PETQ - PetIQ: Product Margin Gains Offset By Higher Marketing Spend

2024-07-09 09:43:23 ET

Summary

• Shares have rallied strongly following solid results in Q1.
• Growth from its own-branded products remains strong and improves the company’s overall profitability.
• Valuation appears attractive, but the business faces certain headwinds this year as it deals with a high debt load.

Investment thesis

PetIQ ( PETQ ) has demonstrated strong performance in its products segment, where it distributes pet medication, supplements, and wellness related items through retailers. This includes both PetIQ-branded as well as non-branded products. The company's gross margins have substantially increased in recent quarters as its own branded products have outperformed....

For further details see: