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. Both the profitability and financial health of WOOF have multiple concerns. WOOF has a valuation in line with the averages, 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.
In the past 5 years WOOF always reported a positive cash flow from operatings.
1.2 Ratios
WOOF's Return On Assets of -1.31% is on the low side compared to the rest of the industry. WOOF is outperformed by 60.33% of its industry peers.
With a Return On Equity value of -6.05%, WOOF perfoms like the industry average, outperforming 44.63% of the companies in the same industry.
WOOF's Return On Invested Capital of 0.79% is in line compared to the rest of the industry. WOOF outperforms 41.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WOOF is significantly below the industry average of 13.13%.
| 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
With a Operating Margin value of 0.66%, WOOF perfoms like the industry average, outperforming 40.50% of the companies in the same industry.
In the last couple of years the Operating Margin of WOOF has declined.
With a Gross Margin value of 38.08%, WOOF perfoms like the industry average, outperforming 55.37% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WOOF is destroying value.
Compared to 1 year ago, WOOF has more shares outstanding
Compared to 5 years ago, WOOF has more shares outstanding
Compared to 1 year ago, WOOF has a worse debt to assets ratio.
2.2 Solvency
WOOF has an Altman-Z score of 0.97. This is a bad value and indicates that WOOF is not financially healthy and even has some risk of bankruptcy.
WOOF's Altman-Z score of 0.97 is on the low side compared to the rest of the industry. WOOF is outperformed by 71.07% of its industry peers.
WOOF has a debt to FCF ratio of 33.81. This is a negative value and a sign of low solvency as WOOF would need 33.81 years to pay back of all of its debts.
WOOF has a Debt to FCF ratio (33.81) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.43 is on the high side and indicates that WOOF has dependencies on debt financing.
WOOF has a worse Debt to Equity ratio (1.43) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 33.81 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.08
WACC9.86%
2.3 Liquidity
WOOF has a Current 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.
With a Current ratio value of 0.85, WOOF is not doing good in the industry: 83.47% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.25, WOOF is not doing good in the industry: 80.99% of the companies in the same industry are doing better.
| 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%.
Looking at the last year, WOOF shows a decrease in Revenue. The Revenue has decreased by -2.37% in the last year.
WOOF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.64% yearly.
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
WOOF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.31% yearly.
EPS Next Y271.1%
EPS Next 2Y132.08%
EPS Next 3Y81.86%
EPS Next 5Y55.44%
Revenue Next Year-1.84%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.58%
Revenue Next 5Y0.31%
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
WOOF reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 12.15 indicates a correct valuation of WOOF.
Based on the Price/Forward Earnings ratio, WOOF is valued a bit cheaper than the industry average as 67.77% of the companies are valued more expensively.
WOOF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WOOF is valued a bit cheaper than 60.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WOOF is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
WOOF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WOOF's earnings are expected to grow with 81.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y132.08%
EPS Next 3Y81.86%
5. Dividend
5.1 Amount
No dividends for WOOF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.55
+0.08 (+3.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners67.69%
Inst Owner Change-0.18%
Ins Owners4.1%
Ins Owner Change28.66%
Market Cap803.58M
Analysts69.41
Price Target3.9 (52.94%)
Short Float %34.86%
Short Ratio5.88
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)1.68%
PT rev (3m)-21.42%
EPS NQ rev (1m)-21.07%
EPS NQ rev (3m)58.56%
EPS NY rev (1m)0%
EPS NY rev (3m)79.56%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-4.75%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-4.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.15 | ||
| P/S | 0.13 | ||
| P/FCF | 17.14 | ||
| P/OCF | 4.71 | ||
| P/B | 0.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.3 |
EPS(TTM)-0.01
EYN/A
EPS(NY)0.21
Fwd EY8.23%
FCF(TTM)0.15
FCFY5.83%
OCF(TTM)0.54
OCFY21.23%
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 | 0.97 |
F-Score6
WACC9.86%
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 2Y132.08%
EPS Next 3Y81.86%
EPS Next 5Y55.44%
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y1.75%
Revenue growth 5Y6.64%
Sales Q2Q%-2.34%
Revenue Next Year-1.84%
Revenue Next 2Y-0.17%
Revenue Next 3Y0.58%
Revenue Next 5Y0.31%
EBIT growth 1Y1905.57%
EBIT growth 3Y-61.76%
EBIT growth 5Y-34.33%
EBIT Next Year286.43%
EBIT Next 3Y64.77%
EBIT Next 5Y36.24%
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%