PETIQ INC (PETQ) Stock Fundamental Analysis
NASDAQ:PETQ - Nasdaq - US71639T1060 - Common Stock - Currency: USD
Taking everything into account, PETQ scores 5 out of 10 in our fundamental rating. PETQ was compared to 103 industry peers in the Health Care Providers & Services industry. PETQ has only an average score on both its financial health and profitability. PETQ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PETQ was profitable.
PETQ had a positive operating cash flow in the past year.
PETQ had negative earnings in 4 of the past 5 years.
PETQ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PETQ has a better Return On Assets (1.48%) than 61.74% of its industry peers.
With a decent Return On Equity value of 5.13%, PETQ is doing good in the industry, outperforming 67.83% of the companies in the same industry.
PETQ's Return On Invested Capital of 7.96% is amongst the best of 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 significantly below the industry average of 9.71%.
The last Return On Invested Capital (7.96%) for PETQ is above the 3 year average (4.51%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
PETQ's Profit Margin of 1.17% is fine compared to the rest of the industry. PETQ outperforms 64.35% of its industry peers.
With a decent Operating Margin value of 6.32%, PETQ is doing good in the industry, outperforming 70.43% of the companies in the same industry.
PETQ's Operating Margin has improved in the last couple of years.
The Gross Margin of PETQ (24.63%) is comparable to the rest of the industry.
PETQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PETQ is still creating some value.
PETQ has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PETQ has been increased compared to 5 years ago.
Compared to 1 year ago, PETQ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.60 indicates that PETQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of PETQ (2.60) is better than 66.09% of its industry peers.
The Debt to FCF ratio of PETQ is 36.99, which is on the high side as it means it would take PETQ, 36.99 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 36.99, PETQ perfoms like the industry average, outperforming 54.78% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 36.99 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.05
WACC7.57%
2.3 Liquidity
PETQ has a Current Ratio of 2.58. This indicates that PETQ is financially healthy and has no problem in meeting its short term obligations.
PETQ has a Current ratio of 2.58. This is amongst the best in the industry. PETQ outperforms 82.61% of its industry peers.
PETQ has a Quick Ratio of 1.68. This is a normal value and indicates that PETQ is financially healthy and should not expect problems in meeting its short term obligations.
PETQ's Quick ratio of 1.68 is fine compared to the rest of the industry. PETQ outperforms 66.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.58% over the past year.
PETQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.07% yearly.
Looking at the last year, PETQ shows a quite strong growth in Revenue. The Revenue has grown by 13.57% in the last year.
Measured over the past years, PETQ shows a quite strong growth in Revenue. The Revenue has been growing by 15.83% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.61, which indicates a rather expensive current valuation of PETQ.
PETQ's Price/Earnings ratio is a bit cheaper when compared to the industry. PETQ is cheaper than 73.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. PETQ is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.30 indicates a correct valuation of PETQ.
Based on the Price/Forward Earnings ratio, PETQ is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, PETQ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PETQ is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PETQ is valued a bit cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.88 | ||
| EV/EBITDA | 11.52 |
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.
PETQ has a very decent profitability rating, which 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%
5. Dividend
5.1 Amount
No dividends for PETQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.98
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.11%
Inst Owner Change0%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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