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TSE:PET
Pet Valu Holdings (PET.TO)
Financials 
Technical Analysis 
Jun 14, 2026, 12:00 amThis summary was created by AI, based on 8 opinions in the last 12 months.
Pet Valu Holdings has experienced significant fluctuations in its stock performance, especially influenced by the Covid-related pet boom that saw prices soaring, followed by a notable decline. Recent reports have suggested weakening growth prospects and lower margins, which have exacerbated concerns among investors. The stock has dropped from $40 to just under $22, indicating that it is trading below its long-term support levels, raising alarms regarding its ability to service existing debt. Experts highlight an urgency for the company to innovate and adapt to consumer demand for value, with potential opportunities remaining if it executes effectively. Several recommendations suggest a disciplined approach to managing positions, with past gains noted while advocating for cautious actions amidst the current low performance.
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Premium contentThe retailer of pet supplies in Canada opened 11 new stores last quarter, increasing its network to 794, and is targeting a total of 40-50 new stores in 2024. Cash reserves are growing while debt is retired. It trades at 22x earnings and its dividend is backed by a payout ratio under 40% of cash flow. We recommend setting a stop-loss at $21, looking to achieve $37 -- upside potential of 38%. Yield 1.5%
(Analysts’ price target is $37.59)Canada's largest retailer in the space. Industry growth driven by pet adoption, and higher spending per pet. Really strong 22% EBITDA margins. Healthy free cashflow, reinvested in opening new stores and distribution centres. Consistently beats consensus.
Same-store sales growth has slowed since pandemic moves. Stock's corrected to 19x earnings, really good buy considering earnings quality and plans for growth. Yield is 1.4%.
Is the leading pet retailer in Canada as pet adoption continues to grow. This business is recession-proof. The valuation had to come in. Organic same-store sales growth has slowed a little, but management has delivered by expanding store count in underserved markets. The PE has fallen from 30x to 15x and now is 17-20x, which is reasonable considering growth potential and cash flow.
It is a good price so he is adding more. It works on a franchise basis, has good management, and it is the only company expanding outside city centres. The only overhang is a big private equity company that owns a controlling position has been peeling off stock. However there is healthy organic growth going forward. Lots of pets were bought during the pandemic and they need food.
Pet Value reported better-than-expected adjusted earnings per share but lower-than-expected same-store sales growth. Adjusted EPS of $0.36 declined 7% year-over-year missing estimates of $0.34. Same-store sales growth came in at 6%, driven by a 4.8% increase in transaction count. Revenue increased 13% year-over-year to $256.4 million, missing estimates slightly of $257.2 million. Adjusted EBITDA rose 4%, while the street called for a 1% decline. Gross margin improved by 1.5% year-over-year to 36.1% vs consensus of 34.6%. Management left the 2023 guidance unchanged at revenue of $1.05 to $1.08 million, same-store sales growth of 7% to 10%, and new store operations of 40-50 stores. The quarter overall was a miss and the guidance came in slightly lower than consensus.
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Leading pet supplies in Canada by far. Covid drove pet adoption and they need to be fed. There's higher spending per pet, too. He bought on a dip. They are growing double-digit growth and have raised guidance. Keep beating the street. A recession-resistant business.
(Analysts’ price target is $45.17)
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We reiterate PET, Canada's largest pet food distributor with over 800 locations, as a TOP PICK. The company announced completion of its BC distribution centre, the second largest in Canada (following its own in Ontario) and plans to grow in Calgary. We like that cash reserves are growing, while debt is retired, while trading at 23x earnings. We recommend trailing up the stop (from $21) to $23, looking to achieve $33 -- upside potential of 28%. Yield 1.6%
(Analysts’ price target is $32.67)