16
P/B 3.62
P/tB N/A
EV/EBITDA 11.52
EPS(TTM)1.58
EY5.1%
EPS(NY)1.9
Fwd EY6.13%
FCF(TTM)0.4
FCFY1.28%
OCF(TTM)0.67
OCFY2.17%
SpS37.65
BVpS8.56
TBVpS-3.09
PEG (NY)0.58
PEG (5Y)2.77
Profitability
Industry RankSector Rank
ROA 1.48%
ROE 5.13%
ROCE 10.07%
ROIC 7.96%
ROICexc 9.02%
ROICexgc 20.48%
OM 6.32%
PM (TTM) 1.17%
GM 24.63%
FCFM 1.06%
ROA(3y)-2.53%
ROA(5y)-4%
ROE(3y)-9.44%
ROE(5y)-13.98%
ROIC(3y)4.51%
ROIC(5y)N/A
ROICexc(3y)5.32%
ROICexc(5y)N/A
ROICexgc(3y)14.77%
ROICexgc(5y)N/A
ROCE(3y)5.71%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y40.46%
ROICexc growth 3YN/A
ROICexc growth 5Y36.64%
OM growth 3YN/A
OM growth 5Y28.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.79%
GM growth 5Y7.79%
F-Score8
Asset Turnover1.27
Health
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF 36.99
Debt/EBITDA 3.89
Cap/Depr 20.3%
Cap/Sales 0.73%
Interest Coverage 2.16
Cash Conversion 18.01%
Profit Quality 90.51%
Current Ratio 2.58
Quick Ratio 1.68
Altman-Z 2.6
F-Score8
WACC7.57%
ROIC/WACC1.05
Cap/Depr(3y)44.62%
Cap/Depr(5y)115.7%
Cap/Sales(3y)1.83%
Cap/Sales(5y)4.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.58%
EPS 3Y20.01%
EPS 5Y7.07%
EPS Q2Q%52.17%
EPS Next Y34.03%
EPS Next 2Y25.33%
EPS Next 3Y23.23%
EPS Next 5Y20.07%
Revenue 1Y (TTM)13.57%
Revenue growth 3Y12.2%
Revenue growth 5Y15.83%
Sales Q2Q%4.58%
Revenue Next Year8.33%
Revenue Next 2Y6.86%
Revenue Next 3Y7.06%
Revenue Next 5Y6.21%
EBIT growth 1Y62.93%
EBIT growth 3YN/A
EBIT growth 5Y48.99%
EBIT Next Year95.79%
EBIT Next 3Y33.01%
EBIT Next 5Y22.34%
FCF growth 1Y173.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y340.55%
OCF growth 3YN/A
OCF growth 5YN/A