Petco Health & Wellness Company, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Petco Health & Wellness Company, Inc. ?

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)

Healthy long term growth as Net Sales has grown by an annual rate of 3.91% and Operating profit at -7.10%

With a growth in Net Profit of 29.89%, the company declared Very Positive results in Apr 26

The company has declared positive results for the last 5 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 268.98 MM
NET PROFIT(Q) At USD 11.01 MM has Grown at 245.71%
ROCE(HY) Highest at 0.49%

With ROCE of 4.97%, it has a attractive valuation with a 0.85 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.82%, its profits have risen by 134.3% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 76.11%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How 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.

7.82%

-0.36

76.89%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.91%

EBIT Growth (5y)

-7.10%

EBIT to Interest (avg)

1.48

Debt to EBITDA (avg)

3.98

Net Debt to Equity (avg)

1.58

Sales to Capital Employed (avg)

2.02

Tax Ratio

2.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

76.11%

ROCE (avg)

4.31%

ROE (avg)

2.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.66

EV to EBIT

17.18

EV to EBITDA

6.99

EV to Capital Employed

0.85

EV to Sales

0.39

PEG Ratio

0.24

Dividend Yield

ROCE (Latest)

4.97%

ROE (Latest)

2.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 268.98 MM

NET PROFIT(Q)

At USD 11.01 MM has Grown at 245.71%

ROCE(HY)

Highest at 0.49%

PRE-TAX PROFIT(Q)

At USD 7.65 MM has Grown at 165.57%

RAW MATERIAL COST(Y)

Fallen by -10.4% (YoY

CASH AND EQV(HY)

Highest at USD 437.37 MM

DEBT-EQUITY RATIO (HY)

Lowest at 226.52 %

DEBTORS TURNOVER RATIO(HY)

Highest at 163.4 times

-5What is not working for the Company

NET PROFIT(HY)

At USD -27.75 MM has Grown at -115.96%

EPS(Q)

Lowest at USD -0.05

Here's what is working for Petco Health & Wellness Company, Inc.

Net Profit

At USD 11.01 MM has Grown at 245.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 268.98 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 7.65 MM has Grown at 165.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Cash and Eqv

Highest at USD 437.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 226.52 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 163.4 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -10.4% (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.

EPS

Lowest at USD -0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)