WOOF Intrinsic Value Calculation – PETCO HEALTH AND WELLNESS Reports Q2 Earnings Results for FY2024 – August 24, 2023
August 27, 2023
☀️Earnings Overview
PETCO HEALTH AND WELLNESS ($NASDAQ:WOOF) reported their financial results for Q2 of FY2024 on August 24 2023. With total revenue of USD 1530.7 million, there was a 3.4% year-over-year growth. However, the company experienced a decrease in net income for the quarter, going from 13.5 million in the previous year to -14.6 million.
Stock Price
On Thursday, August 24th, PETCO HEALTH AND WELLNESS reported their earnings results for the second quarter of fiscal year 2024. The results showed that the company’s stock opened at $5.2 and closed at the same price, representing a plunge of 20.6% from its previous closing price of $6.5. This decrease in stock price is likely attributed to disappointing financials reported by the company, which included lower-than-anticipated total revenue, as well as a net loss for the second quarter. Despite these challenges, PETCO HEALTH AND WELLNESS has managed to grow its revenue by 6% year-over-year in the second quarter of FY 2024. Going forward, PETCO HEALTH AND WELLNESS has started to focus on expanding their customer base and enhancing their customer experience by introducing new products and services. This should help the company overcome their current challenges and position them for success in the future. Furthermore, the company is taking steps to ensure that their financials remain stable and that their operations are resilient in the face of any potential disruptions. Overall, PETCO HEALTH AND WELLNESS reported a disappointing second quarter of earnings results in FY 2024.
However, the company appears to have taken the necessary steps to restore its profitability and should be able to continue growing in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WOOF. More…
| Total Revenues | Net Income | Net Margin |
| 6.17k | 36.15 | 0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WOOF. More…
| Operations | Investing | Financing |
| 380.18 | -254.19 | -77.28 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WOOF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.66k | 4.25k | 9.04 |
Key Ratios Snapshot
Some of the financial key ratios for WOOF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 2.9% |
| FCF Margin | ROE | ROA |
| 2.0% | 4.7% | 1.7% |
Analysis – WOOF Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough analysis of PETCO HEALTH AND WELLNESS’s fundamentals. After taking into account all the financial information available, we arrived at a fair value of around $17.5 for PETCO HEALTH AND WELLNESS’s shares through our proprietary Valuation Line. This presents as an interesting opportunity for investors to purchase the stock at a significant discount. More…
Peers
In terms of market share, Petco Health and Wellness Co Inc is the clear leader in the pet specialty retail industry.
However, it faces stiff competition from a number of large retailers, including 4Cs HD Co Ltd, Mi Ming Mart Holdings Ltd, and La Comer SAB de CV. These companies are all well-established and have significant resources at their disposal. They are also able to offer a wide range of products and services, which gives them a significant competitive advantage.
– 4Cs HD Co Ltd ($TSE:3726)
Jinco 4Cs HD Co Ltd is a company that produces and sells video game hardware and software. As of 2022, the company has a market cap of 3.09B and a ROE of -27.91%. The company’s products include video game consoles, handheld devices, and PC software.
– Mi Ming Mart Holdings Ltd ($SEHK:08473)
Ming Mart Holdings Ltd is a market leader in the food and beverage industry in China. The company has a market cap of 140M as of 2022 and a ROE of 11.84%. Ming Mart Holdings Ltd is a well-established company with a strong track record of growth and profitability. The company has a diversified product portfolio and a strong brand presence in China.
Summary
Investors were disappointed with Petco Health and Wellness’ second quarter earnings results, as their total revenue increased only 3.4% year-over-year to USD 1530.7 million. Net income for the quarter was USD -14.6 million, a decrease from the previous year’s figure of 13.5 million. This led to a drop in the company’s stock price on the same day. Despite this, analysts believe that Petco could still be a good long-term investment, as long as the company is able to successfully adjust their strategies to capitalize on current market trends and improve their bottom line.
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