Petmed Express Inc

Petmed Express Inc has a market capitalization of $48.15 million and a price-to-book ratio of 0.5, indicating a significant discount to its book value. The company holds $55.30 million in cash and equivalents, with no long-term debt, resulting in a debt-to-equity ratio of 0.0. This liquidity position is supported by a current ratio of 1.3, suggesting the company can meet its short-term obligations.

Profitability metrics are negative, with a return on equity of -5.19% and a return on assets of -2.95%. The company reported a net loss of $5.02 million and an operating loss of $3.84 million in the latest period. Gross profit of $24.30 million on $59.54 million in revenue indicates a gross margin of 40.9%, which is typical for the drug retail industry but insufficient to offset operating costs.

The company's revenue is concentrated in the United States and Canada, with no disclosed segment breakdown. This geographic concentration may expose the company to regional economic or regulatory risks. The lack of segment data limits visibility into the performance of different product lines or geographic regions.

Looking ahead, the company is expected to face continued challenges. Analysts have assigned a mean price target of $2.15, below the current market price of $2.25, and all recommendations are neutral (4.00 on a 1-5 scale). The company's free cash flow is negative at -$4.39 million, and capital expenditures of -$4.51 million suggest ongoing investment in operations. These trends indicate a need for careful capital management.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company has no long-term debt, which reduces financial leverage risk, but its operating cash flow of $4.32 million is insufficient to cover the net loss. The absence of dilution risk is a positive, but the company's negative net income and operating income raise concerns about long-term sustainability.

Recent events include the latest financial filing, which shows a continued decline in profitability. The company has not issued new shares recently, and there are no indications of upcoming equity offerings. The lack of analyst buy or strong-buy ratings suggests limited investor confidence in the company's near-term prospects.

Free cash flow improved significantly by 74.2% year-over-year to -$4.5 million in fiscal 2025.

Operating income surged 81.3% year-over-year in fiscal 2025, indicating improved operational efficiency despite losses.

The company maintains a zero long-term debt balance, providing financial flexibility compared to leveraged peers.

Analysts project an 8.3% upside to a mean price target of $2.15 from the current market price.

Net income improved by 16.0% year-over-year in fiscal 2025, narrowing the loss to -$6.3 million.

Operating and net margins rank in the bottom quartile of the Drug Retailers cohort, signaling poor profitability.

The company faces high credit risk and a current ratio of 0.84, indicating potential liquidity constraints.

Cash conversion is severely negative at -0.86, placing the company in the bottom quartile of its peer group.

Revenue $40.7M, −21,8% YoY; Operating income −2 226,4% YoY.

• ▍Revenue $40.7M, −21,8% YoY
• ▍Operating income −2 226,4% YoY
• ▍Net income −1 392,6% YoY
• ▍Free cash flow −8 153,5% YoY
• ▍Net margin -26.0%

Revenue $44.4M, −23,6% YoY; Operating income −1 612,6% YoY.

• ▍Revenue $44.4M, −23,6% YoY
• ▍Operating income −1 612,6% YoY
• ▍Net income −466,3% YoY
• ▍Free cash flow −435,6% YoY
• ▍Net margin -19.2%

Revenue $51.2M, −22,7% YoY; Operating income −878,2% YoY.

• ▍Revenue $51.2M, −22,7% YoY
• ▍Operating income −878,2% YoY
• ▍Net income −1 009,8% YoY
• ▍Free cash flow −807,4% YoY
• ▍Net margin -66.7%

Revenue $46.5M, −21,9% YoY; Operating income −57,0% YoY.

• ▍Revenue $46.5M, −21,9% YoY
• ▍Operating income −57,0% YoY
• ▍Net income −132,1% YoY
• ▍Free cash flow −172,5% YoY
• ▍Net margin -25.1%

Revenue $52.0M; Operating income -$450.0k.

• ▍Revenue $52.0M
• ▍Operating income -$450.0k
• ▍Net margin -1.4%

Revenue $58.0M; Operating income $554.0k.

• ▍Revenue $58.0M
• ▍Operating income $554.0k
• ▍Net margin 4.0%

Revenue $66.2M; Operating income $4.4M.

• ▍Revenue $66.2M
• ▍Operating income $4.4M
• ▍Net margin 5.7%

Revenue $59.5M; Operating income -$3.8M.

• ▍Revenue $59.5M
• ▍Operating income -$3.8M
• ▍Net margin -8.4%

Revenue $227.0M, −17,2% YoY; Operating income +81,2% YoY.

• ▍Revenue $227.0M, −17,2% YoY
• ▍Operating income +81,2% YoY
• ▍Net income +16,0% YoY
• ▍Free cash flow +74,2% YoY
• ▍Net margin -2.8%

Revenue $274.1M, +6,8% YoY; Operating income −234,9% YoY.

• ▍Revenue $274.1M, +6,8% YoY
• ▍Operating income −234,9% YoY
• ▍Net income −245,2% YoY
• ▍Free cash flow +18,0% YoY
• ▍Net margin -2.7%

Revenue $256.6M, −5,8% YoY; Operating income −75,1% YoY.

• ▍Revenue $256.6M, −5,8% YoY
• ▍Operating income −75,1% YoY
• ▍Net income −72,5% YoY
• ▍Free cash flow −350,9% YoY
• ▍Net margin 2.0%

Revenue $272.3M, −11,9% YoY; Operating income −35,4% YoY.

• ▍Revenue $272.3M, −11,9% YoY
• ▍Operating income −35,4% YoY
• ▍Net income −38,8% YoY
• ▍Free cash flow −159,2% YoY
• ▍Net margin 6.9%