3.46%
-22.80%
-51.98%
-13.31%
0.00%
-85.64%
-91.36%

Company Description

Petco Health and Wellness Company, Inc., a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners.The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics.It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites.


As of March 23, 2022, the company operated approximately 1,500 Petco locations in the United States, Mexico, and Puerto Rico that included a network of approximately 200 in-store veterinary hospitals.Petco Health and Wellness Company, Inc.was founded in 1965 and is headquartered in San Diego, California.

Market Data

Last Price 2.54
Change Percentage 3.46%
Open 2.44
Previous Close 2.46
Market Cap ( Millions) 700
Volume 2972296
Year High 6.29
Year Low 1.41
M A 50 3.5
M A 200 3.76

Financial Ratios

FCF Yield 13.25%
Dividend Yield 0.00%
ROE -9.61%
Debt / Equity 125.58%
Net Debt / EBIDTA 637.68%
Price To Book 0.62
Price Earnings Ratio -6.31
Price To FCF 7.55
Price To sales 0.11
EV / EBITDA 9.83

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Consumables

Expected Growth : 2.5 %

What the company do ?

Consumables from Petco Health and Wellness Company, Inc. refer to pet food, treats, and supplements that are essential for the daily care and nutrition of pets.

Why we expect these perspectives ?

Petco's consumables segment growth of 2.5% is driven by increasing pet humanization, premiumization of pet food, and rising demand for natural and organic products. Additionally, the company's omnichannel strategy, loyalty programs, and partnerships with pet food manufacturers contribute to the growth.

Segment nΒ°2 -> Supplies and Companion Animals

Expected Growth : 1.8 %

What the company do ?

Petco's Supplies and Companion Animals segment offers pet food, toys, and accessories, as well as services like pet grooming and veterinary care.

Why we expect these perspectives ?

Petco's Supplies and Companion Animals segment growth of 1.8% is driven by increasing pet humanization, rising disposable income, and growing demand for premium and natural pet food. Additionally, the company's omnichannel strategy, loyalty programs, and expanding veterinary services contribute to the segment's growth.

Segment nΒ°3 -> Services and Other

Expected Growth : 2.2 %

What the company do ?

Petco Health and Wellness Company, Inc.'s Services and Other segment includes pet grooming, pet training, and veterinary services, as well as sales of pet food and supplies.

Why we expect these perspectives ?

Petco's Services and Other segment growth of 2.2% is driven by increasing demand for pet grooming and training services, expansion of veterinary services, and growth in pet insurance offerings. Additionally, the company's focus on digital transformation, including online booking and telehealth services, has contributed to the segment's growth.

Petco Health And Wellness Company, Inc. Products

Product Range What is it ?
Pet Food and Treats Petco offers a wide range of high-quality pet food and treats from popular brands, catering to different life stages, breeds, and dietary needs.
Pet Grooming and Hygiene Petco offers a range of pet grooming and hygiene products, including shampoos, conditioners, brushes, and dental care products.
Pet Health and Wellness Petco offers a range of pet health and wellness products, including supplements, vitamins, and medications.
Pet Accessories and Toys Petco offers a wide range of pet accessories and toys, including collars, leashes, beds, and interactive toys.
Pet Services Petco offers a range of pet services, including veterinary care, grooming, and training.
Pet Insurance Petco offers pet insurance plans to help pet owners cover unexpected veterinary expenses.

Petco Health and Wellness Company, Inc.'s Porter Forces

Pet owners have some flexibility to choose alternative pet care services, but Petco's strong brand recognition and loyalty programs help to mitigate this threat.

Pet owners have some bargaining power due to the availability of online retailers and other pet care services, but Petco's wide range of products and services helps to maintain customer loyalty.

Petco relies on a diverse range of suppliers for its products, which reduces the bargaining power of individual suppliers. However, suppliers of popular pet food brands may have some bargaining power.

While new entrants may emerge in the pet care industry, Petco's established brand and extensive store network create barriers to entry.

The pet care industry is highly competitive, with many retailers and online platforms competing for market share. Petco must continually innovate and improve its offerings to maintain its market position.

Capital Structure

Value
Debt Weight 61.63%
Debt Cost 5.09%
Equity Weight 38.37%
Equity Cost 10.30%
WACC 7.09%
Leverage 160.64%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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BNED Barnes & Noble Education, Inc. operates bookstores for college and university campuses, and K-12 institutions in the United States. It operates through three segments: Retail, Wholesale, and Digital Student Solutions. …
SPWH Sportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States. It offers camping products, such as backpacks, camp essentials, canoes and …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
2.54$
Current Price
2.54$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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