PET VALU HOLDINGS LTD (PET.CA) Stock Fundamental Analysis
TSX:PET - Toronto Stock Exchange - CA71584R1055 - Common Stock - Currency: CAD
PET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Specialty Retail industry. PET has an excellent profitability rating, but there are concerns on its financial health. PET has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PET was profitable.
In the past year PET had a positive cash flow from operations.
In the past 5 years PET has always been profitable.
Each year in the past 5 years PET had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.07%, PET belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PET's Return On Equity of 84.31% is amongst the best of the industry. PET outperforms 100.00% of its industry peers.
PET has a Return On Invested Capital of 14.55%. This is amongst the best in the industry. PET outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PET is significantly above the industry average of 6.64%.
The 3 year average ROIC (19.14%) for PET is well above the current ROIC(14.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.07% | ||
| ROE | 84.31% | ||
| ROIC | 14.55% |
ROA(3y)13.1%
ROA(5y)9.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.14%
ROIC(5y)18.74%
1.3 Margins
Looking at the Profit Margin, with a value of 8.02%, PET belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of PET has grown nicely.
PET has a better Operating Margin (14.30%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of PET has declined.
Looking at the Gross Margin, with a value of 33.33%, PET is doing worse than 64.29% of the companies in the same industry.
PET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.3% | ||
| PM (TTM) | 8.02% | ||
| GM | 33.33% |
OM growth 3Y-1.3%
OM growth 5Y-2.3%
PM growth 3Y37.4%
PM growth 5Y38.3%
GM growth 3Y-0.93%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PET is creating value.
PET has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, PET has an improved debt to assets ratio.
2.2 Solvency
PET has an Altman-Z score of 2.66. This is not the best score and indicates that PET is in the grey zone with still only limited risk for bankruptcy at the moment.
PET's Altman-Z score of 2.66 is in line compared to the rest of the industry. PET outperforms 50.00% of its industry peers.
The Debt to FCF ratio of PET is 5.89, which is a neutral value as it means it would take PET, 5.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PET (5.89) is comparable to the rest of the industry.
A Debt/Equity ratio of 6.26 is on the high side and indicates that PET has dependencies on debt financing.
PET has a Debt to Equity ratio of 6.26. This is amonst the worse of the industry: PET underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.26 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.7
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.35 indicates that PET should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, PET is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that PET may have some problems paying its short term obligations.
PET has a Quick ratio of 0.64. This is comparable to the rest of the industry: PET outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
PET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.00%, which is quite good.
Measured over the past years, PET shows a very strong growth in Earnings Per Share. The EPS has been growing by 57.70% on average per year.
Looking at the last year, PET shows a small growth in Revenue. The Revenue has grown by 5.21% in the last year.
Measured over the past years, PET shows a quite strong growth in Revenue. The Revenue has been growing by 14.80% on average per year.
EPS 1Y (TTM)12%
EPS 3Y59.83%
EPS 5Y57.7%
EPS Q2Q%5.13%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y17.65%
Revenue growth 5Y14.8%
Sales Q2Q%5.24%
3.2 Future
Based on estimates for the next years, PET will show a small growth in Earnings Per Share. The EPS will grow by 6.25% on average per year.
PET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
EPS Next Y-4.71%
EPS Next 2Y0.5%
EPS Next 3Y4.46%
EPS Next 5Y6.25%
Revenue Next Year3.76%
Revenue Next 2Y5.22%
Revenue Next 3Y5.96%
Revenue Next 5Y9.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
PET is valuated correctly with a Price/Earnings ratio of 14.83.
Based on the Price/Earnings ratio, PET is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. PET is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.32, which indicates a correct valuation of PET.
Based on the Price/Forward Earnings ratio, PET is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, PET is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PET.
Based on the Price/Free Cash Flow ratio, PET is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 11.21 |
4.3 Compensation for Growth
The excellent profitability rating of PET may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y0.5%
EPS Next 3Y4.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, PET has a reasonable but not impressive dividend return.
