PETS  Petmed Express Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Medical/Nursing Services

Market Cap.

973.05M

Vuru Grade

68.30/100

Current Price

$47.95
+7.41 (+18.28%)

Growth Price

$17.64
Overvalued by 63.22%

Stability Price

$9.41
Overvalued by 80.38%

Company Metrics

  • P/E 40.98
  • P/S 3.30
  • P/B 8.81
  • EPS 1.17
  • Cash ROIC 62.27%
  • Cash Ratio 3.20
  • Dividend 0.80 / 1.97 %
  • Avg. Vol. 624,522.00
  • Shares 20.29M
  • Market Cap. 973.05M

Company Description

PetMed Express, Inc., doing business as 1-800-PetMeds, markets non-prescription and prescription pet medications; and other health products for dogs, cats, and horses. The company's non-prescription medications include flea and tick control products, bone and joint care products, vitamins and nutritional supplements, and hygiene products. Its prescription medications comprise heartworm preventativ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why PetMed Express Inc. Stock Jumped Today
Motley Fool - 14 hours ago
PetMed Express surged past analysts' forecasts once again as revenue increased 10% to $79.7 million, topping the consensus estimate of $77.3 million.
PetMed Express Inc. (PETS) Soars 18.28% on July 24 - Equities.com
PetMed Express D/B/A 1-800-PetMeds Announces Record First Quarter Financial ... - Nasdaq
PetMed Express Inc. Reports 41% Gain In Q1 Earnings
Markets Insider - 18 hours ago
(RTTNews) - PetMed Express Inc. (PETS) revealed earnings for its first quarter that increased from last year. The company said its bottom line climbed to $9.28 million, or $0.45 per share.
PetMed Express' (PETS) CEO Mendo Akdag on Q1 2017 Results - Earnings Call ...
Seeking Alpha - 16 hours ago
Welcome to the PetMed Express, Inc. doing business as 1-800-PetMeds Conference Call to review the financial results for the First Fiscal Quarter ended on June 30, 2017.
PetMed's stock surges after profit and sales rise above expectations
MarketWatch - 18 hours ago
Shares of PetMed Express Inc. PETS, +3.98% surged 2.4% in premarket trade Monday, after the pet pharmacy company reported fiscal first-quarter profit and sales that rose above expectations.
Petmed Express Inc (PETS) Money Flow Index Levels in Focus
FLBC News - 9 hours ago
The Money Flow Index of Petmed Express Inc (PETS) this week has place the shares on the radar as it nears the key 70 or 80 level.
Analyzing Profit-Making Efficiency: PetMed Express, Inc. (PETS), Fastenal ...
USA Commerce Daily - 17 hours ago
Shares of PetMed Express, Inc. (NASDAQ:PETS) are making a strong comeback as they have jumped 114.5% since bottoming out at $18.9 on Nov. 09, 2016.
Stock Volatility Risk Alert: PetMed Express Inc Stock Volatility Hits An ...
CML News - Jul 2, 2017
Before we cover the full analysis we make a quick alert here that PetMed Express Inc (NASDAQ:PETS) has seen its stock price whip around at an escalated level.
The PetMed Express, Inc. (PETS) Position Raised by Comerica Bank - BangaloreWeekly
PetMed Express (PETS) Receives Daily Media Sentiment Rating of 0.35 - Chaffey Breeze
Session Recap: Viewing Unusual Volume for These Stocks: PetMed Express, Inc ...
Concord Register - 11 hours ago
PetMed Express, Inc. (NASDAQ:PETS) shares are seeing unusual volume mid-trading session today. While the stock price moved along with the volume change, shares are touching $47.45.
PetMed Express, Inc. (NASDAQ:PETS) Expected To Post $0.4
Concord Register - 21 hours ago
The sell-side analysts covering PetMed Express, Inc. (NASDAQ:PETS) are predicting that the firm will report earnings of $0.26 per share when the company issues their quarterly report today.
BUZZ-US STOCKS ON THE MOVE-WebMD, Hasbro, Blue Apron
Nasdaq - 16 hours ago
N>: up 4.8 pct at $2.85 premarket BRIEF-New Residential and Ocwen announce agreement relating to mortgage servicing rights transfer and subservicing [nFWN1KF07F] ** PetMed Express Inc <PETS.O>: up 5.4 pct at $42.71 premarket BRIEF-PetMed ...
US STOCKS ON THE MOVE-WebMD, Blue Apron, Hibbett, Halliburton - Times of India
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PETS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PETS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$47.95 Current Price

$17.64 Growth Price (DCF)

Overvalued by 63.22%


Growth Rate Assumed by Market: 31.92%


Future Free Cash Flow Growth Rate: 3.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$9.41 Stability Price (EPV)

Overvalued by 80.38%


Discount Rate: 15.0%

$3.07 NCA Price

Overvalued by 93.59%

$19.01 Book Price

Overvalued by 60.36%


Varying Cash Return on Invested Capital over the past 5 years

PETS has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

PETS has created $62.27 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20132014201520162017
Free Cash Flow 12.66M 13.46M 31.13M 923,000.00 36.60M
divided by
Invested Capital 30.54M 36.44M 24.23M 45.56M 35.72M
Cash ROIC 41.47% 36.94% 128.45% 2.03% 102.45%

Excellent Return on Equity over the past 5 years

Over the past 5 years, PETS has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

PETS has generated $25.16 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20132014201520162017
Net Income 17.17M 17.97M 17.45M 20.57M 23.82M
divided by
Stockholders' Equity 64.01M 70.22M 75.44M 83.20M 93.37M
Return on Equity 26.81% 25.59% 23.14% 24.72% 25.51%

