We assign a fundamental rating of 5 out of 10 to PETQ. PETQ was compared to 103 industry peers in the Health Care Providers & Services industry. PETQ has an average financial health and profitability rating. PETQ is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year PETQ was profitable.
PETQ had a positive operating cash flow in the past year.
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 has a Return On Assets of 1.48%. This is in the better half of the industry: PETQ outperforms 61.74% of its industry peers.
PETQ has a Return On Equity of 5.13%. This is in the better half of the industry: PETQ outperforms 67.83% of its industry peers.
PETQ has a Return On Invested Capital of 7.96%. This is amongst the best in the industry. PETQ outperforms 80.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PETQ is below the industry average of 9.16%.
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.
PETQ's Operating Margin of 6.32% is fine compared to the rest of the industry. PETQ outperforms 70.43% of its industry peers.
PETQ's Operating Margin has improved in the last couple of years.
PETQ has a Gross Margin (24.63%) which is comparable to the rest of the 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for PETQ has been increased compared to 1 year 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.
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.
PETQ has a Debt to Equity ratio of 1.69. This is in the lower half of the industry: PETQ underperforms 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.
PETQ has a Current ratio of 2.58. This is amongst the best in the industry. PETQ outperforms 82.61% of its industry peers.
A Quick Ratio of 1.68 indicates that PETQ should not have too much problems paying its short term obligations.
PETQ has a Quick ratio of 1.68. This is in the better half of the industry: PETQ outperforms 66.09% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.58
Quick Ratio	1.68

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WACC

Debt/Equity

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Altman-Z score

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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.
PETQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.57%.
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

PETQ is valuated rather expensively with a Price/Earnings ratio of 19.61.
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.
PETQ is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.30 indicates a correct valuation of PETQ.
Based on the Price/Forward Earnings ratio, PETQ is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
PETQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		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.
PETQ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PETQ is cheaper than 60.87% of the companies 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.
PETQ's earnings are expected to grow with 23.23% in the coming years. This may justify a more expensive valuation.