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Investor Insights

This summary was created by AI, based on 6 opinions in the last 12 months.

Pet Valu Holdings, with the symbol PET-T, is Canada's largest retailer in the pet space. The industry is experiencing growth due to increased pet adoption and higher spending per pet. The company has strong EBITDA margins, healthy cash flow, and is consistently beating consensus. However, same-store sales growth has slowed since the pandemic, and the stock has corrected to 19x earnings, making it a good buy considering earnings quality and growth plans. The business is seen as recession-proof and has good potential for organic growth. Despite recent misses on expectations, management is working towards expansion in underserved markets and rural areas, where there is more pricing power and less competition. Overall, experts view the company as a fine business with dominant market share, but with some concerns about valuation versus growth rate.

Consensus
Positive
Valuation
Fair Value
TOP PICK
Pet Valu Holdings

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%.

(Analysts’ price target is $37.35)
specialty stores
PAST TOP PICK
Pet Valu Holdings
(A Top Pick Jan 31/23, Down 22%)

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.

specialty stores
BUY
Pet Valu Holdings

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.

specialty stores
HOLD
Pet Valu Holdings
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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WATCH
Pet Valu Holdings

A fine business with dominant market share. American upstart, Chewy, spooked investors by expanding to Canada, but he isn't worried. His problem is valuation vs. growth rate, so shares are fairly valued now. Long term you will do okay, but it's not exciting for him now.

specialty stores
COMMENT
Pet Valu Holdings

It missed on expectations last week so the stock is down. It is interesting to note that its emphasis will now be on rural markets. There is more pricing power and less competition in rural areas. Also pet ownership in these areas is high.

specialty stores
TOP PICK
Pet Valu Holdings

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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DON'T BUY
Pet Valu Holdings
They're a retailer in the pet space. She prefers pet health supplier, Zoetis, because it offers more value.
specialty stores
PAST TOP PICK
Pet Valu Holdings
(A Top Pick June 25/08. Up 17.29%.)
specialty stores
PAST TOP PICK
Pet Valu Holdings
(A Top Pick June 25/08. Up 11.5%.)
specialty stores
TOP PICK
Pet Valu Holdings
One of the largest, highest quality pet food retailers in Canada. Own 341 locations, predominantly in Ontario. About 55% are franchised. Have moved from a lower and pet food model into private label nutritional pet food. Non-cyclical. Trades at only 8X forward earnings and about 4.7X EBITDA.
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Pet Valu Holdings(PET-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Pet Valu Holdings is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

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, 3 stock analysts published opinions about PET-T. 2 analysts recommended to BUY the stock. 0 analysts 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?

3 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 2024-04-24, Pet Valu Holdings (PET-T) stock closed at a price of $31.54.