2.955 USD
+0.04 (+1.55%)
WOOF gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. Both the profitability and financial health of WOOF have multiple concerns. WOOF is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- WOOF had negative earnings in the past year.
- In the past year WOOF had a positive cash flow from operations.
- In multiple years WOOF reported negative net income over the last 5 years.
- WOOF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WOOF has a Return On Assets (-0.04%) which is comparable to the rest of the industry.
- WOOF has a Return On Equity of -0.19%. This is comparable to the rest of the industry: WOOF outperforms 54.55% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.04%, WOOF is in line with its industry, outperforming 44.63% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WOOF is significantly below the industry average of 12.37%.
- The last Return On Invested Capital (2.04%) for WOOF is above the 3 year average (1.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.04% | ||
| ROE | -0.19% | ||
| ROIC | 2.04% |
ROA(3y)-8.15%
ROA(5y)-4.47%
ROE(3y)-37.81%
ROE(5y)-21.49%
ROIC(3y)1.45%
ROIC(5y)2.27%
1.3 Margins
- WOOF has a Operating Margin (1.77%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of WOOF has declined.
- WOOF has a Gross Margin (38.57%) which is in line with its industry peers.
- WOOF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.77% | ||
| PM (TTM) | N/A | ||
| GM | 38.57% |
OM growth 3Y-62.42%
OM growth 5Y-38.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.11%
GM growth 5Y-2.44%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WOOF is destroying value.
- WOOF has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, WOOF has more shares outstanding
- WOOF has a worse debt/assets ratio than last year.
2.2 Solvency
- WOOF has an Altman-Z score of 1.03. This is a bad value and indicates that WOOF is not financially healthy and even has some risk of bankruptcy.
- WOOF has a worse Altman-Z score (1.03) than 71.07% of its industry peers.
- WOOF has a debt to FCF ratio of 12.28. This is a negative value and a sign of low solvency as WOOF would need 12.28 years to pay back of all of its debts.
- WOOF has a Debt to FCF ratio of 12.28. This is comparable to the rest of the industry: WOOF outperforms 51.24% of its industry peers.
- WOOF has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of WOOF (1.37) is worse than 61.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 12.28 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.2
WACC10.17%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that WOOF may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.91, WOOF is doing worse than 80.17% of the companies in the same industry.
- WOOF has a Quick Ratio of 0.91. This is a bad value and indicates that WOOF is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.35, WOOF is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- The earnings per share for WOOF have decreased strongly by -168.89% in the last year.
- WOOF shows a decrease in Revenue. In the last year, the revenue decreased by -3.85%.
- The Revenue has been growing slightly by 6.64% on average over the past years.
EPS 1Y (TTM)-168.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%154%
Revenue 1Y (TTM)-3.85%
Revenue growth 3Y1.75%
Revenue growth 5Y6.64%
Sales Q2Q%-3.11%
3.2 Future
- The Earnings Per Share is expected to grow by 50.00% on average over the next years. This is a very strong growth
- WOOF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.21% yearly.
EPS Next Y319.91%
EPS Next 2Y126.77%
EPS Next 3Y77.54%
EPS Next 5Y50%
Revenue Next Year-2.85%
Revenue Next 2Y-1.12%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.21%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for WOOF. In the last year negative earnings were reported.
- With a Price/Forward Earnings ratio of 15.17, WOOF is valued correctly.
- 76.86% of the companies in the same industry are more expensive than WOOF, based on the Price/Forward Earnings ratio.
- WOOF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.17 |
4.2 Price Multiples
- WOOF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WOOF is cheaper than 74.38% of the companies in the same industry.
- WOOF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WOOF is cheaper than 91.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as WOOF's earnings are expected to grow with 77.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y126.77%
EPS Next 3Y77.54%
5. Dividend
5.1 Amount
- No dividends for WOOF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PETCO HEALTH AND WELLNESS CO / WOOF FAQ
Can you provide the ChartMill fundamental rating for PETCO HEALTH AND WELLNESS CO?
ChartMill assigns a fundamental rating of 2 / 10 to WOOF.
What is the valuation status for WOOF stock?
ChartMill assigns a valuation rating of 5 / 10 to PETCO HEALTH AND WELLNESS CO (WOOF). This can be considered as Fairly Valued.
Can you provide the profitability details for PETCO HEALTH AND WELLNESS CO?
PETCO HEALTH AND WELLNESS CO (WOOF) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for WOOF stock?
The Earnings per Share (EPS) of PETCO HEALTH AND WELLNESS CO (WOOF) is expected to grow by 319.91% in the next year.