TSE:PET
Pet Valu Holdings (PET-T)
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 6 opinions in the last 12 months.
Pet Valu Holdings (PET-T) has recently experienced stagnation in its stock performance, prompting some experts to recommend adjusting stop-loss levels for better risk management. The company's focus on heavy pet food products is viewed positively, as it offers resilience against online competition. Despite a flat stock price over the past year, analysts note a significant increase in net income, signaling strong performance amidst retail challenges. The completion of new distribution centers and plans for expansion into key markets like Calgary show promise for future growth. Experts are generally optimistic, highlighting a growing cash reserve, reduced debt, and potential upside based on favorable price-to-earnings ratios, making it an attractive long-term investment opportunity.
Premium contentPremium contentPremium contentIt got very overvalued during the pandemic hype, but this has since normalized. However, systems sales are still growing as they open 40-45 new stores annually. The market remains underserved outside cities. A cap-lite model, generating 22% EBITDA margins, and over 20% ROIC. Strong free cash flow. A great time to buy at 16x PE. Is recession-proof. Likely a takeover candidate.
Premium contentPremium contentWe reiterate this Canadian based Pet store operator. Recently reported earnings showed a 28% increase in net income. The company has opened its Vancouver regional distribution centre, positioning well ahead of the holiday season. We like that cash reserves are growing, while debt is retired. We recommend trailing up the stop (from $16) to $18, looking to achieve $32 -- upside of 25%. Yield 1.7%
(Analysts’ price target is $31.82)Premium contentShares are basically flat over the past year do some quarterly misses, but its PE has fallen to 22.34x, below its 24.06x, making it an attractive entry point. It pays a moderate 1.72x dividend because the company is investing in expansion, which should bolster top and bottom lines in future quarters and reinforce the company's prominence in this healthy space.
Premium contentWe 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)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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Pet Valu Holdings(PET-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 6
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 7
Pet Valu Holdings(PET-T) Frequently Asked Questions
What is Pet Valu Holdings stock symbol?
Pet Valu Holdings is a Canadian stock, trading under the symbol PET-T on the Toronto Stock Exchange (PET-CT). It is usually referred to as TSX:PET or PET-T
Is Pet Valu Holdings a buy or a sell?
In the last year, 7 stock analysts published opinions about PET-T. 6 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Pet Valu Holdings.
Is Pet Valu Holdings a good investment or a top pick?
Pet Valu Holdings was recommended as a Top Pick by on . Read the latest stock experts ratings for Pet Valu Holdings.
Why is Pet Valu Holdings stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Pet Valu Holdings worth watching?
7 stock analysts on Stockchase covered Pet Valu Holdings In the last year. It is a trending stock that is worth watching.
What is Pet Valu Holdings stock price?
On 2025-07-10, Pet Valu Holdings (PET-T) stock closed at a price of $33.67.
Our PAST TOP PICK with PET is progressing well. To remain disciplined, we recommend trailing up the stop (from $26) to $29 at this time.