Excellent Business Performance over the past 10 years

PETS has been able to maintain profitability in good times and bad. This could mean PETS has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

PETS has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Free Cash Flow 18.88M 11.76M 26.64M 29.44M 19.69M 12.66M 13.46M 31.13M 923,000.00 36.60M

Very Strong Balance Sheet

PETS has more Cash than its Total Liabilities, resulting in $1.94 Net Cash per share. In other words, if you buy PETS today, the price you're paying for shares is actually $46.01 because $1.94 of Cash is included in the current share price. This much Cash is very healthy. It can help PETS sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Cash 25.05M 30.13M 53.14M 59.78M 57.15M 33.65M 33.84M 51.20M 37.64M 58.73M
Current Assets 45.22M 61.63M 86.50M 89.60M 87.61M 70.19M 74.21M 80.40M 67.63M 81.79M
Total Assets 73.45M 81.96M 104.17M 106.29M 91.06M 73.18M 78.38M 82.85M 90.28M 112.81M
Current Liabilities 6.42M 6.99M 7.09M 8.96M 9.39M 9.00M 8.09M 7.42M 7.08M 18.36M
Total Liabilities 6.42M 6.99M 7.31M 9.28M 9.88M 9.17M 8.16M 7.42M 7.08M 19.44M
Stockholder' Equity 67.03M 74.97M 96.86M 97.01M 81.18M 64.01M 70.22M 75.44M 83.20M 93.37M
Current Ratio 7.04 8.81 12.20 10.00 9.33 7.80 9.17 10.84 9.55 4.46
TL-to-TA 0.09 0.09 0.07 0.09 0.11 0.13 0.10 0.09 0.08 0.17

Consistent Reinvestment of Profits over the past 10 years

PETS has consistently retained profits. This may put PETS in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, PETS can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Retained Earnings 58.64M 75.16M 94.31M 97.12M 81.11M 63.99M 68.65M 72.34M 78.30M 86.53M
Retained Earnings Growth - 28.17% 25.48% 2.98% -16.48% -21.11% 7.28% 5.38% 8.23% 10.52%

Competitive Industry over the past 10 years

PETS is likely operating in an industry with medium to low barriers to entry. This may mean that PETS doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that PETS invests heavily in R&D and Sales, General & Administrative expenses.

Only $8.92 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Net Income 20.02M 22.98M 26.00M 20.87M 16.66M 17.17M 17.97M 17.45M 20.57M 23.82M
divided by
Revenue 188.34M 219.41M 238.27M 231.64M 238.25M 227.83M 233.39M 229.40M 234.68M 249.18M
Net Profit Margin 10.63% 10.47% 10.91% 9.01% 6.99% 7.53% 7.70% 7.61% 8.76% 9.56%

Varying Pricing Power over the past 10 years

PETS has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$41.78 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Gross Profit 74.21M 85.33M 91.86M 83.96M 238.25M 77.12M 77.62M 76.27M 76.30M 79.31M
divided by
Revenue 188.34M 219.41M 238.27M 231.64M 238.25M 227.83M 233.39M 229.40M 234.68M 249.18M
Gross Margin 39.41% 38.89% 38.55% 36.24% 100.00% 33.85% 33.26% 33.25% 32.51% 31.83%

Low Capital Intensity over the past 10 years

PETS has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that PETS may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

17.95% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Capital Expenditure 502,706.00 3.21M 1.05M 667,000.00 705,000.00 626,000.00 45,000.00 918,000.00 20.13M 10.60M
divided by
Net Income 20.02M 22.98M 26.00M 20.87M 16.66M 17.17M 17.97M 17.45M 20.57M 23.82M
Capital Expenditure Ratio 2.51% 13.96% 4.03% 3.20% 4.23% 3.65% 0.25% 5.26% 97.88% 44.52%

Strong Dividend History over the past 10 years

PETS has consistently distributed a dividend for the past 8 years. This suggests PETS is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Dividend Paid - - 6.81M 10.73M 10.96M 31.97M 13.33M 13.81M 14.68M 15.51M
divided by
Shares Outstanding 24.30M 23.48M 22.75M 22.64M 20.71M 20.05M 20.04M 20.14M 20.25M 20.38M
Dividend Paid Per Share - - 0.30 0.47 0.53 1.59 0.66 0.69 0.72 0.76
Price at Year End 16.42 16.45 17.28 10.25 10.85 16.48 14.50 17.69 23.07 32.80
Dividend Yield - - 1.73% 4.62% 4.88% 9.68% 4.59% 3.88% 3.14% 2.32%

Strong History of Stock Buybacks over the past 10 years

PETS has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Shares Outstanding 24.30M 23.48M 22.75M 22.64M 20.71M 20.05M 20.04M 20.14M 20.25M 20.38M
Stock Bought Back - 3.48% 3.24% 0.45% 9.34% 3.29% 0.03% -0.46% -0.58% -0.61%
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Discussion
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4
Posted by Alexleroi  (on December 12, 2012)
And again, Advertising expenses are not immediately classified as expenses.
1
Posted by Alexleroi  (on December 12, 2012)
Bold accounting practices: inaccessible ARS funds not treated as loss but classified as long-term assets.
4
Posted by Honeybadger  (on December 14, 2012)
Good catch on both counts! It's right there in black and white on pages 31 and 32 of the 2011 annual report. I love the logic of the advertising expenses not being expensed until the advertisement is aired each time. The money is already spent. It should be expensed! Reference the Auction Rate Securities, they have 12.5 million worth or the rough equivalent of half the average yearly net income. 3 years after the credit crisis and they still can't move them? They are probably worthy of a substantial writedown/impairment charge. Of course, the Wall Street dog and pony show would not like the effect that would have on earnings.