PetIQ, Inc.
PetIQ, Inc. Fundamental Analysis
PetIQ, Inc. (PETQ) shows weak financial fundamentals with a PE ratio of 423.56, profit margin of 0.19%, and ROE of 0.99%. The company generates $1.1B 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 17.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PETQ's fundamental strength across five key dimensions:
Efficiency Score
WeakPETQ struggles to generate sufficient returns from assets.
Valuation Score
WeakPETQ trades at a premium to fair value.
Growth Score
ModeratePETQ shows steady but slowing expansion.
Financial Health Score
ModeratePETQ shows balanced financial health with some risks.
Profitability Score
ModeratePETQ maintains healthy but balanced margins.
Key Financial Metrics
Is PETQ Expensive or Cheap?
P/E Ratio
PETQ trades at 423.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PETQ's PEG of 4.24 indicates potential overvaluation.
Price to Book
The market values PetIQ, Inc. at 4.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.87 times EBITDA. This is generally considered low.
How Well Does PETQ Make Money?
Net Profit Margin
For every $100 in sales, PetIQ, Inc. keeps $0.19 as profit after all expenses.
Operating Margin
Core operations generate 5.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.99 in profit for every $100 of shareholder equity.
ROA
PetIQ, Inc. generates $0.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PetIQ, Inc. generates limited operating cash flow of $63.02M, signaling weaker underlying cash strength.
Free Cash Flow
PetIQ, Inc. produces free cash flow of $53.71M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.81 in free cash annually.
FCF Yield
PETQ converts 5.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
423.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.010
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How PETQ Stacks Against Its Sector Peers
| Metric | PETQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 423.56 | 29.43 | Worse (Expensive) |
| ROE | 0.99% | 800.00% | Weak |
| Net Margin | 0.19% | -20145.00% (disorted) | Weak |
| Debt/Equity | 2.15 | 0.30 | Weak (High Leverage) |
| Current Ratio | 2.27 | 4.64 | Strong Liquidity |
| ROA | 0.25% | -17936.00% (disorted) | Weak |
PETQ outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PetIQ, 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