Petmed Express (PETS) AI Stock Analysis

• Market Cap: $65.91M
• Dividend Yield: N/A
• Average Volume (3M): 154.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -24.81%
• EPS Growth: -5344.15%
• Country: US
• Employees: 287
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.50
• Shares Outstanding: 21,400,496
• 10 Day Avg. Volume: 175,930
• 30 Day Avg. Volume: 154,204
• PEG Ratio: 0.73
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -218.47
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.70
• Enterprise Value/Ebitda: -0.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.22
• Revenue Forecast (FY): $199.06M

• Rating: 41 Neutral
• Price Target: $3.00 ▲(69.49% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by sharply deteriorating financial performance (losses, contracting revenue, and cash burn). Technicals also remain weak with bearish trend indicators despite oversold readings. Valuation is difficult to support due to negative earnings, and corporate events add incremental risk due to the Nasdaq compliance notice.

Positive Factors

Low leverage / solvency flexibility

Very low debt-to-equity (~0.02) materially reduces near-term insolvency risk and preserves financing flexibility. Over a 2–6 month horizon this allows management to prioritize operational fixes or invest in retention initiatives without sizable interest burdens or immediate refinancing pressure.

Direct-to-consumer pharmacy model

A dedicated e-commerce pharmacy and fulfillment capability creates durable operational moats: recurring prescription demand, autoship/subscription potential, and direct customer relationships. These structural assets support repeat revenue, retention and margin preservation over the medium term if execution stabilizes.

Governance continuity

Re-election of the full board and auditor ratification provide governance continuity during a turnaround period. Stable oversight reduces execution risk for multi-month strategic actions, helping ensure leadership consistency for cost-control, operational fixes, or negotiations with suppliers and partners.

Negative Factors

Negative operating and free cash flow

Sustained cash burn (OCF -$16.6M, FCF -$22.9M, FCF down ~32%) erodes liquidity and constrains strategic options. Over several months this reduces ability to fund marketing, inventory or tech investments and may force asset sales, cost cuts, or dilutive financing if not reversed.

Sharp deterioration in profitability and revenue

Movement from prior-year profitability to a large net loss and declining revenue signals structural demand or cost issues. With gross margin near 29%, operating costs now drive deep losses; without durable demand recovery or cost restructuring, profitability risks persisting for multiple quarters.

Nasdaq compliance / reporting risk

A Nasdaq compliance notice over delayed filings indicates control or process weaknesses and raises regulatory risk. Persistent reporting issues can lead to sanctions or listing threats, distract management, and impair stakeholder confidence during a multi-month turnaround or capital-raising effort.

Petmed Express Business Overview & Revenue Model

Company Description

PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; telephone contact center; and direct mail/print, which includes brochures and postcards, as well as television advertising under the 1-800-PetMeds and PetMeds brands. PetMed Express, Inc. was incorporated in 1996 and is headquartered in Delray Beach, Florida.

How the Company Makes Money

PetMed Express generates revenue primarily through the sale of pet medications and health products. The company's revenue model is built on both prescription and over-the-counter products, with a significant focus on recurring purchases like monthly flea and tick treatments. The company also benefits from partnerships with veterinarians, enabling them to facilitate prescription fulfillment and reach a wider customer base. Additional revenue streams may include product sales related to pet supplies and nutritional supplements. Marketing efforts, including promotions and customer loyalty programs, further contribute to driving sales and enhancing customer retention.

Petmed Express Financial Statement Overview

Summary

Income statement and cash flow are very weak: TTM revenue declined (-6.32%), profitability swung to a large net loss (net margin ~-35.5%), and both operating cash flow (-$16.6M) and free cash flow (-$22.9M) are negative. The key offset is low leverage (debt-to-equity ~0.02), but equity has fallen sharply (to ~$32.8M TTM) and ROE is deeply negative (~-122%), indicating material financial deterioration.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp deterioration in profitability: revenue declined (-6.32%) and the company generated a large net loss (net margin about -35.5%) with deeply negative operating profitability. While gross margin remains near ~29%, it is not sufficient to cover operating costs. The annual trend highlights the break in earnings power: the business was solidly profitable in 2021–2022, modestly profitable in 2023, then moved to losses in 2024–2025, signaling weakening demand and/or higher cost structure.

