📊 WOOF Key Takeaways
Is Petco Health & Wellness Company, Inc. (WOOF) a Good Investment?
Petco faces fundamental headwinds with declining revenues (-2.5% YoY) and deteriorating profitability despite a gross margin of 38.7%, resulting in a razor-thin 0.2% net margin. Critical concern: interest coverage ratio of 1.2x combined with 1.28x debt-to-equity leverage and current ratio below 1.0 creates financial fragility with minimal margin for operational underperformance.
Petco Health & Wellness Company, Inc. Key Strengths (WOOF)
- Positive operating cash flow of $314.1M and free cash flow of $187.0M demonstrate underlying business generates cash
- Decent gross margin of 38.7% indicates product pricing power and cost management at merchandising level
- Adequate liquidity position with $256.7M cash on hand
WOOF Stock Risks: Petco Health & Wellness Company, Inc. Investment Risks
- Revenue contraction of -2.5% YoY in competitive retail sector signals market share loss or weak demand
- Interest coverage ratio of 1.2x dangerously low - minimal buffer to service $1.5B debt if operations deteriorate further
- Current ratio of 0.90x and quick ratio of 0.38x indicate working capital stress and potential liquidity pressures
- Profitability metrics critically weak: 0.2% net margin and 0.8% ROE show company barely earning on shareholder capital
- High leverage (1.28x debt-to-equity) combined with thin margins creates financial inflexibility
Key Metrics to Watch
- Revenue trend reversal - must return to positive growth or negative momentum will persist
- Operating margin expansion - critical to improve from 2.0% given high fixed costs in retail
- Interest coverage ratio - must improve above 2.0x to indicate financial health; current 1.2x is unsustainable
- Cash conversion and free cash flow sustainability - verify $187M FCF is not dependent on working capital management
Petco Health & Wellness Company, Inc. (WOOF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
WOOF Profit Margin, ROE & Profitability Analysis
WOOF vs Consumer Sector: How Petco Health & Wellness Company, Inc. Compares
How Petco Health & Wellness Company, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Petco Health & Wellness Company, Inc. Stock Overvalued? WOOF Valuation Analysis 2026
Based on fundamental analysis, Petco Health & Wellness Company, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
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.
Petco Health & Wellness Company, Inc. Balance Sheet: WOOF Debt, Cash & Liquidity
WOOF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Petco Health & Wellness Company, Inc.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $-4.78 indicates the company is currently unprofitable.
WOOF Revenue Growth, EPS Growth & YoY Performance
WOOF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.5B | $9.3M | $0.03 |
| Q2 2025 | $1.5B | $2.3M | $0.01 |
| Q1 2025 | $1.5B | -$11.7M | $-0.04 |
| Q3 2024 | $1.5B | -$16.7M | $-0.06 |
| Q2 2024 | $1.5B | -$14.6M | $-0.05 |
| Q1 2024 | $1.5B | -$1.9M | $-0.01 |
| Q3 2023 | $1.5B | $19.9M | $0.07 |
| Q2 2023 | $1.5B | $13.5M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Petco Health & Wellness Company, Inc. Dividends, Buybacks & Capital Allocation
WOOF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Petco Health & Wellness Company, Inc. (CIK: 0001826470)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WOOF
What is the AI rating for WOOF?
Petco Health & Wellness Company, Inc. (WOOF) has an AI grade of C with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WOOF's key strengths?
Claude: Positive operating cash flow of $314.1M and free cash flow of $187.0M demonstrate underlying business generates cash. Decent gross margin of 38.7% indicates product pricing power and cost management at merchandising level.
What are the risks of investing in WOOF?
Claude: Revenue contraction of -2.5% YoY in competitive retail sector signals market share loss or weak demand. Interest coverage ratio of 1.2x dangerously low - minimal buffer to service $1.5B debt if operations deteriorate further.
What is WOOF's revenue and growth?
Petco Health & Wellness Company, Inc. reported revenue of $6.0B.
Does WOOF pay dividends?
Petco Health & Wellness Company, Inc. does not currently pay dividends.
Where can I find WOOF SEC filings?
Official SEC filings for Petco Health & Wellness Company, Inc. (CIK: 0001826470) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WOOF's EPS?
Petco Health & Wellness Company, Inc. has a diluted EPS of $0.03.
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 grade reflects both perspectives for balanced insights.
What is WOOF's fundamental grade?
Based on our AI fundamental analysis in June 2026, Petco Health & Wellness Company, Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WOOF stock overvalued or undervalued?
Valuation metrics for WOOF: ROE of 0.8% (sector avg: 18%), net margin of 0.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is WOOF's AI grade for 2026?
Our dual AI analysis gives Petco Health & Wellness Company, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WOOF's free cash flow?
Petco Health & Wellness Company, Inc.'s operating cash flow is $314.1M, with capital expenditures of $127.1M. FCF margin is 3.1%.
How does WOOF compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 0.2% (avg: 8%), ROE 0.8% (avg: 18%), current ratio 0.90 (avg: 1.5).