PATTERSON COS INC (PDCO) Stock Fundamental Analysis
NASDAQ:PDCO - Nasdaq - US7033951036 - Common Stock - Currency: USD
Overall PDCO gets a fundamental rating of 5 out of 10. We evaluated PDCO against 108 industry peers in the Health Care Providers & Services industry. PDCO has an average financial health and profitability rating. PDCO is valued correctly, but it does not seem to be growing. PDCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PDCO was profitable.
In the past year PDCO has reported a negative cash flow from operations.
PDCO had positive earnings in 4 of the past 5 years.
In the past 5 years PDCO always reported negative operating cash flow.
1.2 Ratios
PDCO's Return On Assets of 5.45% is amongst the best of the industry. PDCO outperforms 82.24% of its industry peers.
PDCO's Return On Equity of 16.12% is amongst the best of the industry. PDCO outperforms 86.92% of its industry peers.
PDCO's Return On Invested Capital of 9.90% is amongst the best of the industry. PDCO outperforms 85.05% of its industry peers.
PDCO had an Average Return On Invested Capital over the past 3 years of 11.02%. This is above the industry average of 8.14%.
| 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
PDCO has a better Profit Margin (2.37%) than 69.16% of its industry peers.
PDCO's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 3.43%, PDCO perfoms like the industry average, outperforming 54.21% of the companies in the same industry.
In the last couple of years the Operating Margin of PDCO has grown nicely.
PDCO has a Gross Margin of 20.79%. This is in the lower half of the industry: PDCO underperforms 60.75% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PDCO is still creating some value.
Compared to 1 year ago, PDCO has less shares outstanding
The number of shares outstanding for PDCO has been reduced compared to 5 years ago.
PDCO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.03 indicates that PDCO is not in any danger for bankruptcy at the moment.
PDCO has a better Altman-Z score (4.03) than 76.64% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that PDCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, PDCO is in line with its industry, outperforming 57.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.03 |
ROIC/WACC1.21
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.37 indicates that PDCO should not have too much problems paying its short term obligations.
The Current ratio of PDCO (1.37) is comparable to the rest of the industry.
A Quick Ratio of 0.76 indicates that PDCO may have some problems paying its short term obligations.
PDCO's Quick ratio of 0.76 is on the low side compared to the rest of the industry. PDCO is outperformed by 82.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for PDCO have decreased strongly by -10.17% in the last year.
Measured over the past years, PDCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.53% on average per year.
The Revenue has been growing slightly by 0.05% in the past year.
The Revenue has been growing slightly by 3.34% on average over the past years.
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
Based on estimates for the next years, PDCO will show a small growth in Earnings Per Share. The EPS will grow by 6.19% on average per year.
Based on estimates for the next years, PDCO will show a small growth in Revenue. The Revenue will grow by 2.70% on average per year.
EPS Next Y-0.87%
EPS Next 2Y3.7%
EPS Next 3Y5.11%
EPS Next 5Y6.19%
Revenue Next Year0.9%
Revenue Next 2Y1.88%
Revenue Next 3Y2.5%
Revenue Next 5Y2.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 14.66, PDCO is valued correctly.
Based on the Price/Earnings ratio, PDCO is valued cheaper than 81.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. PDCO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.51, which indicates a correct valuation of PDCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PDCO indicates a rather cheap valuation: PDCO is cheaper than 83.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, PDCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
PDCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PDCO is cheaper than 78.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.61 |
4.3 Compensation for Growth
PDCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y3.7%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.35%, PDCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.95, PDCO pays a better dividend. On top of this PDCO pays more dividend than 95.33% of the companies listed in the same industry.
PDCO's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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.
PDCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.7%
EPS Next 2Y3.7%
EPS Next 3Y5.11%
31.07
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.4%
Inst Owner Change1.74%
Ins Owners0.98%
Ins Owner Change2.46%
Market Cap2.74B
Analysts69.47
Price Target30.44 (-2.03%)
Short Float %2.9%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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)-15.97%
Min EPS beat(2)-26.41%
Max EPS beat(2)-5.54%
EPS beat(4)0
Avg EPS beat(4)-9.42%
Min EPS beat(4)-26.41%
Max EPS beat(4)-2.48%
EPS beat(8)2
Avg EPS beat(8)-4.61%
EPS beat(12)5
Avg EPS beat(12)-0.95%
EPS beat(16)8
Avg EPS beat(16)-0.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-5.01%
Max Revenue beat(2)-0.69%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-5.01%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)2
Avg Revenue beat(12)-2.31%
Revenue beat(16)6
Avg Revenue beat(16)-0.91%
PT rev (1m)2.13%
PT rev (3m)13.32%
EPS NQ rev (1m)-5.88%
EPS NQ rev (3m)6.7%
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-3.19%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 12.51 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.85 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)2.12
EY6.82%
EPS(NY)2.48
Fwd EY8%
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 | 4.03 |
F-Score4
WACC8.21%
ROIC/WACC1.21
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 Y-0.87%
EPS Next 2Y3.7%
EPS Next 3Y5.11%
EPS Next 5Y6.19%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y3.57%
Revenue growth 5Y3.34%
Sales Q2Q%1.31%
Revenue Next Year0.9%
Revenue Next 2Y1.88%
Revenue Next 3Y2.5%
Revenue Next 5Y2.7%
EBIT growth 1Y-18.58%
EBIT growth 3Y6.29%
EBIT growth 5Y12.93%
EBIT Next Year9.92%
EBIT Next 3Y7.09%
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