(WOOF) Pet Acquisition - Overview
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NASDAQ (USA) | Market Cap: 857m USD | Total Return: -22.9% in 12m
Avg Turnover: 4.12M
Qual. Beats: -1
Rev. Trend: -67.8%
Qual. Beats: 0
Warnings
P/E ratio 88.3
High Debt/EBITDA (12.4) with thin interest coverage (0.9)
Interest Coverage Ratio 0.9 is critical
Altman Z'' -1.00 < 1.0 - financial distress zone
Choppy
Tailwinds
No distinct edge detected
Petco Health and Wellness Company, Inc. (WOOF) is a specialty retailer providing veterinary care, grooming, training, and pet supplies across the United States, Mexico, Puerto Rico, and Chile. The company operates an omni-channel model, integrating physical storefronts with e-commerce platforms and mobile applications. Its product portfolio includes proprietary brands such as WholeHearted and Reddy, covering consumables and durable supplies.
The business model focuses on pet humanization, a sector trend where owners treat pets as family members, leading to increased spending on high-margin services and premium nutrition. Unlike general retailers, specialty pet providers benefit from recurring revenue streams generated by essential healthcare services and subscription-based grooming programs. To better understand the companys valuation metrics and growth drivers, investors can review comprehensive data on ValueRay. Petco remains headquartered in San Diego, California, maintaining a market presence established since its founding in 1965.
- Expansion of high-margin veterinary and grooming services drives recurring revenue growth
- Elevated debt levels and interest expenses impact net income and valuation
- Shift toward premium private label brands improves gross margins and differentiation
- Consumer trade-down to value channels pressures discretionary pet supply sales volume
- Integration of omnichannel digital platforms determines market share against online competitors
| Net Income: 9.07m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 4.57 > 1.0 |
| NWC/Revenue: -1.92% < 20% (prev -2.71%; Δ 0.79% < -1%) |
| CFO/TA 0.08 > 3% & CFO 404.1m > Net Income 9.07m |
| Net Debt (3.98b) to EBITDA (320.5m): 12.42 < 3 |
| Current Ratio: 0.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (281.2m) vs 12m ago 1.78% < -2% |
| Gross Margin: 38.67% > 18% (prev 0.36%; Δ 3.83k% > 0.5%) |
| Asset Turnover: 115.0% > 50% (prev 117.8%; Δ -2.75% > 0%) |
| Interest Coverage Ratio: 0.95 > 6 (EBITDA TTM 320.5m / Interest Expense TTM 131.2m) |
| A: -0.02 (Total Current Assets 1.02b - Total Current Liabilities 1.13b) / Total Assets 5.17b |
| B: -0.22 (Retained Earnings -1.14b / Total Assets 5.17b) |
| C: 0.02 (EBIT TTM 124.5m / Avg Total Assets 5.18b) |
| D: -0.29 (Book Value of Equity -1.15b / Total Liabilities 4.01b) |
| Altman-Z'' = -1.00 = CCC |
| DSRI: 1.16 (Receivables 45.8m/40.4m, Revenue 5.96b/6.12b) |
| GMI: 0.94 (GM 38.67% / 36.36%) |
| AQI: 1.01 (AQ_t 0.43 / AQ_t-1 0.42) |
| SGI: 0.97 (Revenue 5.96b / 6.12b) |
| TATA: -0.08 (NI 9.07m - CFO 404.1m) / TA 5.17b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 2.76 with a total of 1,400,540 shares traded.
Over the past week, the price has changed by +8.24%,
over one month by -6.76%,
over three months by +8.66% and
over the past year by -22.91%.
Pet Acquisition has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold WOOF.
- StrongBuy: 0
- Buy: 2
- Hold: 8
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 3.5 | 27.5% |
P/E Trailing = 88.3333
P/E Forward = 11.0375
P/S = 0.1437
P/B = 0.7359
Revenue TTM = 5.96b USD
EBIT TTM = 124.5m USD
EBITDA TTM = 320.5m USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 324.7m USD (from shortTermDebt, last quarter)
Debt = 4.24b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.38b
Net Debt = 3.98b USD (calculated: Debt 4.24b - CCE 256.7m)
Enterprise Value = 4.84b USD (856.8m + Debt 4.24b - CCE 256.7m)
Interest Coverage Ratio = 0.95 (Ebit TTM 124.5m / Interest Expense TTM 131.2m)
EV/FCF = 16.93x (Enterprise Value 4.84b / FCF TTM 285.8m)
FCF Yield = 5.91% (FCF TTM 285.8m / Enterprise Value 4.84b)
FCF Margin = 4.79% (FCF TTM 285.8m / Revenue TTM 5.96b)
Net Margin = 0.15% (Net Income TTM 9.07m / Revenue TTM 5.96b)
Gross Margin = 38.67% ((Revenue TTM 5.96b - Cost of Revenue TTM 3.66b) / Revenue TTM)
Gross Margin QoQ = 38.33% (prev 38.86%)
Tobins Q-Ratio = 0.94 (Enterprise Value 4.84b / Total Assets 5.17b)
Interest Expense / Debt = 3.10% (Interest Expense 131.2m / Debt 4.24b)
Taxrate = 40.87% (6.27m / 15.3m)
NOPAT = 73.6m (EBIT 124.5m * (1 - 40.87%))
Current Ratio = 0.90 (Total Current Assets 1.02b / Total Current Liabilities 1.13b)
Debt / Equity = 3.64 (Debt 4.24b / totalStockholderEquity, last quarter 1.16b)
Debt / EBITDA = 12.42 (Net Debt 3.98b / EBITDA 320.5m)
Debt / FCF = 13.93 (Net Debt 3.98b / FCF TTM 285.8m)
Total Stockholder Equity = 1.14b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.17% (Net Income 9.07m / Total Assets 5.17b)
RoE = 0.40% (Net Income TTM 9.07m / Total Stockholder Equity 2.28b)
RoCE = 3.30% (EBIT 124.5m / Capital Employed (Equity 2.28b + L.T.Debt 1.49b))
RoIC = 1.69% (NOPAT 73.6m / Invested Capital 4.36b)
WACC = 3.53% (E(856.8m)/V(5.09b) * Re(11.94%) + D(4.24b)/V(5.09b) * Rd(3.10%) * (1-Tc(0.41)))
Discount Rate = 11.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 2.19%
[DCF] Terminal Value 77.97% ; FCFF base≈191.3m ; Y1≈219.3m ; Y5≈322.8m
[DCF] Fair Price = 3.54 (EV 4.86b - Net Debt 3.98b = Equity 877.0m / Shares 247.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.30 | # QB: -1
Revenue Correlation: -67.77 | Revenue CAGR: -1.18% | SUE: 0.41 | # QB: 0
EPS current Quarter (2026-07-31): EPS=0.08 | Chg30d=+0.00% | Revisions=+0% | Analysts=4
EPS current Year (2027-01-31): EPS=0.23 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+20.7% | GrowthRev=+0.5%
EPS next Year (2028-01-31): EPS=0.25 | Chg30d=+0.00% | Revisions=+20% | GrowthEPS=+10.4% | GrowthRev=+1.6%
[Analyst] Revisions Ratio: +25%