Pet Valu Holdings Ltd. (PET) AI Stock Analysis

• Market Cap: C$2.21B
• Dividend Yield: 1.46%
• Average Volume (3M): 147.03K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.45
• Revenue Growth: 4.61%
• EPS Growth: 3.95%
• Country: CA
• Employees: 2,086
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Specialty Retail
• EPS (TTM): 0.36
• Shares Outstanding: 70,302,640
• 10 Day Avg. Volume: 204,154
• 30 Day Avg. Volume: 147,031
• PEG Ratio: 26.34
• Price to Book (P/B): 19.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$34.50
• Price Target Upside: 10.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: C$36.00 ▲(15.76%Upside)

Pet Valu Holdings Ltd. scores well due to strong technical momentum and financial performance. The positive corporate events boost the outlook, though high leverage and a potentially overvalued stock temper enthusiasm. The absence of earnings call data limits further insights.

Positive Factors

Earnings Growth

PET is well-positioned to achieve low-double-digit EPS growth over the long term despite continued macro pressures.

Market Position

PET remains disciplined and will focus on targeted promotions geared toward high-value, loyal customers.

Negative Factors

Competitive Pressure

Promotional pressures and competition remain intense going into the holiday season.

Macroeconomic Challenges

The timing for macroeconomic and consumer improvement is now further delayed to 2H25.

Pet Valu Holdings Ltd. Business Overview & Revenue Model

Company Description

Pet Valu Holdings Ltd. engages in the retail and wholesale of pet foods, treats, toys, and accessories in Canada. The company offers its products for dogs, cats, fish, birds, reptiles, and small pets. It also provides bones and chews, collars and leashes, fleas and ticks, health and wellness, pet cages and carriers, dog and cat toys, litters and accessories, dental care, crates, pens and gates, wild bird products, and other pet-related accessories; and grooming and adoption services for pets, as well as operates dog-wash stations. Its brand portfolio includes Performatrin, Performatrin Ultra, Performatrin Ultra Limited, Performatrin Naturals, Lovibles, Barker's, Bailey & Bella, Jump, Fresh4Life, and other brands. As of August 9, 2022, the company had 700 corporate-owned or franchised locations. Pet Valu Holdings Ltd. was founded in 1976 and is headquartered in Markham, Canada.

How the Company Makes Money

Pet Valu Holdings Ltd. generates revenue primarily through the sale of pet food and pet-related products in its retail stores. The company's revenue model is built on both corporate-owned and franchised stores, allowing it to expand its market presence while reducing operational risks. Key revenue streams include sales of premium pet food brands, proprietary brands, and a wide assortment of ancillary pet products such as toys, health and wellness items, and grooming supplies. The company also benefits from strategic partnerships with leading pet product manufacturers, which help in expanding its product offerings and enhancing customer loyalty. Additionally, franchising fees and royalties from franchise-operated stores contribute to the company’s revenue. Pet Valu's focus on customer service and community engagement through local events and educational programs further supports its strong market position.

Pet Valu Holdings Ltd. Financial Statement Overview

Summary

Pet Valu Holdings Ltd. presents a solid financial performance with consistent revenue growth and strong cash flow generation. While the company maintains healthy profitability margins, high leverage poses potential risks. The company has improved its equity position, although it still relies heavily on debt financing.

Income Statement

Pet Valu Holdings Ltd. shows a consistent revenue growth trend with a 3.91% increase from 2023 to 2024. Gross profit margin decreased slightly from 34.58% in 2023 to 33.23% in 2024, while the net profit margin remained stable at around 7.97% in 2024, down slightly from 8.48% in 2023. EBIT and EBITDA margins are healthy, indicating good operational efficiency. However, the slight dip in EBIT margin from 15.70% in 2023 to 14.16% in 2024 reflects increased operational costs.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio of 7.82 in 2024, up from 10.57 in 2023, indicating significant reliance on debt financing. The return on equity (ROE) is strong at 91.31% in 2024, reflecting efficient use of equity to generate profits. The equity ratio improved to 9.86% in 2024 from 7.60% in 2023, showing a slight increase in equity proportion within the total assets.

Cash Flow

Pet Valu Holdings Ltd. demonstrates robust cash flow management with a 84.87% increase in free cash flow in 2024 compared to 2023. The operating cash flow to net income ratio of 2.29 in 2024 signifies strong cash generation relative to net income. The free cash flow to net income ratio improved to 1.53 in 2024, highlighting the company's ability to convert net income into free cash flow effectively.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.10B	1.06B	951.70M	776.01M	648.46M
	Gross Profit
364.64M	365.14M	352.30M	287.18M	230.63M
	EBIT
155.32M	165.73M	160.19M	129.41M	102.68M
	EBITDA
231.16M	215.41M	206.12M	206.78M	136.13M
	Net Income Common Stockholders
87.42M	89.55M	100.77M	95.36M	28.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.14M	28.44M	63.03M	50.07M	71.48M
	Total Assets
970.93M	916.91M	740.18M	599.17M	562.12M
	Total Debt
749.29M	737.13M	605.11M	584.41M	923.02M
	Net Debt
714.15M	708.68M	542.08M	534.34M	851.54M
	Total Liabilities
875.18M	847.19M	739.80M	693.70M	1.03B
	Stockholders Equity
95.75M	69.72M	376.00K	-94.52M	-588.53M
Cash Flow		Free Cash Flow
133.42M	72.17M	79.11M	109.70M	131.02M
	Operating Cash Flow
200.08M	135.34M	123.52M	138.16M	152.14M
	Investing Cash Flow
-8.52M	-16.15M	-17.32M	3.99M	11.55M
	Financing Cash Flow
-183.82M	-153.78M	-92.80M	-163.34M	-135.90M

