WOOF  Vca Antech Inc.

Exchange

NASDAQ

Sector

Consumer Non-Durables

Industry

Farming/Seeds/Milling

Market Cap.

7.43B

Vuru Grade

44.60/100

Current Price

$91.50
-0.08 (-0.09%)

Growth Price

$48.97
Overvalued by 46.48%

Stability Price

$13.52
Overvalued by 85.22%

Company Metrics

  • P/E 35.74
  • P/S 2.96
  • P/B 5.06
  • EPS 2.56
  • Cash ROIC 9.41%
  • Cash Ratio 0.27
  • Dividend 0 / 0%
  • Avg. Vol. 2.01M
  • Shares 81.20M
  • Market Cap. 7.43B

Company Description

VCA Antech, Inc. operates as an animal healthcare company in the United States and Canada. The company offers veterinary services and diagnostic testing to support veterinary care; and sells diagnostic imaging equipment, and other medical technology products and related services to the veterinary market. It operates in three segments: Animal Hospital, Laboratory, and Medical Technology. The Animal... more


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

News

Mars, Incorporated to Acquire VCA Inc.
PR Newswire (press release) - Jan 9, 2017
MCLEAN, Va. and LOS ANGELES, Jan. 9, 2017 /PRNewswire/ -- Mars, Incorporated and VCA Inc. (NASDAQ: WOOF) today announced that they have entered an agreement under which Mars will acquire all of the outstanding shares of VCA for $93 per share, ...
Why VCA Inc Stock Popped Today - Motley Fool
Candy maker Mars is buying LA animal hospital chain VCA for $7.7 billion - Los Angeles Times
VCA Inc. to Report Fourth Quarter 2016 Financial Results
GlobeNewswire (press release) - Oct 26, 2016
LOS ANGELES, Jan. 05, 2017 (GLOBE NEWSWIRE) -- VCA Inc. (NASDAQ:WOOF), a leading animal healthcare company in the United States and Canada, will report financial results for its fourth quarter of 2016 on Thursday, February 9th, 2017, at 8:00 a.m. ...
SHAREHOLDER ALERT: Monteverde & Associates PC Announces an Investigation of ...
PR Newswire (press release) - Feb 16, 2017
NEW YORK, Feb. 16, 2017 /PRNewswire/ -- Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a boutique securities firm headquartered at the Empire State Building in New York City, is investigating VCA, Inc. ("VCA" or the ...
VCA Inc. Reports Fourth Quarter 2016 Results
GlobeNewswire (press release) - Feb 9, 2017
LOS ANGELES, Feb. 09, 2017 (GLOBE NEWSWIRE) -- VCA Inc. (NASDAQ:WOOF), a leading animal healthcare company in the United States and Canada, today reported financial results for the fourth quarter ended December 31, 2016, as follows: revenue ...
Mars dives into animal hospital business with $9.1 billion acquisition
Nashville Business Journal - Jan 10, 2017
... a major animal hospital network to its holdings. Mars announced Monday it has agreed to purchase all outstanding shares of Los Angeles-based VCA Inc. (NASDAQ: WOOF) for $93 per share, a deal that is worth $9.1 billion, including $1.4 billion in debt.
Mars Inc.'s Acquisition of VCA: More Fidos, Fewer Sugars - Yahoo Finance
VCA Inc. to Present at Stifel 2016 Healthcare Conference
GlobeNewswire (press release) - Oct 24, 2016
LOS ANGELES, Oct. 24, 2016 (GLOBE NEWSWIRE) -- VCA Inc. (NASDAQ:WOOF), a leading animal healthcare company in the United States and Canada, will present at the Stifel 2016 Healthcare Conference on Tuesday, November 15, 2016, at the Lotte ...
VCA Inc. to Present at CL King's 14th Annual Best Ideas Conference
GlobeNewswire (press release) - Aug 15, 2016
LOS ANGELES, Aug. 15, 2016 (GLOBE NEWSWIRE) -- VCA Inc. (NASDAQ:WOOF), a leading animal healthcare company in the United States and Canada, will present at CL King's 14th Annual Best Ideas Conference on Tuesday, September 13th, at the ...
Stock Alert: VCA Inc Realized Volatility Hits A Rock Bottom Low
CML News - Mar 24, 2017
Before we cover the full analysis we make a quick alert here that VCA Inc (NASDAQ:WOOF) has seen its stock price move at a collapsing low level.
VCA Inc (WOOF) Rating Increased to Hold at Zacks Investment Research
Sports Perspectives - 12 hours ago
VCA logo VCA Inc (NASDAQ:WOOF) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Saturday.
Zacks Investment Research upgraded VCA Inc (NASDAQ:WOOF) to Hold in a report ... - Breaking Finance News
Research Reports on Services Equities -- H&R Block, VCA Inc., Myriad, and QIAGEN
PR Newswire (press release) - Mar 21, 2017
Equities under review this morning within this space are: H&R Block Inc. (NYSE: HRB), VCA Inc. (NASDAQ: WOOF), Myriad Genetics Inc. (NASDAQ: MYGN), and QIAGEN N.V.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for WOOF 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 WOOF'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.

