PETCO HEALTH AND WELLNESS CO (WOOF) Stock Fundamental Analysis
NASDAQ:WOOF - Nasdaq - US71601V1052 - Common Stock - Currency: USD
WOOF gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. WOOF has a bad profitability rating. Also its financial health evaluation is rather negative. WOOF is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WOOF has reported negative net income.
WOOF had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WOOF reported negative net income in multiple years.
In the past 5 years WOOF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WOOF (-1.31%) is comparable to the rest of the industry.
WOOF has a Return On Equity (-6.05%) which is in line with its industry peers.
With a Return On Invested Capital value of 0.79%, WOOF perfoms like the industry average, outperforming 41.32% 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 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -6.05% | ||
| ROIC | 0.79% |
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
Looking at the Operating Margin, with a value of 0.66%, WOOF is in line with its industry, outperforming 40.50% of the companies in the same industry.
WOOF's Operating Margin has declined in the last couple of years.
WOOF has a Gross Margin of 38.08%. This is comparable to the rest of the industry: WOOF outperforms 56.20% of its industry peers.
WOOF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 38.08% |
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.
WOOF has more shares outstanding than it did 5 years ago.
WOOF has a worse debt/assets ratio than last year.
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.
The Altman-Z score of WOOF (1.00) is worse than 71.90% of its industry peers.
The Debt to FCF ratio of WOOF is 33.81, which is on the high side as it means it would take WOOF, 33.81 years of fcf income to pay off all of its debts.
WOOF has a Debt to FCF ratio of 33.81. This is comparable to the rest of the industry: WOOF outperforms 48.76% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that WOOF has dependencies on debt financing.
WOOF has a Debt to Equity ratio of 1.43. This is in the lower half of the industry: WOOF underperforms 62.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 33.81 | ||
| Altman-Z | 1 |
ROIC/WACC0.08
WACC10.25%
2.3 Liquidity
A Current Ratio of 0.85 indicates that WOOF may have some problems paying its short term obligations.
WOOF has a Current ratio of 0.85. This is amonst the worse of the industry: WOOF underperforms 83.47% of its industry peers.
WOOF has a Quick Ratio of 0.85. 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 (0.25) is worse than 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
WOOF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
WOOF shows a decrease in Revenue. In the last year, the revenue decreased by -2.37%.
The Revenue has been growing slightly by 6.64% on average over the past years.
EPS 1Y (TTM)-20%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y1.75%
Revenue growth 5Y6.64%
Sales Q2Q%-2.34%
3.2 Future
The Earnings Per Share is expected to grow by 55.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.30% on average over the next years.
EPS Next Y271.1%
EPS Next 2Y129.49%
EPS Next 3Y73.65%
EPS Next 5Y55.44%
Revenue Next Year-2.19%
Revenue Next 2Y-0.41%
Revenue Next 3Y0.46%
Revenue Next 5Y0.3%
3.3 Evolution
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
WOOF reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
WOOF is valuated correctly with a Price/Forward Earnings ratio of 14.66.
Based on the Price/Forward Earnings ratio, WOOF is valued a bit cheaper than the industry average as 66.94% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WOOF to the average of the S&P500 Index (21.76), we can say WOOF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WOOF is valued a bit cheaper than the industry average as 60.33% of the companies are valued more expensively.
WOOF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WOOF is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.97 | ||
| EV/EBITDA | 10.09 |
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 73.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y129.49%
EPS Next 3Y73.65%
5. Dividend
5.1 Amount
No dividends for WOOF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.97
-0.1 (-3.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners67.69%
Inst Owner Change0%
Ins Owners4.1%
Ins Owner Change28.74%
Market Cap935.94M
Analysts69.41
Price Target3.95 (33%)
Short Float %33.9%
Short Ratio5.9
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)136.57%
Min EPS beat(2)118.13%
Max EPS beat(2)155.02%
EPS beat(4)4
Avg EPS beat(4)84.01%
Min EPS beat(4)15.3%
Max EPS beat(4)155.02%
EPS beat(8)7
Avg EPS beat(8)8.16%
EPS beat(12)9
Avg EPS beat(12)5.28%
EPS beat(16)13
Avg EPS beat(16)7.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)-2.39%
Revenue beat(4)0
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)-1.28%
Revenue beat(8)1
Avg Revenue beat(8)-1.54%
Revenue beat(12)2
Avg Revenue beat(12)-1.47%
Revenue beat(16)4
Avg Revenue beat(16)-0.82%
PT rev (1m)1.29%
PT rev (3m)2.99%
EPS NQ rev (1m)11.99%
EPS NQ rev (3m)88.89%
EPS NY rev (1m)0%
EPS NY rev (3m)125.21%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-4.87%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.66 | ||
| P/S | 0.15 | ||
| P/FCF | 19.97 | ||
| P/OCF | 5.49 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)-0.01
EYN/A
EPS(NY)0.2
Fwd EY6.82%
FCF(TTM)0.15
FCFY5.01%
OCF(TTM)0.54
OCFY18.23%
SpS19.3
BVpS3.51
TBVpS-2.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -6.05% | ||
| ROCE | 1% | ||
| ROIC | 0.79% | ||
| ROICexc | 0.81% | ||
| ROICexgc | 1.67% | ||
| OM | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 38.08% | ||
| FCFM | 0.77% |
ROA(3y)-8.15%
ROA(5y)-4.47%
ROE(3y)-37.81%
ROE(5y)-21.49%
ROIC(3y)1.45%
ROIC(5y)2.27%
ROICexc(3y)1.5%
ROICexc(5y)2.35%
ROICexgc(3y)3.54%
ROICexgc(5y)5.94%
ROCE(3y)1.84%
ROCE(5y)2.88%
ROICexcg growth 3Y-60.84%
ROICexcg growth 5Y-33.82%
ROICexc growth 3Y-57.79%
ROICexc growth 5Y-30.5%
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%
F-Score6
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 33.81 | ||
| Debt/EBITDA | 6.59 | ||
| Cap/Depr | 62.03% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 0.3 | ||
| Cash Conversion | 71.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 1 |
F-Score6
WACC10.25%
ROIC/WACC0.08
Cap/Depr(3y)106.63%
Cap/Depr(5y)109.98%
Cap/Sales(3y)3.43%
Cap/Sales(5y)3.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%125%
EPS Next Y271.1%
EPS Next 2Y129.49%
EPS Next 3Y73.65%
EPS Next 5Y55.44%
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y1.75%
Revenue growth 5Y6.64%
Sales Q2Q%-2.34%
Revenue Next Year-2.19%
Revenue Next 2Y-0.41%
Revenue Next 3Y0.46%
Revenue Next 5Y0.3%
EBIT growth 1Y1905.57%
EBIT growth 3Y-61.76%
EBIT growth 5Y-34.33%
EBIT Next Year286.43%
EBIT Next 3Y65.32%
EBIT Next 5Y36.54%
FCF growth 1Y-9.86%
FCF growth 3Y-25.28%
FCF growth 5YN/A
OCF growth 1Y-47.69%
OCF growth 3Y-20.84%
OCF growth 5Y10%