Patterson Companies, Inc. Fundamental Analysis
Patterson Companies, Inc. (PDCO) shows weak financial fundamentals with a PE ratio of 15.67, profit margin of 2.83%, and ROE of 17.54%. The company generates $6.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PDCO's fundamental strength across five key dimensions:
Efficiency Score
WeakPDCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPDCO trades at attractive valuation levels.
Growth Score
ModeratePDCO shows steady but slowing expansion.
Financial Health Score
ExcellentPDCO maintains a strong and stable balance sheet.
Profitability Score
WeakPDCO struggles to sustain strong margins.
Key Financial Metrics
Is PDCO Expensive or Cheap?
P/E Ratio
PDCO trades at 15.67 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PDCO's PEG of -0.34 indicates potential undervaluation.
Price to Book
The market values Patterson Companies, Inc. at 2.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.67 times EBITDA. This is generally considered low.
How Well Does PDCO Make Money?
Net Profit Margin
For every $100 in sales, Patterson Companies, Inc. keeps $2.83 as profit after all expenses.
Operating Margin
Core operations generate 3.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.54 in profit for every $100 of shareholder equity.
ROA
Patterson Companies, Inc. generates $6.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Patterson Companies, Inc. generates limited operating cash flow of $-751.21M, signaling weaker underlying cash strength.
Free Cash Flow
Patterson Companies, Inc. generates weak or negative free cash flow of $-815.57M, restricting financial flexibility.
FCF Per Share
Each share generates $-9.22 in free cash annually.
FCF Yield
PDCO converts -30.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How PDCO Stacks Against Its Sector Peers
| Metric | PDCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.67 | 29.03 | Better (Cheaper) |
| ROE | 17.54% | 773.00% | Weak |
| Net Margin | 2.83% | -53616.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.50 | Weak (High Leverage) |
| Current Ratio | 1.33 | 4.44 | Neutral |
| ROA | 6.42% | -20231.00% (disorted) | Weak |
PDCO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Patterson Companies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation