PetMed Express, Inc.
PetMed Express, Inc. (NASDAQ: PETS) is a leading pet pharmacy with locations across the country. Prescription and non-prescription pet pharmaceuticals, health items, and supplies for dogs, cats, and horses are sold directly to consumers by the company. It promotes its goods through national advertising campaigns to increase brand awareness, increase traffic to the company's website at www.petmeds.com, acquire new consumers, and increase repeat purchases.
Why should Investors make an Exit?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
PETS share price has been on a bearish trend throughout the year, fallen 24.26% in the past twelve months and is currently trading at the lower band of the 52-week range of USD 21.64 to USD 46.67. We have valued the stock using the EV/Sales based relative valuation methodology and arrived at a target price of USD 22.40.
Considering the decline in topline and bottom-line numbers, industry lagging margins, collapse in return metrics, current valuation, and bearish technical indicators, we recommend a "Sell" rating on the stock at the current price of USD 25.88, up 1.37%, as of April 05, 2022, at 6:53 AM PDT.
Three-Year Technical Price Chart (as of April 05, 2022, at 6:53 AM PDT). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.