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% |
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For further details see:
White Brook Capital - PetIQ: Guidance And Street Estimates Are Too Conservative