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Petmed Express Inc. (PETS) Stock Fundamental Analysis & AI Rating 2026

PETS Nasdaq Retail-Drug Stores and Proprietary Stores FL CIK: 0001040130
Recently Updated • Analysis: Apr 14, 2026 • SEC Data: 2025-12-31
STRONG SELL
88% Conf
Pending
Analysis scheduled

📊 PETS Key Takeaways

Revenue: $136.2M
Net Margin: -39.1%
Free Cash Flow: $-27.5M
Current Ratio: 0.89x
Debt/Equity: 0.00x
EPS: $-2.55
AI Rating: STRONG SELL with 88% confidence
Petmed Express Inc. (PETS) receives a STRONG SELL rating with 88% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $136.2M, net profit margin of -39.1%, and return on equity (ROE) of -162.4%, Petmed Express Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete PETS stock analysis for 2026.

Is Petmed Express Inc. (PETS) a Good Investment?

Claude

PETMED EXPRESS is in severe financial distress with a -39% net margin, negative operating cash flow of -$23.6M, and a critical liquidity crisis (0.89x current ratio). While modest YoY improvement in profitability shows some operational progress, the company remains deeply unprofitable with -$53M operating losses on $136M revenue, indicating fundamental business model challenges that threaten near-term viability.

Why Buy Petmed Express Inc. Stock? PETS Key Strengths

Claude
  • + No long-term debt minimizes financial leverage risk and restructuring complexity
  • + Net income and EPS improved 16-19% YoY demonstrating some operational progress toward profitability
  • + Gross margin of 26.6% proves core business model can be profitable with sufficient cost control or volume scaling

PETS Stock Risks: Petmed Express Inc. Investment Risks

Claude
  • ! Deeply unprofitable with -39% net margin and -39% operating margin indicating structural business model challenges
  • ! Negative operating cash flow of -$23.6M and free cash flow of -$27.5M mean company is burning capital at unsustainable rates
  • ! Critical liquidity crisis with current ratio of 0.89x and only $26.9M cash reserves relative to $27.5M annual cash burn

Key Metrics to Watch

Claude
  • * Operating cash flow trajectory - must turn positive to demonstrate business viability
  • * Operating margin progression - needs material improvement from -39% baseline to reach breakeven
  • * Cash burn rate and runway - critical given minimal cash buffer relative to operating losses

Petmed Express Inc. (PETS) Financial Metrics & Key Ratios

Revenue
$136.2M
Net Income
$-53.2M
EPS (Diluted)
$-2.55
Free Cash Flow
$-27.5M
Total Assets
$88.0M
Cash Position
$26.9M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

PETS Profit Margin, ROE & Profitability Analysis

Gross Margin 26.6%
Operating Margin -38.9%
Net Margin -39.1%
ROE -162.4%
ROA -60.5%
FCF Margin -20.2%

PETS vs Consumer Sector: How Petmed Express Inc. Compares

How Petmed Express Inc. compares to Consumer sector averages

Net Margin
PETS -39.1%
vs
Sector Avg 8.0%
PETS Sector
ROE
PETS -162.4%
vs
Sector Avg 18.0%
PETS Sector
Current Ratio
PETS 0.9x
vs
Sector Avg 1.5x
PETS Sector
Debt/Equity
PETS 0.0x
vs
Sector Avg 0.8x
PETS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Petmed Express Inc. Stock Overvalued? PETS Valuation Analysis 2026

Based on fundamental analysis, Petmed Express Inc. has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
-162.4%
Sector avg: 18%
Net Profit Margin
-39.1%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.8x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Petmed Express Inc. Balance Sheet: PETS Debt, Cash & Liquidity

Current Ratio
0.89x
Quick Ratio
0.66x
Debt/Equity
0.00x
Debt/Assets
62.8%
Interest Coverage
N/A
Long-term Debt
N/A

PETS Revenue & Earnings Growth: 5-Year Financial Trend

PETS 5-year financial data: Year 2025: Revenue $274.1M, Net Income $5.1M, EPS $0.25.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Petmed Express Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.25 reflects profitable operations.

PETS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-20.2%
Free cash flow / Revenue

PETS Quarterly Earnings & Performance

Quarterly financial performance data for Petmed Express Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $40.7M -$707.0K $-0.03
Q2 2026 $44.4M $2.3M $0.11
Q1 2026 $51.2M $3.8M $0.18
Q3 2025 $53.0M -$707.0K $-0.03
Q2 2025 $59.6M -$421.0K $-0.02
Q1 2025 $68.0M -$1.1M $-0.06

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Petmed Express Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$23.7M
Cash generated from operations
Capital Expenditures
$3.9M
Investment in assets
Dividends Paid
$24.0K
Returned to shareholders

PETS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Petmed Express Inc. (CIK: 0001040130)

📋 Recent SEC Filings

Date Form Document Action
Feb 5, 2026 10-Q pets-20251231.htm View →
Jan 23, 2026 4 xslF345X05/wk-form4_1769204244.xml View →
Jan 23, 2026 8-K pets-20260121.htm View →
Dec 19, 2025 10-Q pets-20250930.htm View →
Dec 19, 2025 10-Q pets-20250630.htm View →

Frequently Asked Questions about PETS

What is the AI rating for PETS?

Petmed Express Inc. (PETS) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PETS's key strengths?

Claude: No long-term debt minimizes financial leverage risk and restructuring complexity. Net income and EPS improved 16-19% YoY demonstrating some operational progress toward profitability.

What are the risks of investing in PETS?

Claude: Deeply unprofitable with -39% net margin and -39% operating margin indicating structural business model challenges. Negative operating cash flow of -$23.6M and free cash flow of -$27.5M mean company is burning capital at unsustainable rates.

What is PETS's revenue and growth?

Petmed Express Inc. reported revenue of $136.2M.

Does PETS pay dividends?

Petmed Express Inc. pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.

Where can I find PETS SEC filings?

Official SEC filings for Petmed Express Inc. (CIK: 0001040130) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PETS's EPS?

Petmed Express Inc. has a diluted EPS of $-2.55.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is PETS a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Petmed Express Inc. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is PETS stock overvalued or undervalued?

Valuation metrics for PETS: ROE of -162.4% (sector avg: 18%), net margin of -39.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

Should I buy PETS stock in 2026?

Our dual AI analysis gives Petmed Express Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PETS's free cash flow?

Petmed Express Inc.'s operating cash flow is $-23.7M, with capital expenditures of $3.9M. FCF margin is -20.2%.

How does PETS compare to other Consumer stocks?

Vs Consumer sector averages: Net margin -39.1% (avg: 8%), ROE -162.4% (avg: 18%), current ratio 0.89 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 14, 2026 | Data as of: 2025-12-31 | Powered by Claude AI