Petmed Express (PETS) AI Stock Analysis

• Market Cap: $57.42M
• Dividend Yield: N/A
• Average Volume (3M): 112.51K
• Price to Earnings (P/E): 261.7
• Beta (1Y): 1.04
• Revenue Growth: -10.82%
• EPS Growth: N/A
• Country: US
• Employees: 287
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Medical - Pharmaceuticals
• EPS (TTM): N/A
• Shares Outstanding: 20,656,458
• 10 Day Avg. Volume: 118,012
• 30 Day Avg. Volume: 112,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.78
• Enterprise Value/Ebitda: 6.41
• 1Y Price Target: $3.00
• Price Target Upside: 7.14% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ―

Petmed Express shows a mixed financial performance with strong balance sheet stability but weak profitability and inconsistent cash flow. Technical analysis indicates a bearish trend with oversold conditions, while valuation metrics suggest the stock may be overvalued. The earnings call highlights progress in profitability and strategic investments, but challenges remain in sales and competitive pressures. Overall, the stock score reflects these combined factors, indicating moderate potential with significant risks.

Positive Factors

Balance Sheet Stability

A strong balance sheet with low debt enhances financial stability, providing resilience against market fluctuations and enabling strategic investments.

Technological Advancements

Investments in technology improve customer experience and operational efficiency, positioning the company for long-term growth in the digital marketplace.

Strategic Board Appointment

Adding experienced leadership supports strategic transformation, enhancing governance and potentially driving future growth initiatives.

Negative Factors

Decline in Net Sales

A significant decline in net sales indicates challenges in market demand or competitive positioning, potentially impacting long-term revenue growth.

Competitive Market Environment

Intense competition pressures margins and customer acquisition, challenging the company's ability to maintain market share and profitability.

Inconsistent Cash Flow

Volatile cash flow limits financial flexibility, affecting the company's ability to invest in growth opportunities and manage financial obligations.

Petmed Express Business Overview & Revenue Model

Company Description

Petmed Express, Inc., doing business as 1-800-PetMeds, operates as a leading nationwide pet pharmacy in the United States. The company is primarily involved in the retail of prescription and non-prescription pet medications and health products for dogs, cats, and horses directly to the consumer. Utilizing a direct-to-consumer sales model, Petmed Express offers a wide selection of products including prescription medications, over-the-counter products, and pet wellness products through its website and call center.

How the Company Makes Money

Petmed Express makes money by selling pet medications and health-related products through its online platform and call center. The company's revenue model is primarily based on the retail sale of prescription and non-prescription medications, where customers purchase products directly from Petmed Express. Key revenue streams include sales of prescription medications, which require a prescription from a vet, and non-prescription products such as flea and tick control, nutritional supplements, and hygiene products. Petmed Express benefits from its direct-to-consumer model, which eliminates the need for physical retail locations and allows for competitive pricing. Additionally, the company has established partnerships with veterinary suppliers and manufacturers to source a comprehensive range of pet health products. Factors contributing to its earnings include a broad customer base, repeat purchases from pet owners, and the growing trend of pet humanization which drives demand for high-quality pet healthcare products.

Petmed Express Financial Statement Overview

Summary

Petmed Express exhibits a mixed financial profile with strong balance sheet stability offset by weak profitability and inconsistent cash flow performance. Operational improvements are evident with positive EBIT and EBITDA margins in TTM, yet overall profitability remains a concern. The company should focus on enhancing revenue growth and optimizing free cash flow to strengthen its financial position further.

Income Statement

The income statement reflects a challenging period for Petmed Express. While there is a positive gross profit margin of 26.22% in TTM, the net profit margin is low at 0.14%, indicating tight profitability. Revenue growth has been inconsistent, with a decline in revenue from 2023 to 2024. EBIT and EBITDA margins have improved from negative values in 2023 to positive in TTM, suggesting some operational improvements but overall financial performance remains weak.

Balance Sheet

Petmed Express maintains a solid balance sheet with a low debt-to-equity ratio of 0.01, indicating strong financial stability. The equity ratio of 66.43% is robust, reflecting a healthy capital structure. Return on equity is modest at 0.37%, impacted by low profitability. Cash reserves are strong, providing a cushion against potential financial volatility.

Cash Flow

The cash flow statement shows mixed performance. The operating cash flow to net income ratio is strong at 13.54, indicating effective cash generation relative to net income. However, free cash flow growth is volatile, and the free cash flow to net income ratio is low at 2.40, reflecting limited free cash flow relative to earnings. While cash flow from operations is stable, improvements in free cash flow are necessary.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	281.06M	256.86M	273.42M	309.21M	284.13M
Gross Profit	78.65M	71.01M	78.08M	89.95M	81.25M
EBITDA	-1.11M	10.99M	27.03M	32.96M	33.23M
Net Income	-7.46M	5.14M	18.72M	23.92M	25.85M
Balance Sheet
Total Assets	169.88M	164.12M	176.32M	187.50M	155.32M
Cash, Cash Equivalents and Short-Term Investments	55.30M	104.09M	111.08M	118.72M	103.76M
Total Debt	1.45M	0.00	0.00	0.00	0.00
Total Liabilities	73.15M	40.32M	34.13M	46.22M	25.31M
Stockholders Equity	96.73M	123.80M	142.19M	141.28M	130.01M
Cash Flow
Free Cash Flow	-194.00K	22.54M	16.75M	37.64M	36.53M
Operating Cash Flow	4.32M	27.80M	18.50M	40.08M	38.84M
Investing Cash Flow	-40.67M	-10.26M	-1.75M	-2.43M	-2.31M
Financing Cash Flow	-12.44M	-24.54M	-24.38M	-22.69M	-33.30M

Petmed Express Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PETS, the sentiment is Negative. The current price of 2.8 is below the 20-day moving average (MA) of 2.96, below the 50-day MA of 3.14, and below the 200-day MA of 3.94, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 22.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PETS.

Petmed Express Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FONR	67 Neutral	97.17M	12.65	4.83%	―	1.43%	-19.78%
PETS	53 Neutral	$57.42M	261.68	0.36%	―	-10.82%	―
SY	47 Neutral	390.33M	-4.28	-32.05%	0.70%	-5.43%	-2022.89%
ZURA	43 Neutral	123.53M	-2.70	0.00%	―	0.00%	-50.20%
CLYM	41 Neutral	143.66M	-3.23	0.00%	―	0.00%	67.69%
VOR	33 Underperform	192.56M	-0.11	0.00%	―	0.00%	-686.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Petmed Express Corporate Events

PetMed Express Appoints Peter Batushansky to Board

On April 9, 2025, PetMed Express, Inc. announced the appointment of Peter Batushansky to its Board of Directors, expanding the board from six to seven members. Mr. Batushansky, who brings over 20 years of experience in retail, pet, healthcare, and private equity, will also serve on the Audit and Corporate Governance and Nominating Committees. His appointment is part of the company’s strategic board refreshment to support its transformation strategy. Concurrently, longtime board member and former Chairman Dr. Gian Fulgoni announced his intention to retire at the 2025 annual shareholders’ meeting, after which the board will revert to six members.

Spark’s Take on PETS Stock

According to Spark, TipRanks’ AI Analyst, PETS is a Neutral.

Petmed Express’s overall stock score reflects a mixed financial and strategic outlook. Strong balance sheet stability is offset by weak profitability and overvaluation concerns. The recent earnings call highlights improvements in profitability and cost management, but declining sales and a challenging competitive environment weigh on the score. Technical indicators suggest bearish trends, further impacting the overall assessment.

To see Spark’s full report on PETS stock, click here.