Petmed Express (PETS)
NASDAQ:PETS
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Petmed Express
(NASDAQ:PETS)
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Rating:41Neutral
Price Target:
$2.00
▲(12.99% Upside)
Action:ReiteratedDate: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
Very low financial leverage
Near-zero debt materially lowers solvency and refinancing risk, giving management flexibility to restructure operations or raise capital without heavy interest burdens. This balance sheet conservatism is a durable buffer while the company addresses operating weakness.
Negative Factors
Sharp profitability deterioration
A swing to a deep net loss and contracting revenue signals a broken earnings engine: core demand or pricing has weakened while fixed costs remain. Persistent negative margins erode reinvestment capacity and threaten the long-term viability of existing operating scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low financial leverage
Near-zero debt materially lowers solvency and refinancing risk, giving management flexibility to restructure operations or raise capital without heavy interest burdens. This balance sheet conservatism is a durable buffer while the company addresses operating weakness.
Read all positive factors
Petmed Express (PETS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.94M
Dividend YieldN/A
Average Volume (3M)83.39K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-26.05%
EPS Growth-19236.81%
CountryUS
Employees287
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)-0.50
Shares Outstanding21,400,496
10 Day Avg. Volume83,849
30 Day Avg. Volume83,390
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)1.01
Price to Sales (P/S)0.38
P/FCF Ratio-218.47
Enterprise Value/Market Cap0.46
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.42
Enterprise Value/Ebitda-0.46
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.01
Revenue Forecast (FY)$204.99M
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...
How the Company Makes Money
PetMed Express makes money primarily by selling pet medications and health-related products directly to consumers through its e-commerce storefront. Revenue is generated on a per-order basis from (1) prescription medications, where the company dis...
Petmed Express Earnings Call Summary
Earnings Call Date:Feb 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in cost optimization and digital enhancements, but these were overshadowed by a notable decline in revenue and challenges in a competitive market environment. The company is focused on long-term growth and profitability, yet immediate challenges remain.Positive Updates
Return to Profitability
The company implemented cost-cutting measures and consolidation strategies, achieving $2 million in adjusted EBITDA, a $1.1 million improvement year-over-year, while lowering G&A expenses by $2.6 million compared to last year.
Negative Updates
Revenue Decline
Net sales for the third quarter were $53 million, compared to $65.3 million in the same period last year, marking a 19% decline primarily due to a 34% reduction in gross advertising.
Read all updates
Q3-2025 Updates
Positive
Negative
Return to Profitability
The company implemented cost-cutting measures and consolidation strategies, achieving $2 million in adjusted EBITDA, a $1.1 million improvement year-over-year, while lowering G&A expenses by $2.6 million compared to last year.
Read all positive updates
Company Guidance
During the PetMed Express Third Quarter Financial Results Conference Call for fiscal year 2025, CEO Sandra Campos outlined the company's strategic initiatives aimed at returning to profitability and driving sustainable growth. Key metrics highlighted include achieving $2 million in adjusted EBITDA for the quarter, a $1.1 million year-over-year improvement, and a reduction in G&A expenses by $2.6 million compared to last year. The company also reported 63,000 new customers with shipped orders and an increase in the average order value (AOV) by 7% to $108. Inventory efficiency improved, with inventory turn rising to 1.5 in Q3, alongside a 66% reduction in total inventory on hand. The company is focusing on enhancing the digital shopping experience, optimizing their product mix, and improving operational efficiencies. Despite a challenging competitive landscape, PetMed remains committed to customer engagement and financial discipline, as evidenced by a deliberate reduction in gross advertising spend by $2.8 million year-over-year to protect margins.Petmed Express Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
55
Neutral
Cash Flow
18
Very Negative
| 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
Negative
1.77
Price Trends
2.58
Negative
2.74
Negative
2.80
Negative
Market Momentum
-0.07
Negative
41.94
Neutral
49.33
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 2.31, below the 50-day MA of 2.58, and below the 200-day MA of 2.80, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 49.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PETS.
Petmed Express Risk Analysis
Petmed Express disclosed 33 risk factors in its most recent earnings report. Petmed Express reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Petmed Express Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $224.52M | -21.66 | -117.74% | ― | 10.59% | 63.27% | |
56 Neutral | $383.66M | -0.70 | 610.83% | ― | -67.37% | -74.49% | |
53 Neutral | $174.38M | -4.05 | -48.20% | ― | 7336.90% | 49.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $53.59M | -9.25 | 8.26% | ― | -12.80% | -1.34% | |
41 Neutral | $47.94M | -1.59 | -122.10% | ― | -26.05% | -19236.81% |
* Healthcare Sector Average
PETS
Petmed Express
2.30
-1.32
-36.46%
YI
111
6.00
-2.40
-28.57%
LFMD
LifeMD
5.00
-2.25
-31.03%
SRZN
Surrozen
33.60
23.64
237.35%
ADAG
Adagene
3.82
2.29
149.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.