Petco Health and Wellness Company (WOOF) AI Stock Analysis

• Market Cap: $852.01M
• Dividend Yield: N/A
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: -3.85%
• EPS Growth: 97.87%
• Country: US
• Employees: 29,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.04
• Shares Outstanding: 242,466,860
• 10 Day Avg. Volume: 4,663,285
• 30 Day Avg. Volume: 2,902,254
• PEG Ratio: 0.10
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 18.82
• Enterprise Value/Market Cap: 4.28
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.61
• Enterprise Value/Ebitda: 11.80
• 1Y Price Target: $3.92
• Price Target Upside: 28.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $5.96B

• Rating: 54 Neutral
• Price Target: $3.50 ▲(15.13% Upside)

Petco's overall stock score reflects a challenging financial environment with declining revenues and profitability issues. However, improvements in cash flow and profitability, as highlighted in the earnings call, provide a positive outlook. The technical indicators suggest mixed momentum, and the valuation is negatively impacted by unprofitability.

Positive Factors

Improved Profitability

The increase in operating income and adjusted EBITDA indicates enhanced profitability, reflecting effective cost management and operational efficiency improvements.

Services Segment Growth

Growth in the services segment suggests a strong competitive advantage and diversification, enhancing Petco's market position and revenue stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, supporting strategic investments and debt reduction, crucial for long-term sustainability.

Negative Factors

Declining Net Sales

Declining net sales indicate challenges in maintaining market share and revenue growth, potentially impacting long-term profitability and competitive positioning.

Impact of Tariffs

Increased tariffs raise costs, potentially squeezing margins and affecting pricing strategies, which could hinder profitability if not managed effectively.

Store Closures

Store closures may reduce market presence and limit growth opportunities, reflecting strategic shifts that could impact revenue and brand strength.

Petco Health and Wellness Company Business Overview & Revenue Model

Company Description

Petco Health and Wellness Company, Inc. (WOOF) is a leading pet health and wellness retailer based in the United States, offering a wide variety of products and services for pet owners. The company operates in several sectors, including retail, veterinary services, and pet insurance. Petco provides an extensive range of pet food, supplies, and accessories, along with grooming, training, and veterinary care services, all aimed at promoting the health and well-being of pets.

How the Company Makes Money

Petco generates revenue through multiple key streams, primarily from the sale of pet food and supplies in its retail stores and e-commerce platform. The company also earns significant income from its veterinary services, including routine check-ups, vaccinations, and other medical care provided at its in-store clinics. Additionally, Petco offers pet insurance plans through partnerships with insurance providers, which contributes to its revenue. The company has engaged in various partnerships and collaborations to enhance its service offerings and expand its market reach, further solidifying its financial performance.

Petco Health and Wellness Company Financial Statement Overview

Summary

Petco faces financial challenges with declining revenues and profitability issues. Despite a negative net profit margin and return on equity, the company has improved its debt-to-equity ratio and shown strong cash flow generation. Continued focus on operational efficiency and revenue growth is crucial.

Income Statement

Petco's income statement reveals a challenging financial environment. The TTM data shows a negative net profit margin of -0.04%, indicating the company is currently unprofitable. Revenue has declined by 7.78% in the TTM period, reflecting a downturn in sales. However, the gross profit margin remains relatively stable at 38.57%, suggesting some resilience in cost management. The EBIT and EBITDA margins are low, at 1.32% and 4.29% respectively, indicating limited operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.20 in the TTM, which is an improvement from the previous year's 2.66, indicating a reduction in leverage. However, the return on equity is negative at -0.19%, reflecting ongoing profitability challenges. The equity ratio stands at 22.24%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Petco's cash flow statement indicates some positive trends, with a significant free cash flow growth rate of 120.89% in the TTM, suggesting improved cash generation. The operating cash flow to net income ratio is 0.17, indicating that cash flow from operations is covering net losses. The free cash flow to net income ratio is 0.31, showing that the company is generating cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.00B	6.12B	6.26B	6.04B	5.81B	4.92B
Gross Profit	2.26B	2.32B	2.35B	2.43B	2.43B	2.11B
EBITDA	309.21M	7.05M	-971.83M	407.75M	452.22M	352.36M
Net Income	-2.20M	-101.82M	-1.28B	90.80M	164.42M	-26.48M
Balance Sheet
Total Assets	5.21B	5.19B	5.36B	6.61B	6.50B	6.08B
Cash, Cash Equivalents and Short-Term Investments	237.41M	165.76M	125.43M	201.90M	211.60M	111.40M
Total Debt	1.39B	2.96B	3.04B	3.13B	3.05B	3.00B
Total Liabilities	4.05B	4.08B	4.18B	4.23B	4.24B	4.02B
Stockholders Equity	1.16B	1.11B	1.18B	2.38B	2.27B	2.07B
Cash Flow
Free Cash Flow	129.61M	49.68M	-9.88M	67.98M	119.11M	109.06M
Operating Cash Flow	256.52M	177.67M	215.72M	346.00M	358.21M	268.62M
Investing Cash Flow	-121.82M	-123.90M	-207.44M	-320.32M	-237.08M	-157.19M
Financing Cash Flow	-6.30M	-8.75M	-85.35M	-33.84M	-18.78M	-146.61M