$91.50 Current Price

$48.97 Growth Price (DCF)

Overvalued by 46.48%


Growth Rate Assumed by Market: 30.19%


Future Free Cash Flow Growth Rate: 9.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$13.52 Stability Price (EPV)

Overvalued by 85.22%


Discount Rate: 15.0%

$52.34 Book Price

Overvalued by 42.80%


Poor Cash Return on Invested Capital over the past 5 years

WOOF has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

WOOF has only created $9.41 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 160.45M 183.10M 197.26M 222.31M 266.89M
divided by
Invested Capital 1.84B 1.91B 2.05B 2.18B 3.00B
Cash ROIC 8.73% 9.59% 9.61% 10.22% 8.91%

Growing Return on Equity over the past 5 years

WOOF has been growing returns with capital that shareholders have invested. This is a positive sign and demonstrates that both the business and management performance are improving over time.

WOOF has generated $11.81 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 50.72M 142.92M 140.68M 216.10M 217.40M
divided by
Stockholders' Equity 1.18B 1.31B 1.20B 1.24B 1.47B
Return on Equity 4.29% 10.93% 11.72% 17.36% 14.78%

Excellent Business Performance over the past 10 years

WOOF has been able to maintain profitability in good times and bad. This could mean WOOF 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.

WOOF has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 121.66M 120.68M 127.78M 96.83M 127.57M 160.45M 183.10M 197.26M 222.31M 266.89M

Weak Balance Sheet

WOOF's financial position is not ideal. The key is to check whether WOOF is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 110.87M 88.96M 145.18M 97.13M 63.65M 68.44M 125.03M 81.38M 98.89M 81.41M
Current Assets 216.90M 199.07M 278.21M 246.31M 237.16M 243.53M 309.75M 283.45M 282.16M 281.05M
Total Assets 1.29B 1.45B 1.63B 1.77B 2.00B 2.09B 2.24B 2.33B 2.51B 3.37B
Current Liabilities 116.39M 123.12M 122.36M 141.59M 156.99M 185.44M 204.15M 197.22M 232.31M 296.50M
Total Liabilities 718.33M 738.05M 752.36M 767.50M 887.49M 908.08M 930.44M 1.13B 1.26B 1.90B
Stockholder' Equity 568.38M 710.99M 875.05M 998.92M 1.11B 1.18B 1.31B 1.20B 1.24B 1.47B
Current Ratio 1.86 1.62 2.27 1.74 1.51 1.31 1.52 1.44 1.21 0.95
TL-to-TA 0.56 0.51 0.46 0.43 0.44 0.43 0.42 0.49 0.50 0.56

Consistent Reinvestment of Profits over the past 10 years

WOOF has consistently retained profits. This may put WOOF 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, WOOF can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 275.60M 408.58M 540.01M 650.25M 745.66M 791.21M 928.72M 1.06B 1.28B 1.48B
Retained Earnings Growth - 48.25% 32.17% 20.41% 14.67% 6.11% 17.38% 14.58% 19.83% 16.40%

Competitive Industry over the past 10 years

WOOF is likely operating in an industry with medium to low barriers to entry. This may mean that WOOF 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 WOOF invests heavily in R&D and Sales, General & Administrative expenses.

Only $8.23 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 121.01M 132.98M 131.43M 110.24M 95.41M 50.72M 142.92M 140.68M 216.10M 217.40M
divided by
Revenue 1.16B 1.28B 1.31B 1.38B 1.49B 1.70B 1.80B 1.92B 2.13B 2.52B
Net Profit Margin 10.47% 10.41% 10.00% 7.98% 6.42% 2.98% 7.93% 7.33% 10.13% 8.64%

Inconsistent Gross Profit Margins over the past 10 years

WOOF has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$32.01 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 321.42M 342.64M 343.00M 331.16M 1.49B 374.97M 409.38M 444.64M 510.07M 592.06M
divided by
Revenue 1.16B 1.28B 1.31B 1.38B 1.49B 1.70B 1.80B 1.92B 2.13B 2.52B
Gross Margin 27.80% 26.82% 26.09% 23.97% 100.00% 22.06% 22.70% 23.18% 23.91% 23.52%

High Capital Intensity over the past 10 years

WOOF spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

62.36% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 48.71M 72.64M 55.70M 71.24M 63.49M 76.81M 73.27M 72.95M 95.23M 122.95M
divided by
Net Income 121.01M 132.98M 131.43M 110.24M 95.41M 50.72M 142.92M 140.68M 216.10M 217.40M
Capital Expenditure Ratio 40.26% 54.62% 42.38% 64.62% 66.54% 151.45% 51.27% 51.85% 44.07% 56.55%

Inconsistent Dividend History over the past 10 years

WOOF has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - 4.19M - 3.28M 4.48M 4.87M 5.01M 4.96M -
divided by
Shares Outstanding 85.72M 85.70M 86.10M 87.05M 87.39M 88.67M 89.66M 87.83M 82.41M 81.73M
Dividend Paid Per Share - - 0.05 - 0.04 0.05 0.05 0.06 0.06 -
Price at Year End 44.60 18.93 24.85 23.49 19.75 20.95 31.44 49.20 55.13 68.65
Dividend Yield - - 0.20% - 0.19% 0.24% 0.17% 0.12% 0.11% -

History of Stock Buybacks over the past 10 years

WOOF has some 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 December
2007200820092010201120122013201420152016
Shares Outstanding 85.72M 85.70M 86.10M 87.05M 87.39M 88.67M 89.66M 87.83M 82.41M 81.73M
Stock Bought Back - 0.02% -0.46% -1.10% -0.39% -1.44% -1.11% 2.09% 6.57% 0.84%
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