Pet Valu Holdings Ltd. Fundamental Analysis (TSX: PET.TO)
Pet Valu Holdings Ltd. Fundamental Analysis (TSX: PET.TO)
Pet Valu Holdings Ltd. (TSX: PET.TO) shows moderate financial fundamentals with a PE ratio of 13.23, profit margin of 8.31%, and ROE of 1.10%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 7.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PET.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakPET.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPET.TO trades at attractive valuation levels.
Growth Score
ExcellentPET.TO delivers strong and consistent growth momentum.
Financial Health Score
ModeratePET.TO shows balanced financial health with some risks.
Profitability Score
ModeratePET.TO maintains healthy but balanced margins.
Key Financial Metrics
Is PET.TO Expensive or Cheap?
P/E Ratio
PET.TO trades at 13.23 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PET.TO's PEG of 2.00 indicates fair valuation.
Price to Book
The market values Pet Valu Holdings Ltd. at 14.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.95 times EBITDA. This is generally considered low.
How Well Does PET.TO Make Money?
Net Profit Margin
For every $100 in sales, Pet Valu Holdings Ltd. keeps $8.31 as profit after all expenses.
Operating Margin
Core operations generate 15.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.10 in profit for every $100 of shareholder equity.
ROA
Pet Valu Holdings Ltd. generates $9.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pet Valu Holdings Ltd. produces operating cash flow of $192.36M, showing steady but balanced cash generation.
Free Cash Flow
Pet Valu Holdings Ltd. generates strong free cash flow of $146.33M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.15 in free cash annually.
FCF Yield
PET.TO converts 11.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.10
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How PET.TO Stacks Against Its Sector Peers
| Metric | PET.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.23 | 25.81 | Better (Cheaper) |
| ROE | 110.16% | 973.00% | Weak |
| Net Margin | 8.31% | -4892.00% (disorted) | Weak |
| Debt/Equity | 8.93 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.29 | 2.32 | Neutral |
| ROA | 9.51% | 299.00% | Weak |
PET.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pet Valu Holdings Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.72%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
234.98%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
28.18%
Industry Style: Cyclical, Growth, Discretionary
High Growth