Balance Sheet

Leverage is very low (TTM debt-to-equity ~0.02), which materially reduces solvency risk and provides flexibility. However, the equity base has fallen significantly versus prior years (from ~$141–142M in 2021–2022 to ~$32.8M TTM), reflecting sustained losses and value erosion. Returns to shareholders are deeply negative TTM (return on equity about -122%), so despite low debt, the balance sheet is being pressured by ongoing operating underperformance.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is weak: operating cash flow is negative (-$16.6M) and free cash flow is meaningfully negative (-$22.9M), with free cash flow also shrinking further (growth about -32.3%). This is a major shift from 2021–2023 when the company produced strong positive operating cash flow and free cash flow. Although free cash flow is higher than net income in TTM (because the net loss is even larger), the core issue is cash burn, which reduces financial flexibility if it persists.

Breakdown	TTM	Jun 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	182.67M	226.97M	274.10M	256.58M	273.42M	303.58M
Gross Profit	52.94M	69.14M	77.71M	71.01M	75.34M	84.32M
EBITDA	-48.38M	6.71M	783.00K	10.99M	29.81M	32.96M
Net Income	-64.87M	-6.27M	-7.46M	5.14M	21.10M	23.92M
Balance Sheet
Total Assets	87.97M	148.70M	169.88M	170.00M	176.32M	187.50M
Cash, Cash Equivalents and Short-Term Investments	26.91M	54.72M	55.30M	104.09M	111.08M	118.72M
Total Debt	652.00K	996.00K	1.45M	995.00K	0.00	0.00
Total Liabilities	55.20M	63.57M	73.15M	60.04M	34.13M	46.22M
Stockholders Equity	32.77M	85.13M	96.73M	109.97M	142.19M	141.28M
Cash Flow
Free Cash Flow	-22.92M	-395.00K	-194.00K	22.54M	16.75M	37.64M
Operating Cash Flow	-16.64M	4.72M	4.32M	27.80M	18.50M	40.08M
Investing Cash Flow	-6.28M	-5.11M	-40.67M	-10.26M	-1.75M	-2.43M
Financing Cash Flow	-241.00K	-181.00K	-12.44M	-24.54M	-24.38M	-22.69M

Petmed Express Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.77
• 50DMA: Negative
• 100DMA: Positive
• 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 1.77 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.19, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 65.53 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
ADAG	53 Neutral	$155.06M	-5.03	-63.41%	―	-87.59%	11.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRZN	50 Neutral	$215.06M	-1.23	―	―	-63.96%	-28.50%
LFMD	49 Neutral	$142.00M	-16.95	―	―	30.71%	73.43%
YI	48 Neutral	$71.23M	-7.39	―	―	-7.46%	73.05%
PETS	41 Neutral	$65.91M	-0.96	-100.61%	―	-24.81%	-5344.15%

Petmed Express Corporate Events

PetMed Express Shareholders Approve Directors, Pay and Auditor

At its January 21, 2026 Annual Meeting of Shareholders, PetMed Express reported that 15,506,165 of 21,372,021 eligible shares were represented in person or by proxy, constituting a quorum and allowing the company to conduct official business on the matters presented. Shareholders elected all five board nominees to serve until the next annual meeting, approved on an advisory basis the compensation of the company’s named executive officers, and ratified Baker Tilly US, LLP as the independent registered public accounting firm for fiscal year 2026, reinforcing continuity in governance, executive pay practices, and audit oversight for the company and its stakeholders.

The most recent analyst rating on (PETS) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Petmed Express stock, see the PETS Stock Forecast page.

PetMed Express Extends Shareholder Rights Plan

On November 26, 2025, PetMed Express announced an amendment to its shareholder rights plan, extending its expiration date to December 2, 2026, to protect shareholder investments and prevent control acquisition without a premium. Additionally, the Board approved a salary increase for Douglas Krulik, the Interim Principal Financial Officer, effective August 30, 2025, and entered into a severance agreement with him.

The most recent analyst rating on (PETS) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Petmed Express stock, see the PETS Stock Forecast page.