PETIQ INC (PETQ) Stock Fundamental Analysis
NASDAQ:PETQ - Nasdaq - US71639T1060 - Common Stock - Currency: USD
Overall PETQ gets a fundamental rating of 5 out of 10. We evaluated PETQ against 103 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 correct valuation and a medium growth rate.
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.
PETQ had negative earnings in 4 of the past 5 years.
Of the past 5 years PETQ 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.48%, PETQ is doing good in the industry, outperforming 61.74% of the companies in the same industry.
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.
PETQ has a better Return On Invested Capital (7.96%) than 80.87% of its industry peers.
PETQ had an Average Return On Invested Capital over the past 3 years of 4.51%. This is significantly below the industry average of 9.71%.
The last Return On Invested Capital (7.96%) for PETQ is above the 3 year average (4.51%), which is a sign of increasing profitability.
| 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's Profit Margin of 1.17% is fine compared to the rest of the industry. PETQ outperforms 64.35% of its industry peers.
With a decent Operating Margin value of 6.32%, PETQ is doing good in the industry, outperforming 70.43% of the companies in the same industry.
PETQ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.63%, PETQ is in line with its industry, outperforming 52.17% of the companies in the same industry.
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
PETQ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PETQ has more shares outstanding
The number of shares outstanding for PETQ has been increased compared to 5 years ago.
The debt/assets ratio for PETQ has been reduced compared to a year ago.
2.2 Solvency
PETQ has an Altman-Z score of 2.60. This is not the best score and indicates that PETQ is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.60, PETQ is in the better half of the industry, outperforming 66.09% of the companies in the same industry.
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's Debt to FCF ratio of 36.99 is in line compared to the rest of the industry. PETQ outperforms 54.78% of its industry peers.
A Debt/Equity ratio of 1.69 is on the high side and indicates that PETQ has dependencies on debt financing.
PETQ has a worse Debt to Equity ratio (1.69) than 73.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 36.99 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.05
WACC7.57%
2.3 Liquidity
A Current Ratio of 2.58 indicates that PETQ has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.58, PETQ belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that PETQ should not have too much problems paying its short term obligations.
PETQ has a better Quick ratio (1.68) than 66.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.58% over the past year.
PETQ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.07% yearly.
Looking at the last year, PETQ shows a quite strong growth in Revenue. The Revenue has grown by 13.57% in the last year.
PETQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.83% yearly.
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
PETQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.07% yearly.
Based on estimates for the next years, PETQ will show a small growth in Revenue. The Revenue will grow by 6.21% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 19.61, which indicates a rather expensive current valuation of PETQ.
Based on the Price/Earnings ratio, PETQ is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
PETQ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 16.30, which indicates a correct valuation of PETQ.
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.
PETQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.61 | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PETQ is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PETQ indicates a somewhat cheap valuation: PETQ is cheaper than 60.87% of the companies listed in the same industry.
| 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
PETQ does not give a dividend.
| 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 Change0%
Ins Owners0.82%
Ins Owner Change0%
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