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1. Company Snapshot

1.a. Company Description

PetIQ, Inc.operates as a pet medication and wellness company in the United States and internationally.It operates in two segments, Products and Services.


The company offers Rx pet medications, which include flea and tick control, heartworm preventatives, arthritis, thyroid, diabetes and pain treatments, antibiotics, and other specialty medications; and develops and manufactures its own proprietary value-branded products, as well as distributes third-party branded medications.It also provides OTC medications and supplies primarily within the flea and tick control, and behavior management categories of the health and wellness industry in various forms, such as spot on (topical) treatments, chewables, oral tablets, and collars.In addition, the company offers health and wellness products that include dental treats and nutritional supplements, which comprise hip and joint, vitamins, and skin and coat products.


The company provides its products primarily under the PetIQ, PetArmor, VIP Petcare, VetIQ PetCare, VetIQ, Capstar, Advecta, SENTRY, Sergeants, PetLock, Heart Shield Plus, TruProfen, Betsy Farms, PetAction, Minties, Vera, and Delightibles brands.In addition, the company offers a suite of services at 2,900 community clinics and wellness centers hosted at pet retailers across 42 states, including diagnostic tests, vaccinations, prescription medications, microchipping, and wellness checks.It operates through approximately 60,000 points of distribution across veterinarian, retail, and e-commerce channels.


The company was founded in 2010 and is headquartered in Eagle, Idaho.

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1.b. Last Insights on PETQ

PetIQ, Inc.'s recent performance was driven by the successful completion of its acquisition by Bansk Group, a consumer-focused private investment firm, in an all-cash transaction valued at approximately $1.5 billion. This strategic partnership is expected to provide PetIQ with the necessary resources to accelerate its growth and expand its presence in the pet medication, health, and wellness market. The merger agreement was approved by stockholders, and the closing date was anticipated to be October 25, 2024.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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PetIQ, Inc. Announces Successful Completion of Acquisition by Bansk Group

Oct -25

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PetIQ, Inc. Announces Results of Special Meeting of Stockholders

Oct -22

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SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Mergers and Upcoming Votes of PETQ and FBMS

Oct -09

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STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates the Mergers and Imminent Votes of PETQ and FBMS

Oct -08

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STOCKHOLDER ALERT: The M&A Class Action Firm Investigates the Mergers and Imminent Votes of PETQ and FBMS

Oct -07

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Fast-paced Momentum Stock PetIQ (PETQ) Is Still Trading at a Bargain

Sep -20

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PetIQ (PETQ) Upgraded to Strong Buy: What Does It Mean for the Stock?

Sep -13

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PetIQ, Inc. (PETQ) Hits Fresh High: Is There Still Room to Run?

Sep -12

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.38%)

6. Segments

Products

Expected Growth: 4.5%

PetIQ's 4.5% growth is driven by increasing pet humanization, rising pet ownership, and growing demand for convenient and affordable pet health and wellness products. The company's expanding product portfolio, including flea and tick prevention, heartworm prevention, and dental care, also contributes to its growth. Additionally, PetIQ's strategic partnerships with retailers and veterinarians enhance its distribution channels and drive sales.

Services

Expected Growth: 3.5%

PetIQ's 3.5% growth is driven by increasing pet humanization, rising pet ownership, and growing demand for convenient and affordable pet health services. Expansion of veterinary clinics, online platforms, and partnerships with retailers also contribute to growth. Additionally, the company's focus on preventative care and wellness products resonates with pet owners, further fueling growth.

7. Detailed Products

VetIQ

A veterinary wellness program that provides preventative care services and products to pets

VIP Petcare

A community clinic program that offers affordable veterinary care services and products

PetIQ Products

A line of pet health and wellness products, including supplements, shampoos, and flea and tick preventatives

VetGuard

A line of flea, tick, and heartworm preventatives

Pulse4Pets

A line of pet health supplements and vitamins

8. PetIQ, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

PetIQ, Inc. operates in a niche market, providing pet health and wellness products, which reduces the threat of substitutes. However, the company still faces competition from traditional pet food and supplies.

Bargaining Power Of Customers

Pet owners, the primary customers of PetIQ, Inc., have limited bargaining power due to the company's strong brand presence and diversified product offerings.

Bargaining Power Of Suppliers

PetIQ, Inc. relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company still faces some pressure from suppliers of key ingredients and materials.

Threat Of New Entrants

The pet health and wellness industry has moderate barriers to entry, including regulatory hurdles and the need for significant investment in research and development, which reduces the threat of new entrants.

Intensity Of Rivalry

The pet health and wellness industry is highly competitive, with several established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 67.24%
Debt Cost 6.87%
Equity Weight 32.76%
Equity Cost 12.33%
WACC 8.66%
Leverage 205.24%

11. Quality Control: PetIQ, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Supernus Pharmaceuticals

A-Score: 5.3/10

Value: 2.6

Growth: 6.0

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Amphastar Pharmaceuticals

A-Score: 4.8/10

Value: 7.1

Growth: 8.8

Quality: 8.0

Yield: 0.0

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Journey Medical

A-Score: 4.0/10

Value: 6.6

Growth: 3.3

Quality: 4.3

Yield: 0.0

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

Stock-Card
PetIQ

A-Score: 3.5/10

Value: 3.6

Growth: 7.8

Quality: 3.1

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

Stock-Card
Aytu BioPharma

A-Score: 3.4/10

Value: 9.6

Growth: 4.8

Quality: 4.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

Stock-Card
Alimera Sciences

A-Score: 2.5/10

Value: 2.4

Growth: 4.7

Quality: 2.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.98$

Current Price

30.98$

Potential

-0.00%

Expected Cash-Flows