PETIQ INC (PETQ) Stock Fundamental Analysis
NASDAQ:PETQ - Nasdaq - US71639T1060 - Common Stock - Currency: USD
PETQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 industry peers in the Health Care Providers & Services industry. PETQ has only an average score on both its financial health and profitability. PETQ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PETQ had positive earnings in the past year.
In the past year PETQ had a positive cash flow from operations.
In the past 5 years PETQ reported 4 times negative net income.
PETQ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PETQ's Return On Assets of 1.48% is fine compared to the rest of the industry. PETQ outperforms 61.74% of its industry peers.
Looking at the Return On Equity, with a value of 5.13%, PETQ is in the better half of the industry, outperforming 67.83% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.96%, PETQ belongs to the best of the industry, outperforming 80.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PETQ is below the industry average of 8.14%.
The 3 year average ROIC (4.51%) for PETQ is below the current ROIC(7.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.13% | ||
| ROIC | 7.96% |
ROA(3y)-2.53%
ROA(5y)-4%
ROE(3y)-9.44%
ROE(5y)-13.98%
ROIC(3y)4.51%
ROIC(5y)N/A
1.3 Margins
PETQ has a Profit Margin of 1.17%. This is in the better half of the industry: PETQ outperforms 64.35% of its industry peers.
Looking at the Operating Margin, with a value of 6.32%, PETQ is in the better half of the industry, outperforming 70.43% of the companies in the same industry.
PETQ's Operating Margin has improved in the last couple of years.
PETQ has a Gross Margin of 24.63%. This is comparable to the rest of the industry: PETQ outperforms 52.17% of its industry peers.
In the last couple of years the Gross Margin of PETQ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.32% | ||
| PM (TTM) | 1.17% | ||
| GM | 24.63% |
OM growth 3YN/A
OM growth 5Y28.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.79%
GM growth 5Y7.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PETQ is creating some value.
The number of shares outstanding for PETQ has been increased compared to 1 year ago.
The number of shares outstanding for PETQ has been increased compared to 5 years ago.
PETQ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.60 indicates that PETQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
PETQ has a Altman-Z score of 2.60. This is in the better half of the industry: PETQ outperforms 66.09% of its industry peers.
The Debt to FCF ratio of PETQ is 36.99, which is on the high side as it means it would take PETQ, 36.99 years of fcf income to pay off all of its debts.
PETQ has a Debt to FCF ratio of 36.99. This is comparable to the rest of the industry: PETQ outperforms 54.78% of its industry peers.
PETQ has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.69, PETQ is doing worse than 73.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 36.99 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.05
WACC7.57%
2.3 Liquidity
PETQ has a Current Ratio of 2.58. This indicates that PETQ is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PETQ (2.58) is better than 82.61% of its industry peers.
PETQ has a Quick Ratio of 1.68. This is a normal value and indicates that PETQ is financially healthy and should not expect problems in meeting its short term obligations.
PETQ's Quick ratio of 1.68 is fine compared to the rest of the industry. PETQ outperforms 66.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
PETQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.58%, which is quite impressive.
PETQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.07% yearly.
The Revenue has grown by 13.57% in the past year. This is quite good.
The Revenue has been growing by 15.83% on average over the past years. This is quite good.
EPS 1Y (TTM)64.58%
EPS 3Y20.01%
EPS 5Y7.07%
EPS Q2Q%52.17%
Revenue 1Y (TTM)13.57%
Revenue growth 3Y12.2%
Revenue growth 5Y15.83%
Sales Q2Q%4.58%
3.2 Future
The Earnings Per Share is expected to grow by 20.07% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.21% on average over the next years.
EPS Next Y34.03%
EPS Next 2Y25.33%
EPS Next 3Y23.23%
EPS Next 5Y20.07%
Revenue Next Year8.33%
Revenue Next 2Y6.86%
Revenue Next 3Y7.06%
Revenue Next 5Y6.21%
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 accelerating.
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
Based on the Price/Earnings ratio of 19.61, the valuation of PETQ can be described as rather expensive.
PETQ's Price/Earnings ratio is a bit cheaper when compared to the industry. PETQ is cheaper than 73.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PETQ is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.30, the valuation of PETQ can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PETQ indicates a somewhat cheap valuation: PETQ is cheaper than 73.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PETQ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
PETQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PETQ is cheaper than 73.04% of the companies in the same industry.
