Want to see WOOF full AI Analyst Report?
Top Page
Petco Health and Wellness Company
(NASDAQ:WOOF)
Select Model
Select Model
Rating:59Neutral
Price Target:
$2.50
▼(-9.42% Downside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by improving financial performance (especially stronger cash flow) and a generally positive earnings-call outlook with reaffirmed guidance and ongoing debt reduction. These positives are tempered by a weak technical setup (price below key moving averages with bearish momentum) and only middling valuation support given the provided P/E and no dividend yield.
Positive Factors
Cash Generation and Debt Reduction
Improving free cash flow gives Petco greater capacity to fund operations, invest in stores and services, and reduce debt internally. Recent debt paydown also lowers financial pressure over time, although maintaining this cash conversion through different retail cycles remains important.
Negative Factors
Thin Profitability and Limited Growth
Very thin profitability leaves limited protection against cost inflation, promotional activity, or demand softness. Broadly flat revenue also suggests the recent improvement is stabilization rather than strong expansion, making sustained margin improvement necessary for earnings to become more resilient.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation and Debt Reduction
Improving free cash flow gives Petco greater capacity to fund operations, invest in stores and services, and reduce debt internally. Recent debt paydown also lowers financial pressure over time, although maintaining this cash conversion through different retail cycles remains important.
Read all positive factors
Petco Health and Wellness Company Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue from different business areas, highlighting which segments drive growth and profitability, and indicating potential areas of strategic focus or risk.
Breaks down revenue from different business areas, highlighting which segments drive growth and profitability, and indicating potential areas of strategic focus or risk.
Data provided by:
The Fly
The FlyPetco Health and Wellness Company (WOOF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$653.04M
Dividend YieldN/A
Average Volume (3M)2.45M
Price to Earnings (P/E)20.5
Beta (1Y)1.07
Revenue Growth-1.32%
EPS GrowthN/A
CountryUS
Employees29,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.11
Shares Outstanding248,628,570
10 Day Avg. Volume2,058,646
30 Day Avg. Volume2,449,838
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)0.65
Price to Sales (P/S)0.13
P/FCF Ratio4.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$3.45Price Target Upside25.00% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)0.25
Revenue Forecast (FY)$5.99B
Petco Health and Wellness Company Business Overview & Revenue Model
Company Description
Petco Health and Wellness Company, Inc. operates as an enterprise focused on enhancing the well-being of companion animals, their human guardians, and its own associates. The company offers a broad spectrum of services, including veterinary care (...
How the Company Makes Money
Petco primarily makes money by selling pet-related products and by providing recurring pet services. Its revenue is generally driven by: (1) Merchandise sales: retail and online sales of consumables (notably pet food and treats) and non-consumable...
Petco Health and Wellness Company Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call was predominantly positive. Petco delivered a second consecutive quarter of positive comparable sales, exceeded its normalized EBITDA outlook, generated strong cash flow, reduced debt and reaffirmed full-year guidance. Management also cited improving customer trends, veterinary growth, cat-category momentum, e-commerce recovery and encouraging store-format results. The principal negatives were the temporary sales impact from the Petco Perks relaunch, continued softness in the dog business, ongoing manageable supply-chain headwinds, slower-than-expected owned-brand progress and continued weakness in supplies.Positive Updates
Second Consecutive Positive Comparable Sales Quarter
Second-quarter net sales were $1.5 billion, up slightly from last year, with a 0.6% comparable-sales increase. This marked Petco's second consecutive quarter of positive comps.
Negative Updates
Membership Relaunch Temporarily Reduced Q2 Sales
The national Petco Perks rollout led to point redemption volumes that far exceeded initial projections. While this demonstrated strong customer engagement, it negatively affected second-quarter net sales, particularly in services. Management estimated the impact at mid-single-digit millions, based on sales tracking above the approximately 0.3% outlook before the rollout versus sales reported as approximately flat.
Read all updates
Q2-2026 Updates
Positive
Negative
Second Consecutive Positive Comparable Sales Quarter
Second-quarter net sales were $1.5 billion, up slightly from last year, with a 0.6% comparable-sales increase. This marked Petco's second consecutive quarter of positive comps.
