PETIQ INC (PETQ)
US71639T1060 - Common Stock
We assign a fundamental rating of 5 out of 10 to PETQ. PETQ was compared to 114 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
In the past year PETQ was profitable.
In the past year PETQ had a positive cash flow from operations.
PETQ had negative earnings in 4 of the past 5 years.
PETQ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.48%, PETQ is doing good in the industry, outperforming 63.16% of the companies in the same industry.
PETQ has a Return On Equity of 5.13%. This is in the better half of the industry: PETQ outperforms 70.18% of its industry peers.
PETQ has a Return On Invested Capital of 7.96%. This is amongst the best in the industry. PETQ outperforms 80.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PETQ is below the industry average of 7.77%.
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
With a decent Profit Margin value of 1.17%, PETQ is doing good in the industry, outperforming 64.91% of the companies in the same industry.
With a decent Operating Margin value of 6.32%, PETQ is doing good in the industry, outperforming 71.05% 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 51.75% 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.
PETQ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PETQ has more shares outstanding
The debt/assets ratio for PETQ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.58 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 2.58. This is in the better half of the industry: PETQ outperforms 62.28% 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.
The Debt to FCF ratio of PETQ (36.99) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that PETQ has dependencies on debt financing.
With a Debt to Equity ratio value of 1.69, PETQ is not doing good in the industry: 71.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 36.99 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.12
WACC7.13%
2.3 Liquidity
A Current Ratio of 2.58 indicates that PETQ has no problem at all paying its short term obligations.
PETQ's Current ratio of 2.58 is amongst the best of the industry. PETQ outperforms 82.46% of its industry peers.
A Quick Ratio of 1.68 indicates that PETQ should not have too much problems paying its short term obligations.
The Quick ratio of PETQ (1.68) is better than 66.67% 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.
Measured over the past 5 years, PETQ shows a small growth in Earnings Per Share. The EPS has been growing by 7.07% on average per year.
The Revenue has grown by 13.57% in the past year. This is quite good.
Measured over the past years, PETQ shows a quite strong growth in Revenue. The Revenue has been growing by 15.83% on average per year.
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
Based on estimates for the next years, PETQ will show a very strong growth in Earnings Per Share. The EPS will grow by 20.07% on average per year.
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
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
With a Price/Earnings ratio of 19.48, PETQ is valued on the expensive side.
Based on the Price/Earnings ratio, PETQ is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 30.45, PETQ is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.19, which indicates a correct valuation of PETQ.
PETQ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PETQ is cheaper than 77.19% of the companies in the same industry.
PETQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PETQ indicates a somewhat cheap valuation: PETQ is cheaper than 75.44% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PETQ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.76 | ||
| EV/EBITDA | 11.39 |
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.
The decent profitability rating of PETQ 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)0.57
PEG (5Y)2.76
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 |
PETIQ INC
NASDAQ:PETQ (9/18/2024, 8:21:38 PM)
After market: 30.78 0 (0%)30.78
+0.02 (+0.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap920.01M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 16.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
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PEG (NY)0.57
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 5.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.32% | ||
| PM (TTM) | 1.17% | ||
| GM | 24.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)64.58%
EPS 3Y20.01%
EPS 5Y
EPS Q2Q%
EPS Next Y34.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.57%
Revenue growth 3Y12.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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