Petco Health and Wellness Company, Inc. Fundamental Analysis
Petco Health and Wellness Company, Inc. Fundamental Analysis
Petco Health and Wellness Company, Inc. (WOOF) shows weak financial fundamentals with a PE ratio of 91.05, profit margin of 0.15%, and ROE of 0.79%. The company generates $6.8B in annual revenue with weak year-over-year growth of -2.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 3.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WOOF's fundamental strength across five key dimensions:
Efficiency Score
WeakWOOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateWOOF shows balanced valuation metrics.
Growth Score
WeakWOOF faces weak or negative growth trends.
Financial Health Score
WeakWOOF carries high financial risk with limited liquidity.
Profitability Score
ModerateWOOF maintains healthy but balanced margins.
Key Financial Metrics
Is WOOF Expensive or Cheap?
P/E Ratio
WOOF trades at 91.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WOOF's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Petco Health and Wellness Company, Inc. at 0.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.16 times EBITDA. This is generally considered low.
How Well Does WOOF Make Money?
Net Profit Margin
For every $100 in sales, Petco Health and Wellness Company, Inc. keeps $0.15 as profit after all expenses.
Operating Margin
Core operations generate 2.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.79 in profit for every $100 of shareholder equity.
ROA
Petco Health and Wellness Company, Inc. generates $0.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Petco Health and Wellness Company, Inc. generates limited operating cash flow of $410.50M, signaling weaker underlying cash strength.
Free Cash Flow
Petco Health and Wellness Company, Inc. produces free cash flow of $264.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
WOOF converts 24.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
91.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How WOOF Stacks Against Its Sector Peers
| Metric | WOOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 91.05 | 24.20 | Worse (Expensive) |
| ROE | 0.48% | 1170.00% | Weak |
| Net Margin | 0.15% | 2530.00% | Weak |
| Debt/Equity | 2.41 | 0.72 | Weak (High Leverage) |
| Current Ratio | 0.90 | 2.82 | Weak Liquidity |
| ROA | 0.18% | -8380.00% (disorted) | Weak |
WOOF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Petco Health and Wellness Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-11.71%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
124.95%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-14.80%
Industry Style: Cyclical, Growth, Discretionary
Declining