Want to see PETS full AI Analyst Report?
Top Page
Petmed Express
(NASDAQ:PETS)
Select Model
Select Model
Rating:44Neutral
Price Target:
$1.50
▼(-14.77% Downside)
Action:Reiterated
Date:09/29/26
Overall score is pressured primarily by weak financial performance (deep losses and significant cash burn) and a bearish technical setup (below major moving averages with negative MACD). The earnings call adds some support due to measurable operational progress and planned liquidity improvement via the sale-leaseback, but the lack of profitability and ongoing revenue declines keep the score in the lower range.
Positive Factors
Very low leverage
Minimal leverage reduces interest burden and refinancing exposure, giving PetMed Express greater flexibility to fund operations and execute its strategy. This financial capacity is valuable during the turnaround, although preserving it depends on improving profitability and stopping the current erosion of equity.
Negative Factors
Sharp revenue contraction
The decline in prescription sales directly pressures revenue scale and makes fixed operating costs harder to absorb. Persistent weakness in the company’s core category could limit customer growth, reduce purchasing leverage, and delay the return to sustainable profitability despite recent cost-control efforts.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Minimal leverage reduces interest burden and refinancing exposure, giving PetMed Express greater flexibility to fund operations and execute its strategy. This financial capacity is valuable during the turnaround, although preserving it depends on improving profitability and stopping the current erosion of equity.
Read all positive factors
Petmed Express (PETS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.48M
Dividend Yield9.4%
Average Volume (3M)109.59K
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth-19.67%
EPS Growth34.91%
CountryUS
Employees189
SectorHealthcare
Sector Strength45
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-1.38
Shares Outstanding21,678,913
10 Day Avg. Volume151,366
30 Day Avg. Volume109,591
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.65
Price to Sales (P/S)0.27
P/FCF Ratio-1.45
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit0.72
Enterprise Value/Ebitda-1.33
Forecast
1Y Price Target
$1.40Price Target Upside-20.45% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)$180.32M
Petmed Express Business Overview & Revenue Model
Company Description
PetMed Express, Inc., through its various subsidiaries, operates as a prominent pet pharmacy across the United States. The company provides a comprehensive range of both prescribed and over-the-counter animal medications, health-related items, and...
How the Company Makes Money
PetMed Express primarily makes money by selling pet health products directly to consumers through its online storefront and fulfillment operations. The company’s core revenue stream is product sales, including (1) prescription pet medications, whe...
Petmed Express Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic tone: management reported substantial progress on cost reductions, major technology and operational upgrades (SAP rollout, call center, fraud prevention), improved customer acquisition efficiency (70k new customers; CAC down 15%), higher recurring revenue mix (61.5% of sales), strategic white-label partnership with Rural King, and a sale-leaseback to unlock $37M of real estate value. However, notable challenges remain, including a 19.9% year-over-year revenue decline driven by weaker prescription sales, lower gross profit, an increased adjusted EBITDA loss, and an outstanding unsolicited acquisition proposal. On balance, the operational and financial improvements and strategic initiatives meaningfully outweigh the current headwinds, but execution risk on pending transactions and sustained revenue recovery remain important considerations.Positive Updates
Net Loss Narrowed Substantially
Net loss improved to $6.1 million (−$0.28 per diluted share) in Q1 FY27 compared to a net loss of $34.2 million (−$1.65 per diluted share) in the prior-year period, an ~82.1% reduction in the year-over-year net loss magnitude driven primarily by absence of last year's goodwill/trade name impairment and lower operating costs.
Negative Updates
Significant Year-over-Year Revenue Decline
Net sales declined 19.9% year-over-year to $41.0 million (from $51.2 million), primarily driven by continued softness in prescription medication sales.
Read all updates
Q1-2027 Updates
Positive
Negative
Net Loss Narrowed Substantially
Net loss improved to $6.1 million (−$0.28 per diluted share) in Q1 FY27 compared to a net loss of $34.2 million (−$1.65 per diluted share) in the prior-year period, an ~82.1% reduction in the year-over-year net loss magnitude driven primarily by absence of last year's goodwill/trade name impairment and lower operating costs.
