Petmed Express Inc (NASDAQ: PETS)

Sector: Healthcare Industry: Pharmaceutical Retailers CIK: 0001040130
Market Cap 63.41 Mn
P/B 1.94
P/E -0.98
P/S 0.35
ROIC (Qtr) -152.91
Div Yield % 0.00
Rev 1y % (Qtr) -21.75
Total Debt (Qtr) 652,000.00
Debt/Equity (Qtr) 0.02
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About

PetMed Express Inc., commonly referred to as PetMeds, operates in the pet health and wellness industry, offering a wide range of products and services under the brand names PetMeds and PetCareRx. The company's main business activities involve the provision of pet medications, food, and supplies, with a strong online presence that extends across North America. PetMeds generates revenue through the sale of prescription and non-prescription medications, food, supplements, and supplies. Its primary products include prescription medications such as...

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Investment thesis

Bull case

  • Healthy cash reserves of 26.91M provide 55.49x coverage of short-term debt 485000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 76.69M provides 117.62x coverage of total debt 652000, indicating robust asset backing and low credit risk.
  • Tangible assets of 76.69M provide exceptional 92.17x coverage of deferred revenue 832000, showing strong service capability backing.
  • Operating cash flow of (16.64M) fully covers other non-current liabilities (569000) by 29.24x, showing strong long-term stability.
  • Free cash flow of (22.92M) provides excellent 790.38x coverage of dividends (29000), indicating sustainable shareholder returns.

Bear case

  • Operating cash flow of (16.64M) provides insufficient coverage of deferred revenue obligations of 832000, which is -20x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (16.64M) shows concerning coverage of stock compensation expenses of 1.69M, with a -9.87 ratio indicating potential earnings quality issues.
  • Free cash flow of (22.92M) provides weak coverage of capital expenditures of 6.28M, with a -3.65 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (16.64M) provides minimal -2.92x coverage of tax expenses of 5.69M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (58.43M) show weak coverage of depreciation charges of 9.03M, with a -6.47 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Pharmaceutical Retailers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HITI High Tide Inc. 193.98 Mn -5.35 0.46 78.46 Mn
2 PETS Petmed Express Inc 63.41 Mn -0.98 0.35 0.65 Mn
3 WGRX Wellgistics Health, Inc. 15.67 Mn -0.20 0.46 29.99 Mn
4 RDGT Ridgetech Inc. 8.37 Mn 0.82 0.07 -
5 HKPD Cellyan Biotechnology Co., Ltd 6.31 Mn -233.33 0.31 -
6 SCNX Scienture Holdings, Inc. 0.98 Mn -0.05 1.50 2.56 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.32 0.47
EV to Cash from Ops. EV/CFO -1.69 5.03
EV to Debt EV to Debt 43.07 8.90
EV to EBIT EV/EBIT -0.48 9.46
EV to EBITDA EV/EBITDA -0.56 3.44
EV to Free Cash Flow [EV/FCF] EV/FCF -1.23 9.08
EV to Market Cap EV to Market Cap 0.44 2.07
EV to Revenue EV/Rev 0.15 1.66
Price to Book Value [P/B] P/B 1.94 1.49
Price to Earnings [P/E] P/E -0.98 -39.85
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -2,236.86 -372.81
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) -78.43 -16.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -58.02 -99.80
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -46.28 115.50
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -21,480.60 -3,924.57
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -764.90 -422.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -3,736.15 -957.55
EBT Growth (1y) % EBT 1y % (Qtr) -3,190.23 -968.58
EPS Growth (1y) % EPS 1y % (Qtr) -31,300.00 -5,744.05
FCF Growth (1y) % FCF 1y % (Qtr) -2,780.82 -541.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -29.42 88.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.08 1.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.49 0.32
Current Ratio Curr Ratio (Qtr) 0.89 1.26
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 1.09
Interest Cover Ratio Int Coverage (Qtr) -78.43 -16.58
Times Interest Earned Times Interest Earned (Qtr) -78.43 -16.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -27.00 -466.75
EBIT Margin % EBIT Margin % (Qtr) -31.99 -473.13
EBT Margin % EBT Margin % (Qtr) -32.40 -581.27
Gross Margin % Gross Margin % (Qtr) 30.20 27.92
Net Profit Margin % Net Margin % (Qtr) -35.50 -568.27