Pet Valu Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PET, the sentiment is Positive. The current price of 31.1 is above the 20-day moving average (MA) of 30.02, above the 50-day MA of 27.92, and above the 200-day MA of 25.93, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 79.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PET.

Pet Valu Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PET	78 Outperform	C$2.21B	24.49	99.31%	1.46%	4.61%	3.95%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
CDNTF		$7.27B	17.02	14.70%	2.70%	―	―
CDNAF		$7.27B	11.73	14.70%	3.92%	―	―

Pet Valu Holdings Ltd. Corporate Events

Pet Valu Announces C$576 Million Secondary Offering, Ending Roark Capital’s Stake

Pet Valu Holdings Ltd. announced a C$576 million secondary bought deal offering, with the proceeds going to the selling shareholders, Roark Capital Partners and others. This transaction marks the end of Roark’s ownership in Pet Valu, terminating their investor rights agreement and resulting in changes to the board of directors. The company, under CEO Richard Maltsbarger, is well-positioned to continue its growth trajectory with a strong omni-channel presence and modernized supply chain.

The most recent analyst rating on (TSE:PET) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Pet Valu Holdings Ltd. stock, see the TSE:PET Stock Forecast page.

Pet Valu Completes C$22.5 Million Over-Allotment Option

Pet Valu Holdings Ltd. announced the successful closing of a C$22.5 million over-allotment option as part of a secondary bought deal offering, which involved the sale of 780,000 additional common shares. The total gross proceeds from this offering, including the over-allotment, amounted to approximately C$172.5 million, benefiting the selling shareholders. The company itself did not receive any proceeds from this transaction. Following the offering, the selling shareholders collectively own about 29% of the outstanding common shares. This financial maneuver, led by a syndicate of underwriters, underscores Pet Valu’s robust market presence and strategic financial positioning.

The most recent analyst rating on (TSE:PET) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Pet Valu Holdings Ltd. stock, see the TSE:PET Stock Forecast page.

Pet Valu Completes C$150 Million Share Offering

Pet Valu Holdings Ltd. has completed a secondary bought deal offering, raising approximately C$150 million through the sale of 5.2 million common shares by its selling shareholders. This transaction, which did not provide proceeds to the company itself, reduces the selling shareholders’ stake to about 30% of the outstanding shares, potentially impacting their influence and the company’s market dynamics.

The most recent analyst rating on (TSE:PET) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Pet Valu Holdings Ltd. stock, see the TSE:PET Stock Forecast page.

Pet Valu Announces Strategic Share Repurchase and Secondary Offering

Pet Valu Holdings Ltd. announced the repurchase of 2,079,000 common shares from its selling shareholders at a discount, funded through cash and available credit. This strategic move, approved by a special committee of independent directors, is not expected to negatively impact the company’s market price or financial condition. Additionally, the selling shareholders have agreed to a secondary offering of 5.2 million common shares, which will result in them holding approximately 30% of the company’s outstanding shares.

The most recent analyst rating on (TSE:PET) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Pet Valu Holdings Ltd. stock, see the TSE:PET Stock Forecast page.

Pet Valu Announces C$150 Million Secondary Offering and Share Repurchase

Pet Valu Holdings Ltd. announced a C$150 million secondary bought deal offering, with the selling shareholders entering an agreement with a syndicate of underwriters led by RBC Dominion Securities Inc. The offering involves the sale of 5.2 million common shares at C$28.85 each, with the proceeds going directly to the selling shareholders. The company will not receive any proceeds from this offering. Additionally, Pet Valu has repurchased 2,079,000 common shares from the selling shareholders. Following these transactions, the selling shareholders will own approximately 30% of the company’s outstanding shares. This move is expected to impact the company’s share distribution and may influence its market positioning.

The most recent analyst rating on (TSE:PET) stock is a Buy with a C$33.00 price target. To see the full list of analyst forecasts on Pet Valu Holdings Ltd. stock, see the TSE:PET Stock Forecast page.

Pet Valu Reports Strong Start to 2025 with Revenue Growth and Strategic Expansion

Pet Valu Holdings Ltd. reported a positive start to 2025 with a 1.4% growth in same-store sales and a 7% increase in revenue for the first quarter. The company opened seven new stores, bringing the total to 830, and declared a dividend of $0.12 per share. The CEO highlighted the effective commercial plan and strong in-store execution as key drivers of growth. The company remains focused on strategic investments to support long-term growth and profitability, despite challenges such as increased SG&A expenses and a slight decrease in gross profit margin.