Read all positive updates
Company Guidance
Management provided no formal numeric forward guidance but outlined a clear, metric‑driven path to sustainable profitability: they expect benefits from recent tech and operations investments (SAP ERP rolled out in May, new call‑center platform launched in June, Q4 fraud system) and a new freight agreement that can shave up to 2 days off West Coast deliveries to improve retention, while expanding white‑label partnerships (Rural King launched in July across >150 stores in 17 states). Key Q1 metrics they cited as the baseline for this plan include net sales of $41.0M (down 19.9% YoY from $51.2M) — the third consecutive quarter above $40M — gross profit $11.3M (27.6% margin), G&A $11.2M (‑13.5% YoY), advertising $4.2M (‑30.2% YoY), depreciation & amortization $2.1M, net loss $6.1M ($0.28/share) vs a loss of $34.2M ($1.65) a year ago, adjusted EBITDA loss $3.4M, cash $13.1M and no debt, recurring net sales 61.5% of gross (vs 57.6% a year ago), ~70k new customers acquired in Q1 with CAC down 15% to $60 (from $71), and an expected $37M sale‑leaseback of HQ/DC to close in ~120 days under a 10‑year lease to bolster financial flexibility.Petmed Express Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
14
Very Negative
| Breakdown | TTM | Mar 2026 | Jun 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 168.86M | 179.02M | 226.97M | 274.10M | 256.58M | 273.42M |
| Gross Profit | 40.04M | 40.83M | 69.14M | 77.71M | 71.01M | 75.34M |
| EBITDA | -21.76M | -22.03M | 6.71M | 783.00K | 10.99M | 29.81M |
| Net Income | -29.28M | -57.29M | -6.27M | -7.46M | 5.14M | 21.10M |
Balance Sheet | ||||||
| Total Assets | 63.76M | 81.19M | 148.70M | 169.88M | 170.00M | 176.32M |
| Cash, Cash Equivalents and Short-Term Investments | 13.08M | 21.41M | 54.72M | 55.30M | 104.09M | 111.08M |
| Total Debt | 414.00K | 535.00K | 996.00K | 1.45M | 995.00K | 0.00 |
| Total Liabilities | 40.77M | 52.25M | 63.57M | 73.15M | 60.04M | 34.13M |
| Stockholders Equity | 22.99M | 28.94M | 85.13M | 96.73M | 109.97M | 142.19M |
Cash Flow | ||||||
| Free Cash Flow | -27.77M | -33.01M | -395.00K | -194.00K | 22.54M | 16.75M |
| Operating Cash Flow | -23.81M | -28.39M | 4.72M | 4.32M | 27.80M | 18.50M |
| Investing Cash Flow | -3.96M | -4.62M | -5.11M | -40.67M | -10.26M | -1.75M |
| Financing Cash Flow | -274.00K | -299.00K | -181.00K | -12.44M | -24.54M | -24.38M |
Petmed Express Technical Analysis
Negative
1.76
Price Trends
1.75
Negative
1.86
Negative
2.32
Negative
Market Momentum
-0.12
Positive
15.96
Positive
5.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PETS, the sentiment is Negative. The current price of 1.76 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.75, and below the 200-day MA of 2.32, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 15.96 is Positive, neither overbought nor oversold. The STOCH value of 5.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PETS.
Petmed Express Risk Analysis
Petmed Express disclosed 36 risk factors in its most recent earnings report. Petmed Express reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Petmed Express Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $7.30B | 35.04 | 49.51% | ― | 5.86% | 81.66% | |
64 Neutral | $16.20B | 16.36 | 39.30% | 3.02% | 3.98% | -5.90% | |
59 Neutral | $627.26M | 19.69 | 2.58% | ― | -1.32% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $6.32M | -0.30 | -7.02% | ― | -8.84% | 8.50% | |
47 Neutral | $73.35M | -2.24 | -39.54% | ― | -21.25% | -5.40% | |
44 Neutral | $29.48M | -0.96 | -108.76% | 9.40% | -19.67% | 34.91% |
* Healthcare Sector Average
PETS
Petmed Express
1.31
-1.23
-48.43%
TSCO
Tractor Supply
32.29
-20.16
-38.43%
CHWY
Chewy
18.14
-19.49
-51.79%
BQ
Boqii Holding
0.75
-10.80
-93.48%
BARK
BARK Inc Class A
8.17
-7.43
-47.62%
WOOF
Petco Health and Wellness Company
2.22
-1.42
-39.09%
Petmed Express Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
PetMed Express Amends Plan for New CEO Equity Awards
Positive
Sep 28, 2026
On September 27, 2026, PetMed Express, Inc. amended its 2024 Inducement Incentive Plan to increase the shares reserved for issuance by 500,000, bringing the total to 850,000 shares. The change preserves all other terms of the plan, which remains c...
Business Operations and StrategyExecutive/Board Changes
PetMed Express adds human capital expert to board
Positive
Sep 21, 2026
On September 17, 2026, PetMed Express expanded its board to five directors by appointing human capital expert Tamar Elkeles as an independent director and Chair of the Compensation and Human Capital Committee. Announced on September 21, 2026, her ...
Business Operations and StrategyExecutive/Board Changes
PetMed Express Names Jeff Willard CEO Amid Transformation
Positive
Sep 17, 2026
PetMed Express announced on September 17, 2026, that its board has appointed consumer and ecommerce veteran Jeff Willard as Chief Executive Officer, President, and director, effective September 28, 2026, succeeding Leslie C.G. Campbell, who has se...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
PetMed Express Shareholders Expand Incentive Plan And Governance
Positive
Aug 12, 2026
On August 11, 2026, PetMed Express shareholders approved an amendment to the company’s 2024 Omnibus Incentive Plan to increase the shares of common stock reserved for issuance by 1,800,000, expanding the equity pool available for employee an...
Business Operations and StrategyPrivate Placements and Financing
PetMed Express Announces Headquarters Sale-Leaseback Transaction
Positive
Jul 23, 2026
On July 23, 2026, PetMed Express’ real estate subsidiary agreed to sell its headquarters and distribution center properties at 410 and 420 South Congress Avenue in Delray Beach, Florida, to Redfearn Capital Acquisitions for $37 million, with...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.