PetMed Story

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PETS -- USA Stock  

USD 30.09  0.93  3.00%

PetMed Express is scheduled to announce its earnings today. The stock is currently experiencing an active downward rally. PetMed Express Accrued Expenses Turnover is relatively stable at the moment as compared to the past year. PetMed Express reported last year Accrued Expenses Turnover of 86.32. As of 10/26/2020, Operating Margin is likely to grow to 11.60, while Revenue Per Employee is likely to drop slightly above 1.2 M. As many investors are getting excited about healthcare space, it is fair to sum up PetMed Express as an investment option. We will evaluate why recent PetMed Express price moves suggest a bounce in November.
Published over three weeks ago
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Should I drop my PetMed (NASDAQ:PETS) position?
As of 10/26/2020, Debt to Equity Ratio is likely to drop to 0.16. In addition to that, Average Equity is likely to drop to about 130.6 MThe asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. PetMed Express has an asset utilization ratio of 332.68 percent. This connotes that the company is making $3.33 for each dollar of assets. An increasing asset utilization means that PetMed Express is more efficient with each dollar of assets it utilizes for everyday operations.
PetMed Express financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of PetMed Express, including all of PetMed Express's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of PetMed Express assets, the company is considered highly leveraged. Understanding the composition and structure of overall PetMed Express debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding PetMed Total Liabilities

PetMed Express liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. PetMed Express has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on PetMed Express balance sheet include debt obligations and money owed to different PetMed Express vendors, workers, and loan providers. Below is the chart of PetMed short long-term liabilities accounts currently reported on its balance sheet.
You can use PetMed Express financial leverage analysis tool to get a better grip on understanding its financial position

How important is PetMed Express's Liquidity

PetMed Express financial leverage refers to using borrowed capital as a funding source to finance PetMed Express ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PetMed Express financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between PetMed Express's total debt and its cash.

What is driving PetMed Express Investor Appetite?

This firm reported the previous year's revenue of 300.34 M. Net Income was 28.28 M with profit before overhead, payroll, taxes, and interest of 81.25 M.

Asset Breakdown

26.3 M
Assets Non Current
106.1 M
Current Assets
Total Assets127.05 Million
Current Assets106.13 Million
Assets Non Current26.26 Million
Goodwill1.02 Million
Tax Assets747,965

Will PetMed Express continue to go crazy?

Latest information ratio is at -0.13. PetMed Express is displaying above-average volatility over the selected time horizon. Investors should scrutinize PetMed Express independently to ensure intended market timing strategies are aligned with expectations about PetMed Express volatility.

Our Conclusion on PetMed Express

While other entities in the pharmaceutical retailers industry are either recovering or due for a correction, PetMed Express may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 26th of October 2020, our analysis shows that PetMed Express very regressive towards the market. The enterprise is fairly valued and projects low probability of distress for the next 2 years. Our primary 30 days buy vs. sell advice on the enterprise is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of PetMed Express. Please refer to our Terms of Use for any information regarding our disclosure principles.

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