PETQ - White Brook Capital - PetIQ: Guidance And Street Estimates Are Too Conservative
2024-04-20 09:35:00 ET
Summary
- Recent dynamics favor PetIQs more cost effective products and services.
- The Company has been a solid acquirer, initially acquiring large business to expand capability, but more recently finding tuck-in acquisitions that PetIQ can plug into its business.
- White Brook agrees with the Company's focus on growth given the opportunity set ahead, but would like to see focus on investment returns institutionalized in the incentive structure.
- PetIQ should be valued like a high growth consumer packaged goods company that trades at a greater than 2x multiple than PETQ.
The following segment was excerpted from this fund letter.
PetIQ ( PETQ ) Overview
| Consensus |
| 2023 |
| 2024 |
| 2025 |
| EV/Sales |
| 0.7x |
| 0.7x |
| 0.6x |
| EV/GP |
| 3.1x |
| 2.9x |
| 2.7x |
| EV/EBITDA |
| 7.5x |
| 7.1x |
| 6.4x |
| P/E |
| 12.7x |
| 12.5x |
| 10.8x |
| FCF Yield |
| 7.8% |
| 8.9% |
| 8.9% |