Post by
retiredcf on Mar 28, 2022 7:56am
Another Assessment
PET increased its revenues by 20% for 2021 and grew its net profit margins from 3.3% in 2020 to 12.3% in 2021. Liquidity is good, it generates positive free cash flows, pays a dividend of 0.75%, but it has a high debt balance which has pushed its equity balance to be negative. Forward sales and earnings growth are expected to be strong, and its expected EPS growth rate of 38% for 2023 is encouraging. Valuations are reasonable, with a sales multiple of 2.6X and forward P/E of 22.5X. We think that PET has a lot of good qualities going for it, however, the balance sheet is somewhat weak. But overall, we would be comfortable owning PET today.
So said the team at 5iResearch. GLTA