Petco Health and Wellness Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOOF, the sentiment is Neutral. The current price of 3.04 is above the 20-day moving average (MA) of 3.01, below the 50-day MA of 3.37, and below the 200-day MA of 3.17, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 51.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WOOF.

Petco Health and Wellness Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WOOF	54 Neutral	$852.01M	―	-0.19%	―	-3.85%	97.87%
CHWY	54 Neutral	$14.42B	98.11	34.48%	―	9.04%	-56.79%
NHTC	48 Neutral	$50.43M	144.55	-0.38%	26.67%	-5.07%	-115.50%
BARK	47 Neutral	$116.55M	―	-33.59%	―	-7.61%	-18.41%
TDUP	45 Neutral	$927.30M	―	-35.37%	―	-4.90%	50.77%
FLWS	43 Neutral	$217.10M	―	-67.22%	―	-8.07%	-2206.16%

Petco Health and Wellness Company Corporate Events

Petco Reports Improved Profitability Amid Sales Decline

Petco Health and Wellness Company Inc., a leading retailer in the pet care industry, offers a wide range of products and services for pet owners across the U.S., Mexico, and Puerto Rico, with a strong focus on nurturing the pet-human bond through its extensive store network and online platforms.

Petco Revises Fiscal 2025 Earnings Outlook Upward

On November 25, 2025, Petco announced its third-quarter financial results, reporting a 3.1% year-over-year decrease in net sales to $1.5 billion, in line with its outlook. Despite the sales decline, Petco improved its gross profit margin and operating income, and increased its adjusted EBITDA. The company revised its fiscal 2025 earnings outlook upward, indicating a strengthened economic model and setting the stage for growth in 2026. Petco’s strategic focus on profitability and operational transformation is expected to enhance its competitive positioning and stakeholder value.

The most recent analyst rating on (WOOF) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Petco Health and Wellness Company stock, see the WOOF Stock Forecast page.

Petco Earnings Call: Profitability Up, Sales Challenges Loom

Petco Health and Wellness Company Inc. recently held its earnings call, revealing a balanced sentiment between internal improvements and external challenges. The company showcased significant strides in profitability and operational efficiency, yet faces hurdles in achieving top-line growth amid tough sales comparisons and tariff impacts in the latter half of the year.

Petco Reports Q2 2025 Financial Results and Raises Outlook

Petco Health and Wellness Company Inc., a leading retailer in the pet care industry, offers a wide range of products and services for pet owners across the U.S., Mexico, and Puerto Rico. The company is known for its extensive selection of pet supplies, expert support, and commitment to animal welfare.

Petco Reports Q2 2025 Financial Results

Petco announced its financial results for the second quarter of 2025, reporting net sales of $1.5 billion, a 2.3% decrease year over year, and a gross profit margin increase to 39.3%. Despite the decline in sales, the company improved its operating income and net income, leading to an increased earnings outlook for the fiscal year 2025. Petco plans to continue its strategic investments to drive sustainable growth and maintain its competitive position in the market.

The most recent analyst rating on (WOOF) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Petco Health and Wellness Company stock, see the WOOF Stock Forecast page.