PETCO HEALTH AND WELLNESS CO (WOOF)
US71601V1052 - Common Stock
WOOF gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. Both the profitability and financial health of WOOF have multiple concerns. WOOF does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year WOOF was profitable.
In the past year WOOF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WOOF reported negative net income in multiple years.
WOOF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WOOF has a worse Return On Assets (-23.87%) than 84.92% of its industry peers.
The Return On Equity of WOOF (-108.09%) is worse than 79.37% of its industry peers.
WOOF has a Return On Invested Capital of 0.68%. This is comparable to the rest of the industry: WOOF outperforms 40.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WOOF is significantly below the industry average of 13.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -23.87% | ||
| ROE | -108.09% | ||
| ROIC | 0.68% |
ROA(3y)-6.66%
ROA(5y)-4.39%
ROE(3y)-32.35%
ROE(5y)-23.03%
ROIC(3y)2.33%
ROIC(5y)2.25%
1.3 Margins
Looking at the Operating Margin, with a value of 0.67%, WOOF is in line with its industry, outperforming 41.27% of the companies in the same industry.
WOOF's Operating Margin has declined in the last couple of years.
WOOF has a Gross Margin (37.63%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WOOF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.67% | ||
| PM (TTM) | N/A | ||
| GM | 37.63% |
OM growth 3Y-43.66%
OM growth 5Y-27.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.21%
GM growth 5Y-2.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WOOF is destroying value.
Compared to 1 year ago, WOOF has more shares outstanding
The number of shares outstanding for WOOF has been increased compared to 5 years ago.
Compared to 1 year ago, WOOF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that WOOF is in the distress zone and has some risk of bankruptcy.
WOOF has a worse Altman-Z score (1.00) than 76.98% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that WOOF has dependencies on debt financing.
WOOF has a worse Debt to Equity ratio (1.33) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.08
WACC9%
2.3 Liquidity
WOOF has a Current Ratio of 0.86. This is a bad value and indicates that WOOF is not financially healthy enough and could expect problems in meeting its short term obligations.
WOOF has a Current ratio of 0.86. This is amonst the worse of the industry: WOOF underperforms 88.10% of its industry peers.
WOOF has a Quick Ratio of 0.86. This is a bad value and indicates that WOOF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WOOF (0.24) is worse than 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for WOOF have decreased strongly by -88.00% in the last year.
Looking at the last year, WOOF shows a small growth in Revenue. The Revenue has grown by 3.63% in the last year.
The Revenue has been growing slightly by 7.33% on average over the past years.
EPS 1Y (TTM)-88%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-91.3%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y8.33%
Revenue growth 5Y7.33%
Revenue growth Q2Q6.11%
3.2 Future
Based on estimates for the next years, WOOF will show a very strong growth in Earnings Per Share. The EPS will grow by 26.83% on average per year.
The Revenue is expected to grow by 0.51% on average over the next years.
EPS Next Y-186.7%
EPS Next 2Y2.03%
EPS Next 3Y26.83%
EPS Next 5YN/A
Revenue Next Year-1.15%
Revenue Next 2Y0.88%
Revenue Next 3Y1.32%
Revenue Next 5Y0.51%
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
With a Price/Earnings ratio of 26.50, WOOF can be considered very expensive at the moment.
WOOF's Price/Earnings ratio is in line with the industry average.
WOOF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for WOOF. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
63.49% of the companies in the same industry are more expensive than WOOF, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WOOF's earnings are expected to grow with 26.83% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.03%
EPS Next 3Y26.83%
5. Dividend
5.1 Amount
WOOF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PETCO HEALTH AND WELLNESS CO
NASDAQ:WOOF (5/16/2024, 9:49:03 AM)
2.385
-0.23 (-8.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap733.08M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.5 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -23.87% | ||
| ROE | -108.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.67% | ||
| PM (TTM) | N/A | ||
| GM | 37.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-88%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-186.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.63%
Revenue growth 3Y8.33%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y