- 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.
For further details see:
PetIQ, Trupanion: Pet Care Industry Small Players Still Not Cheap Enough