PET's Dividend Yield is a higher than the industry average which is at 5.05.
Compared to the average S&P500 Dividend Yield of 2.27, PET is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
PET has been paying a dividend for less than 5 years, so it still needs to build a track record.
PET has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
35.27% of the earnings are spent on dividend by PET. This is a low number and sustainable payout ratio.
DP35.27%
EPS Next 2Y0.5%
EPS Next 3Y4.46%
TSX:PET (2/21/2025, 7:00:00 PM)
24.91
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners38.95%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap1.76B
Analysts77.33
Price Target32.45 (30.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP35.27%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.82%
Min EPS beat(2)9.94%
Max EPS beat(2)17.7%
EPS beat(4)4
Avg EPS beat(4)10.71%
Min EPS beat(4)3.92%
Max EPS beat(4)17.7%
EPS beat(8)7
Avg EPS beat(8)5.41%
EPS beat(12)11
Avg EPS beat(12)9.44%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)2.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)2.05%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)7
Avg Revenue beat(12)1.92%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-3.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.13%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 15.32 | ||
| P/S | 1.62 | ||
| P/FCF | 14.15 | ||
| P/OCF | 9.41 | ||
| P/B | 17.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.21 |
EPS(TTM)1.68
EY6.74%
EPS(NY)1.63
Fwd EY6.53%
FCF(TTM)1.76
FCFY7.07%
OCF(TTM)2.65
OCFY10.63%
SpS15.37
BVpS1.46
TBVpS-0.64
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.07% | ||
| ROE | 84.31% | ||
| ROCE | 20.18% | ||
| ROIC | 14.55% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 19.11% | ||
| OM | 14.3% | ||
| PM (TTM) | 8.02% | ||
| GM | 33.33% | ||
| FCFM | 11.45% |
ROA(3y)13.1%
ROA(5y)9.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.14%
ROIC(5y)18.74%
ROICexc(3y)21.12%
ROICexc(5y)21.15%
ROICexgc(3y)29.88%
ROICexgc(5y)31.4%
ROCE(3y)26.54%
ROCE(5y)25.99%
ROICexcg growth 3Y-16.69%
ROICexcg growth 5YN/A
ROICexc growth 3Y-9.55%
ROICexc growth 5YN/A
OM growth 3Y-1.3%
OM growth 5Y-2.3%
PM growth 3Y37.4%
PM growth 5Y38.3%
GM growth 3Y-0.93%
GM growth 5Y-0.78%
F-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.26 | ||
| Debt/FCF | 5.89 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 98% | ||
| Cap/Sales | 5.77% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 85.31% | ||
| Profit Quality | 142.88% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.66 |
F-Score5
WACC8.57%
ROIC/WACC1.7
Cap/Depr(3y)108.55%
Cap/Depr(5y)85.3%
Cap/Sales(3y)4.77%
Cap/Sales(5y)3.93%
Profit Quality(3y)91.38%
Profit Quality(5y)338.9%
High Growth Momentum
Growth
EPS 1Y (TTM)12%
EPS 3Y59.83%
EPS 5Y57.7%
EPS Q2Q%5.13%
EPS Next Y-4.71%
EPS Next 2Y0.5%
EPS Next 3Y4.46%
EPS Next 5Y6.25%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y17.65%
Revenue growth 5Y14.8%
Sales Q2Q%5.24%
Revenue Next Year3.76%
Revenue Next 2Y5.22%
Revenue Next 3Y5.96%
Revenue Next 5Y9.61%
EBIT growth 1Y0.54%
EBIT growth 3Y16.11%
EBIT growth 5Y12.17%
EBIT Next Year37.75%
EBIT Next 3Y17.76%
EBIT Next 5Y15.28%
FCF growth 1Y26.72%
FCF growth 3Y-18.2%
FCF growth 5Y-5.29%
OCF growth 1Y44.63%
OCF growth 3Y-3.82%
OCF growth 5Y5.63%