ZTS - PetIQ Trupanion: Pet Care Industry Small Players Still Not Cheap Enough

• The overall Pet Care industry is growing steadily, fueled by the “pet humanization” megatrend.
• Big players have widely benefited from this industry expansion and now have strong control over its dynamics.
• Pure small players still struggle in finding a successful path towards profitability, but their valuations are still very high.
• Both PETQ and TRUP are focusing all their efforts on growth but it happens at the expense of shareholders, in the form of both capital raises and delayed remuneration.
• According to DCF models, the fair price for PETQ and TRUP implies that they are not cheap enough to provide efficient exposure to this industry.

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