PATTERSON COS INC (PDCO) Stock Fundamental Analysis
NASDAQ:PDCO - Nasdaq - US7033951036 - Common Stock
Taking everything into account, PDCO scores 5 out of 10 in our fundamental rating. PDCO was compared to 108 industry peers in the Health Care Providers & Services industry. PDCO has only an average score on both its financial health and profitability. PDCO has a valuation in line with the averages, but it does not seem to be growing. Finally PDCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PDCO had positive earnings in the past year.
In the past year PDCO has reported a negative cash flow from operations.
Of the past 5 years PDCO 4 years were profitable.
PDCO had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.45%, PDCO belongs to the top of the industry, outperforming 83.18% of the companies in the same industry.
PDCO has a better Return On Equity (16.12%) than 88.78% of its industry peers.
PDCO has a better Return On Invested Capital (9.90%) than 85.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PDCO is above the industry average of 8.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 16.12% | ||
| ROIC | 9.9% |
ROA(3y)7.01%
ROA(5y)1.01%
ROE(3y)18.89%
ROE(5y)0.46%
ROIC(3y)11.02%
ROIC(5y)9.45%
1.3 Margins
The Profit Margin of PDCO (2.37%) is better than 69.16% of its industry peers.
PDCO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.43%, PDCO is in line with its industry, outperforming 55.14% of the companies in the same industry.
PDCO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 20.79%, PDCO perfoms like the industry average, outperforming 40.19% of the companies in the same industry.
PDCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.43% | ||
| PM (TTM) | 2.37% | ||
| GM | 20.79% |
OM growth 3Y2.63%
OM growth 5Y9.29%
PM growth 3Y2.37%
PM growth 5Y13.55%
GM growth 3Y1.08%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PDCO is creating some value.
PDCO has less shares outstanding than it did 1 year ago.
PDCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PDCO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.02 indicates that PDCO is not in any danger for bankruptcy at the moment.
PDCO's Altman-Z score of 4.02 is fine compared to the rest of the industry. PDCO outperforms 77.57% of its industry peers.
PDCO has a Debt/Equity ratio of 0.58. This is a neutral value indicating PDCO is somewhat dependend on debt financing.
PDCO has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: PDCO outperforms 54.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.02 |
ROIC/WACC1.2
WACC8.22%
2.3 Liquidity
PDCO has a Current Ratio of 1.37. This is a normal value and indicates that PDCO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PDCO (1.37) is comparable to the rest of the industry.
PDCO has a Quick Ratio of 1.37. This is a bad value and indicates that PDCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PDCO (0.76) is worse than 80.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
PDCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.17%.
PDCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.53% yearly.
PDCO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
PDCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.34% yearly.
EPS 1Y (TTM)-10.17%
EPS 3Y6.36%
EPS 5Y10.53%
EPS Q2Q%-6%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.57%
Revenue growth 5Y3.34%
Sales Q2Q%1.31%
3.2 Future
The Earnings Per Share is expected to grow by 6.19% on average over the next years.
The Revenue is expected to grow by 2.70% on average over the next years.
EPS Next Y0%
EPS Next 2Y3.66%
EPS Next 3Y5.24%
EPS Next 5Y6.19%
Revenue Next Year1.03%
Revenue Next 2Y1.95%
Revenue Next 3Y2.59%
Revenue Next 5Y2.7%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.60 indicates a correct valuation of PDCO.
Compared to the rest of the industry, the Price/Earnings ratio of PDCO indicates a rather cheap valuation: PDCO is cheaper than 80.37% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PDCO to the average of the S&P500 Index (28.29), we can say PDCO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.47, the valuation of PDCO can be described as correct.
Based on the Price/Forward Earnings ratio, PDCO is valued cheaper than 82.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. PDCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PDCO is valued a bit cheaper than 76.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
The decent profitability rating of PDCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y3.66%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
PDCO has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.87, PDCO pays a better dividend. On top of this PDCO pays more dividend than 95.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, PDCO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of PDCO has a limited annual growth rate of 0.19%.
PDCO has been paying a dividend for at least 10 years, so it has a reliable track record.
PDCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.19%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
60.70% of the earnings are spent on dividend by PDCO. This is not a sustainable payout ratio.
The dividend of PDCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.7%
EPS Next 2Y3.66%
EPS Next 3Y5.24%
PATTERSON COS INC
NASDAQ:PDCO (1/21/2025, 8:19:50 PM)
After market: 30.85 -0.1 (-0.32%)30.95
+0.05 (+0.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.57%
Inst Owner Change-1.43%
Ins Owners1%
Ins Owner Change2.46%
Market Cap2.73B
Analysts69
Price Target29.8 (-3.72%)
Short Float %2.31%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend1.06
Dividend Growth(5Y)0.19%
DP60.7%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.38%
Min EPS beat(2)-26.41%
Max EPS beat(2)-6.34%
EPS beat(4)0
Avg EPS beat(4)-9.62%
Min EPS beat(4)-26.41%
Max EPS beat(4)-2.48%
EPS beat(8)2
Avg EPS beat(8)-4.71%
EPS beat(12)5
Avg EPS beat(12)-1.02%
EPS beat(16)8
Avg EPS beat(16)-0.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-5.01%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
Min Revenue beat(4)-5.01%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-2.14%
Revenue beat(12)2
Avg Revenue beat(12)-2.33%
Revenue beat(16)6
Avg Revenue beat(16)-0.92%
PT rev (1m)10.96%
PT rev (3m)10.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 12.47 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.84 | ||
| P/tB | 4.39 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)2.12
EY6.85%
EPS(NY)2.48
Fwd EY8.02%
FCF(TTM)-9.33
FCFYN/A
OCF(TTM)-8.64
OCFYN/A
SpS74.27
BVpS10.91
TBVpS7.04
PEG (NY)N/A
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 16.12% | ||
| ROCE | 14.98% | ||
| ROIC | 9.9% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 13.89% | ||
| OM | 3.43% | ||
| PM (TTM) | 2.37% | ||
| GM | 20.79% | ||
| FCFM | N/A |
ROA(3y)7.01%
ROA(5y)1.01%
ROE(3y)18.89%
ROE(5y)0.46%
ROIC(3y)11.02%
ROIC(5y)9.45%
ROICexc(3y)11.95%
ROICexc(5y)10.22%
ROICexgc(3y)15.51%
ROICexgc(5y)13.52%
ROCE(3y)15.2%
ROCE(5y)12.91%
ROICexcg growth 3Y2.47%
ROICexcg growth 5Y10.06%
ROICexc growth 3Y4.89%
ROICexc growth 5Y20.88%
OM growth 3Y2.63%
OM growth 5Y9.29%
PM growth 3Y2.37%
PM growth 5Y13.55%
GM growth 3Y1.08%
GM growth 5Y-0.33%
F-Score4
Asset Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 66.35% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.02 |
F-Score4
WACC8.22%
ROIC/WACC1.2
Cap/Depr(3y)66.71%
Cap/Depr(5y)56.73%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.17%
EPS 3Y6.36%
EPS 5Y10.53%
EPS Q2Q%-6%
EPS Next Y0%
EPS Next 2Y3.66%
EPS Next 3Y5.24%
EPS Next 5Y6.19%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.57%
Revenue growth 5Y3.34%
Sales Q2Q%1.31%
Revenue Next Year1.03%
Revenue Next 2Y1.95%
Revenue Next 3Y2.59%
Revenue Next 5Y2.7%
EBIT growth 1Y-18.58%
EBIT growth 3Y6.29%
EBIT growth 5Y12.93%
EBIT Next Year12.21%
EBIT Next 3Y7.83%
EBIT Next 5Y5.08%
FCF growth 1Y18.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.73%
OCF growth 3YN/A
OCF growth 5YN/A