Petmed Express (PETS) AI Stock Analysis

• Market Cap: $68.17M
• Dividend Yield: N/A
• Average Volume (3M): 214.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -24.81%
• EPS Growth: -5344.15%
• Country: US
• Employees: 287
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): N/A
• Shares Outstanding: 21,369,520
• 10 Day Avg. Volume: 122,267
• 30 Day Avg. Volume: 214,700
• 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: 0.48
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 0.56
• Enterprise Value/Ebitda: -0.84
• 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: 50 Neutral
• Price Target: $3.50 ▲(97.74% Upside)

The score is primarily held back by weak financial performance (declining revenue, losses, and cash-flow inefficiencies) and a negative P/E tied to unprofitability, partially offset by a technically improved price trend above major moving averages. Corporate events add incremental risk due to Nasdaq filing non-compliance.

Positive Factors

Recurring e-commerce pet pharmacy model

An online platform centered on prescription and OTC pet meds with recurring monthly purchases supports predictable, repeatable revenue and higher customer lifetime value. Durable demand for preventive treatments helps stabilize sales and marketing efficiency over multi-quarter horizons.

Very low financial leverage

Extremely low debt reduces interest burden and financial distress risk, giving management flexibility to fund operations, invest in technology or supply inventory from operating cash. This balance sheet strength supports resilience through revenue cyclicality and execution of multi-quarter strategic initiatives.

Veterinarian partnerships for prescription fulfillment

Formal partnerships with veterinarians create a structural distribution advantage and prescription access barrier to entry. Those relationships improve customer acquisition and retention for prescription products, supporting stable refill volumes and a defensible market position over successive quarters.

Negative Factors

Declining revenue and negative margins

Sustained revenue contraction and negative operating/profit margins signal weakening core economics that impair reinvestment and margin recovery. If trends persist, scale advantages erode, limiting ability to fund marketing, platform improvements, or competitive pricing across multiple quarters.

Cash-flow volatility and negative FCF conversion

Volatile and negative free cash flow conversion reduces internal funding for growth, dividends, or buybacks and raises reliance on external financing. Over months this constrains strategic flexibility, slows investment in retention or tech, and elevates refinancing or liquidity risk if profitability doesn't improve.

Nasdaq compliance notice for delayed filings

Regulatory non-compliance highlights operational or reporting control weaknesses and can distract management, impair investor confidence, and risk escalated listing actions if not resolved. Persistent reporting deficiencies would materially hamper capital market access and long-term strategic options.

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 weakness (TTM revenue decline of -7.23% and negative net profit/EBIT margins) and cash-flow challenges (volatile/inefficient cash conversion and negative free cash flow to net income ratio) outweigh the balance sheet strength of very low leverage (debt-to-equity 0.0117). Negative ROE reinforces profitability pressure.

Income Statement

Petmed Express has experienced a decline in revenue growth, with a negative growth rate of -7.23% in the TTM period. The company is facing challenges with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin remains moderate at 29.70%, but the overall income statement reflects financial struggles, particularly in maintaining profitability.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.0117, indicating minimal leverage, which is a positive aspect. However, the return on equity is negative, reflecting the company's inability to generate profit from its equity base. The equity ratio stands at 42.94%, suggesting a stable capital structure, but the negative ROE highlights profitability concerns.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow, with a growth rate of 611.79% in the TTM period, indicating volatility. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is negative, further emphasizing cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	194.99M	226.97M	274.10M	256.58M	273.42M	303.58M
Gross Profit	58.39M	69.14M	77.71M	71.01M	75.34M	84.32M
EBITDA	-39.18M	6.71M	783.00K	10.99M	29.81M	32.96M
Net Income	-55.02M	-6.27M	-7.46M	5.14M	21.10M	23.92M
Balance Sheet
Total Assets	100.30M	148.70M	169.88M	170.00M	176.32M	187.50M
Cash, Cash Equivalents and Short-Term Investments	36.10M	54.72M	55.30M	104.09M	111.08M	118.72M
Total Debt	768.00K	996.00K	1.45M	995.00K	0.00	0.00
Total Liabilities	57.24M	63.57M	73.15M	60.04M	34.13M	46.22M
Stockholders Equity	43.06M	85.13M	96.73M	109.97M	142.19M	141.28M
Cash Flow
Free Cash Flow	-33.87M	-395.00K	-194.00K	22.54M	16.75M	37.64M
Operating Cash Flow	-27.88M	4.72M	4.32M	27.80M	18.50M	40.08M
Investing Cash Flow	-5.99M	-5.11M	-40.67M	-10.26M	-1.75M	-2.43M
Financing Cash Flow	-292.00K	-181.00K	-12.44M	-24.54M	-24.38M	-22.69M

Petmed Express Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PETS, the sentiment is Neutral. The current price of 1.77 is below the 20-day moving average (MA) of 3.34, below the 50-day MA of 2.83, and below the 200-day MA of 3.06, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$129.61M	-4.27	-63.41%	―	-87.59%	11.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PETS	50 Neutral	$68.17M	-1.20	-78.89%	―	-24.81%	-5344.15%
SRZN	50 Neutral	$184.67M	-0.99	―	―	-63.96%	-28.50%
LFMD	49 Neutral	$155.96M	-18.94	―	―	30.71%	73.43%
YI	48 Neutral	$63.10M	-6.52	―	―	-7.46%	73.05%

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.

PetMed Express Faces Nasdaq Compliance Notice

PetMed Express, Inc. announced on November 13, 2025, that it received a notice from Nasdaq due to delays in filing its quarterly reports for periods ending June 30 and September 30, 2025. This non-compliance with Nasdaq’s listing rules requires the company to update its compliance plan by November 28, 2025. The notice does not immediately affect the company’s stock listing, and PetMed is working to complete the filings promptly. Additionally, preliminary second-quarter results indicate a decline in net sales compared to the previous year, with estimated sales ranging from $43.4 million to $44.5 million.

The most recent analyst rating on (PETS) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Petmed Express stock, see the PETS Stock Forecast page.