ScoreWhy is Petco Health & Wellness Company, Inc. ?
1
Poor Management Efficiency with a low ROCE of 4.31%
- The company has been able to generate a Return on Capital Employed (avg) of 4.31% signifying low profitability per unit of total capital (equity and debt)
2
Healthy long term growth as Net Sales has grown by an annual rate of 11.69% and Operating profit at -6.38%
3
Positive results in Jul 25
- INVENTORY TURNOVER RATIO(HY) Highest at 6.13 times
- INTEREST COVERAGE RATIO(Q) Highest at 282.74
- RAW MATERIAL COST(Y) Fallen by -3.43% (YoY)
4
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -27.93%, its profits have risen by 14.7%
5
High Institutional Holdings at 86%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Below par performance in long term as well as near term
- Along with generating -27.93% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Petco Health & Wellness Company, Inc. should be less than 10%
- Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Petco Health & Wellness Company, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Petco Health & Wellness Company, Inc.
-100.0%
-0.25
82.69%
S&P 500
13.02%
0.81
19.85%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.69%
EBIT Growth (5y)
-6.38%
EBIT to Interest (avg)
1.48
Debt to EBITDA (avg)
3.98
Net Debt to Equity (avg)
1.58
Sales to Capital Employed (avg)
1.96
Tax Ratio
2.85%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
78.55%
ROCE (avg)
4.31%
ROE (avg)
2.36%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.69
EV to EBIT
40.06
EV to EBITDA
9.62
EV to Capital Employed
0.88
EV to Sales
0.42
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.20%
ROE (Latest)
-4.66%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 6.13 times
INTEREST COVERAGE RATIO(Q)
Highest at 282.74
RAW MATERIAL COST(Y)
Fallen by -3.43% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 148.25 times
OPERATING PROFIT(Q)
Highest at USD 94.71 MM
OPERATING PROFIT MARGIN(Q)
Highest at 6.36 %
PRE-TAX PROFIT(Q)
Highest at USD 13.04 MM
NET PROFIT(Q)
Highest at USD 16.21 MM
EPS(Q)
Highest at USD 0.05
-1What is not working for the Company
NET SALES(Q)
Lowest at USD 1,488.53 MM
Here's what is working for Petco Health & Wellness Company, Inc.
Net Profit
At USD 16.21 MM has Grown at 205.92%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Interest Coverage Ratio
Highest at 282.74
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At USD 13.04 MM has Grown at 154.01%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Inventory Turnover Ratio
Highest at 6.13 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Operating Profit
Highest at USD 94.71 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 6.36 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 13.04 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 16.21 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.05
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 148.25 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.43% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Petco Health & Wellness Company, Inc.
Net Sales
Lowest at USD 1,488.53 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Non Operating Income
Highest at USD 0.1 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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