Read all positive updates
Company Guidance
Petco affirmed its full-year outlook, continuing to expect net sales of flat to up 1.5% compared to last year and adjusted EBITDA to be between $415 million and $430 million. For the third quarter, it expects sales growth of 0.4% to 1% year over year and adjusted EBITDA to be between $100 million and $103 million; it now expects net interest expense to be about $122 million, depreciation and amortization about $200 million, capital expenditures of about $140 million, and net store closures between 15 and 20. Petco expects to complete its Hill's Science Diet Single Protein Dog Food Rolls rollout by year end, expects a positive impact from its new membership program to emerge in 2027, and remains on track to begin to open additional vet hospitals in 2027.Petco Health and Wellness Company Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.97B | 5.96B | 6.12B | 6.26B | 6.04B | 5.81B |
| Gross Profit | 2.32B | 2.31B | 2.32B | 2.35B | 2.43B | 2.43B |
| EBITDA | 338.28M | 343.24M | 215.29M | -971.83M | 407.75M | 452.22M |
| Net Income | 30.27M | 9.07M | -101.82M | -1.28B | 90.80M | 164.42M |
Balance Sheet | ||||||
| Total Assets | 5.17B | 5.17B | 5.19B | 5.36B | 6.61B | 6.50B |
| Cash, Cash Equivalents and Short-Term Investments | 293.50M | 256.74M | 165.76M | 125.43M | 201.90M | 211.60M |
| Total Debt | 1.48B | 2.86B | 2.96B | 3.04B | 3.13B | 3.05B |
| Total Liabilities | 3.96B | 4.01B | 4.08B | 4.18B | 4.23B | 4.24B |
| Stockholders Equity | 1.21B | 1.16B | 1.11B | 1.18B | 2.38B | 2.27B |
Cash Flow | ||||||
| Free Cash Flow | 308.20M | 186.95M | 49.68M | -9.88M | 67.98M | 119.11M |
| Operating Cash Flow | 435.84M | 314.05M | 177.67M | 215.72M | 346.00M | 358.21M |
| Investing Cash Flow | -165.09M | -124.56M | -123.90M | -207.44M | -320.32M | -237.08M |
| Financing Cash Flow | -106.30M | -101.75M | -8.75M | -85.35M | -33.84M | -18.78M |
Petco Health and Wellness Company Technical Analysis
Negative
2.76
Price Trends
2.63
Negative
2.66
Negative
2.74
Negative
Market Momentum
-0.11
Positive
33.85
Neutral
13.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOOF, the sentiment is Negative. The current price of 2.76 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.63, and above the 200-day MA of 2.74, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 33.85 is Neutral, neither overbought nor oversold. The STOCH value of 13.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOOF.
Petco Health and Wellness Company Risk Analysis
Petco Health and Wellness Company disclosed 68 risk factors in its most recent earnings report. Petco Health and Wellness Company 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
Petco Health and Wellness Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $7.34B | 35.00 | 49.51% | ― | 5.86% | 81.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $653.04M | 20.51 | 2.58% | ― | -1.32% | ― | |
48 Neutral | $287.62M | -11.87 | -37.30% | ― | 15.58% | 64.75% | |
47 Neutral | $74.71M | -2.34 | -39.54% | ― | -21.25% | -5.40% | |
45 Neutral | $8.84M | -6.93 | -8.00% | 58.25% | -14.38% | -615.84% | |
43 Neutral | $166.88M | -1.19 | -63.92% | ― | -10.81% | 33.07% |
* Consumer Cyclical Sector Average
WOOF
Petco Health and Wellness Company
2.27
-1.64
-41.94%
FLWS
1-800 Flowers
2.50
-2.05
-45.05%
NHTC
Natural Health Trends
1.03
-2.87
-73.56%
CHWY
Chewy
18.20
-21.34
-53.97%
BARK
BARK Inc Class A
8.46
-7.83
-48.06%
TDUP
thredUP
2.12
-6.84
-76.34%
Petco Health and Wellness Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
Petco Appoints Jeffrey Naylor to Board, Audit Chair
Positive
Aug 3, 2026
On July 31, 2026, board member Cameron Breitner resigned from Petco Health and Wellness Company’s Board of Directors and its committees, effective August 1, 2026, with the company stating his departure was not due to any disagreement over op...
Business Operations and StrategyExecutive/Board Changes
Petco Announces Planned Transition in HR Leadership
Neutral
Jul 17, 2026
On July 13, 2026, Petco Health and Wellness Company, Inc. announced that Chief Human Resources Officer Holly May notified Chief Executive Officer Joel Anderson of her decision to resign from the company for personal reasons. May is expected to rem...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Petco Stockholders Approve Equity Plan and Board Elections
Positive
Jul 1, 2026
On June 30, 2026, Petco stockholders approved an amendment to the company’s 2021 Equity Incentive Plan, increasing the pool of Class A common shares available for equity awards by 15,500,000, a move that enhances Petco’s capacity to us...
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.