60.87% of the companies in the same industry are more expensive than PETQ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.88 | ||
| EV/EBITDA | 11.52 |
4.3 Compensation for Growth
PETQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PETQ has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PETQ's earnings are expected to grow with 23.23% in the coming years.
PEG (NY)0.58
PEG (5Y)2.77
EPS Next 2Y25.33%
EPS Next 3Y23.23%
5. Dividend
5.1 Amount
No dividends for PETQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.98
-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 Owners99.11%
Inst Owner Change-94.42%
Ins Owners0.82%
Ins Owner Change-142.85%
Market Cap933.43M
Analysts76.36
Price Target31.11 (0.42%)
Short Float %N/A
Short RatioN/A
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)35.83%
Min EPS beat(2)33.29%
Max EPS beat(2)38.36%
EPS beat(4)4
Avg EPS beat(4)596.09%
Min EPS beat(4)33.29%
Max EPS beat(4)2252.94%
EPS beat(8)7
Avg EPS beat(8)329.26%
EPS beat(12)9
Avg EPS beat(12)214.99%
EPS beat(16)11
Avg EPS beat(16)161.03%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)0.63%
Revenue beat(4)3
Avg Revenue beat(4)7.73%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)18.56%
Revenue beat(8)6
Avg Revenue beat(8)5.08%
Revenue beat(12)9
Avg Revenue beat(12)4.61%
Revenue beat(16)11
Avg Revenue beat(16)4.38%
PT rev (1m)0%
PT rev (3m)5.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.9%
EPS NY rev (1m)0%
EPS NY rev (3m)8.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 16.3 | ||
| P/S | 0.82 | ||
| P/FCF | 77.88 | ||
| P/OCF | 46.16 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.52 |
EPS(TTM)1.58
EY5.1%
EPS(NY)1.9
Fwd EY6.13%
FCF(TTM)0.4
FCFY1.28%
OCF(TTM)0.67
OCFY2.17%
SpS37.65
BVpS8.56
TBVpS-3.09
PEG (NY)0.58
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.13% | ||
| ROCE | 10.07% | ||
| ROIC | 7.96% | ||
| ROICexc | 9.02% | ||
| ROICexgc | 20.48% | ||
| OM | 6.32% | ||
| PM (TTM) | 1.17% | ||
| GM | 24.63% | ||
| FCFM | 1.06% |
ROA(3y)-2.53%
ROA(5y)-4%
ROE(3y)-9.44%
ROE(5y)-13.98%
ROIC(3y)4.51%
ROIC(5y)N/A
ROICexc(3y)5.32%
ROICexc(5y)N/A
ROICexgc(3y)14.77%
ROICexgc(5y)N/A
ROCE(3y)5.71%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y40.46%
ROICexc growth 3YN/A
ROICexc growth 5Y36.64%
OM growth 3YN/A
OM growth 5Y28.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.79%
GM growth 5Y7.79%
F-Score8
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 36.99 | ||
| Debt/EBITDA | 3.89 | ||
| Cap/Depr | 20.3% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 18.01% | ||
| Profit Quality | 90.51% | ||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 2.6 |
F-Score8
WACC7.57%
ROIC/WACC1.05
Cap/Depr(3y)44.62%
Cap/Depr(5y)115.7%
Cap/Sales(3y)1.83%
Cap/Sales(5y)4.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.58%
EPS 3Y20.01%
EPS 5Y7.07%
EPS Q2Q%52.17%
EPS Next Y34.03%
EPS Next 2Y25.33%
EPS Next 3Y23.23%
EPS Next 5Y20.07%
Revenue 1Y (TTM)13.57%
Revenue growth 3Y12.2%
Revenue growth 5Y15.83%
Sales Q2Q%4.58%
Revenue Next Year8.33%
Revenue Next 2Y6.86%
Revenue Next 3Y7.06%
Revenue Next 5Y6.21%
EBIT growth 1Y62.93%
EBIT growth 3YN/A
EBIT growth 5Y48.99%
EBIT Next Year95.79%
EBIT Next 3Y33.01%
EBIT Next 5Y22.34%
FCF growth 1Y173.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y340.55%
OCF growth 3YN/A
OCF growth 5YN/A