Balance Sheet StrengthA strong equity base and favorable equity ratio provide durable financial flexibility, enabling Petgo to fund operations, support working capital and absorb shocks over months. Manageable but rising leverage warrants monitoring, yet the equity cushion underpins stability and optionality.

Stable Gross Margins / Cost ManagementConsistent gross margins signal sustained pricing power or steady input-cost controls, allowing Petgo to defend unit economics. Over a 2–6 month horizon stable gross margin underpins margin sustainability even if volumes fluctuate, supporting profitability recovery efforts.

Positive Cash Conversion AbilityA positive free-cash-flow-to-net-income ratio shows the business converts earnings into cash, enabling reinvestment, debt servicing, or strategic initiatives. Even with some OCF volatility, persistent positive conversion is a durable sign of operational resilience and self-funded growth potential.

Bears Say

Revenue DeclineAn ~11% revenue decline highlights weakening top-line momentum, reducing scale advantages and putting pressure on fixed-cost absorption. Over 2–6 months this can compress margins, slow reinvestment plans and signal demand or distribution challenges needing strategic response.

Sharp EPS DeteriorationA more than 100% drop in EPS indicates substantial earnings deterioration, which erodes retained earnings and reduces capital available for reinvestment. Persistently weak EPS constrains management options, hurts return metrics and can signal recurring operational or one-off losses affecting medium-term plans.

Volatile Cash Flow And Rising LeverageVolatile operating cash flow combined with rising leverage reduces financial flexibility and raises refinancing risk. If cash generation falters while debt edges up, the company may face tougher trade-offs on capex, working capital and deleveraging over the coming quarters.

7140 FAQ

What was Petgo Corporation’s price range in the past 12 months?

Petgo Corporation lowest stock price was ¥708.00 and its highest was ¥1049.00 in the past 12 months.

What is Petgo Corporation’s market cap?

Petgo Corporation’s market cap is ¥1.63B.

When is Petgo Corporation’s upcoming earnings report date?

Petgo Corporation’s upcoming earnings report date is May 20, 2026 which is in 93 days.

How were Petgo Corporation’s earnings last quarter?

Petgo Corporation released its earnings results on Feb 12, 2026. The company reported -¥5.24 earnings per share for the quarter, missing the consensus estimate of N/A by -¥5.24.

Is Petgo Corporation overvalued?

According to Wall Street analysts Petgo Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Petgo Corporation pay dividends?

Petgo Corporation does not currently pay dividends.

What is Petgo Corporation’s EPS estimate?

Petgo Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Petgo Corporation have?

Petgo Corporation has 1,884,200 shares outstanding.

What happened to Petgo Corporation’s price movement after its last earnings report?

Petgo Corporation reported an EPS of -¥5.24 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 4.86%.

Which hedge fund is a major shareholder of Petgo Corporation?

Currently, no hedge funds are holding shares in JP:7140

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Petgo Corporation

Petgo Corporation (7140) is a leading company in the pet care industry, specializing in the development and distribution of high-quality pet products and services. The company operates in various sectors, including pet food, grooming, and health care solutions. Petgo offers a diverse range of core products such as premium pet food, grooming supplies, and veterinary services, aimed at enhancing the overall well-being of pets and satisfying the needs of pet owners.