Petco Health and Wellness Company, Inc. (WOOF) valuation at a glance
- Price
- $2.35
- Forward P/E
- 8.7×
- Market cap
- $584M
- P/S (TTM)
- 0.1×
CompaniesWOOF
WOOF
Petco Health and Wellness Company, Inc.
Consumer Cyclicalpet retailveterinary servicesdeleveragingsponsor-controlled
Overview
$2.35-1.3%
Market Cap
$584M
SEC filings
P/E (TTM)
19.3×
SEC filings
Rev Growth YoY
–
SEC filings
Gross Margin
38.8%
SEC filings
FCF Yield
40.7%
Calculated from SEC filings
Fair Value
Not established
yfinance
Conviction
3/5Sponsor-controlled pet retailer trading near book with comps back to positive, $170M of voluntary debt prepayments and a reaffirmed FY26 outlook.
Research Depth
ScreeningDeep ResearchFull Model
Updated 1d ago
Quality Snowflake
Overall 65/100
Value4/4
Future1/1
Past4/4
Health1/4
Dividend0/1
Each axis scores the checks for which data is available (filled = pass, hollow = no data). Computed from the sourced metrics on this page, not a third-party rating.
Thesis
Petco operates roughly 1,400 US pet care centers, about 300 in-store veterinary hospitals and a Mexico joint venture (10-K filed 2026-03-13). It screens as deep value because the business has stabilized while the shares sit near a 52-week low: fiscal 2025 net sales were $5.96 billion, net income $9.1 million after a $101.8 million loss in fiscal 2024, and Adjusted EBITDA rose from $336.5 million to $408.2 million (10-K). Q2 2026 (13 weeks to Aug 1, 2026) delivered a second straight positive comp (+0.6%), operating income of $47.8 million, net income of $38.7 million and Adjusted EBITDA of $122.2 million, and management reaffirmed FY26 Adjusted EBITDA guidance of $415 to $430 million (10-Q filed 2026-09-04, 8-K 2026-09-02). The February 2026 refinancing pushed maturities to 2031, and $170 million has been voluntarily prepaid in nine months. The strongest counter-evidence: comps are barely positive after -1.6% in fiscal 2025, the store base is shrinking (15 to 20 net closures guided), roughly $1.5 billion of secured debt costs above 8%, and CVC/CPP control the vote. Confirmation would be sustained positive comps through Q3 and Q4, leverage moving toward the stated 2x target, and free cash flow growing year over year.
Bull Case
DeleveragingThe 10-Q filed 2026-09-04 reports total debt of about $1.48 billion versus $1.59 billion a year earlier, a $75.0 million voluntary term loan prepayment in September 2026 and $170 million of prepayments over nine months, with a stated leverage target of 2x net debt to Adjusted EBITDA.
Profit recoveryFiscal 2025 Adjusted EBITDA rose to $408.2 million from $336.5 million and net income turned to $9.1 million from a $101.8 million loss (10-K filed 2026-03-13), and Q2 2026 Adjusted EBITDA grew to $122.2 million from $113.9 million (10-Q filed 2026-09-04).
LiquidityLiquidity at August 1, 2026 was $781.1 million, comprising $293.5 million of cash and $487.6 million of ABL availability, with no ABL borrowings and covenant compliance stated (10-Q filed 2026-09-04).
Bear Case
Top lineQ2 2026 net sales were flat at $1.489 billion (+0.05%) and fiscal 2025 comparable sales fell 1.6%, with products sales down 3.6% year over year in fiscal 2025 and the US store count declining from 1,423 to 1,382 over two years (10-K filed 2026-03-13, 10-Q filed 2026-09-04).
Cost of debtThe Amended First Lien Term Loan ($897.8 million at Aug 1, 2026) prices at Term SOFR plus 4.25% (8.1% weighted average) and the $600.0 million Senior Secured Notes carry 8.25%, so guided FY26 net interest expense of about $122 million absorbs roughly 29% of the Adjusted EBITDA guidance midpoint (10-Q filed 2026-09-04, 8-K 2026-09-02).
GovernanceScooby Aggregator, LP (CVC and CPP Investments) holds 59.0% of Class A plus all Class B-1 shares, 64.4% of total voting power and 51.2% of director-election power, and Petco relies on Nasdaq controlled-company exemptions (DEF 14A filed 2026-05-14).
Key Metrics
Market Cap
$584M
SEC filings
Enterprise Value
$3.11B
Calculated from SEC filings
Revenue (TTM)
$5.97B
SEC filings
P/E (TTM)
19.3×
SEC filings
Forward P/E
8.7×
yfinance
P/S (TTM)
0.1×
SEC filings
P/B
0.6×
SEC filings
EV/EBITDA
9.5×
Calculated from SEC filings
PEG
–
Calculated from SEC filings
Revenue Growth
–
SEC filings
Gross Margin
38.8%
SEC filings
Operating Margin
2.2%
SEC filings
Net Margin
0.5%
SEC filings
Free Cash Flow
$238M
SEC filings
FCF Yield
40.7%
Calculated from SEC filings
Debt / Equity
2.3×
SEC filings
Current Ratio
0.9×
SEC filings
Short Interest
20.7%
SEC filings
Institutional Own.
–
SEC filings
Insider Own.
3.3%
SEC filings
Shares Out.
248.6M
SEC filings
Float
91.2M
SEC filings
Valuation
Price vs Fair Value
Now $2.35
DCF Summary
DCF awaiting Phase 2+
Discounted cash-flow model is built once research reaches the deep-research stage.
Historical Multiples
Multiple history pending
This section is being deepened.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| WOOF | $687M | 24.0× | 0.1× | 9.6× | 0.0% | 39.0% | 1.0% |
| CHWY | $8.38B | 32.1× | 0.6× | 20.7× | +7.0% | 30.0% | 2.0% |
| TSCO | $17.05B | 17.0× | 1.1× | 12.1× | +2.0% | 36.0% | 6.0% |
| PETS | $35M | – | 0.2× | – | -20.0% | 28.0% | -17.0% |
| WMT | $851.47B | 38.8× | 1.2× | 20.9× | +6.0% | 25.0% | 3.0% |
| TGT | $72.01B | 16.4× | 0.7× | 9.8× | +5.0% | 28.0% | 4.0% |
Financials
Income statement pending
Awaiting source-linked statement data.
Balance sheet pending
Awaiting source-linked statement data.
Cash flow pending
Awaiting source-linked statement data.
USD. 52/53-week fiscal year ending the Saturday closest to January 31; fiscal 2025 ended 2026-01-31 (10-K filed 2026-03-13). Latest quarter is Q2 FY26, 13 weeks ended 2026-08-01 (10-Q filed 2026-09-04). Adjusted EBITDA and free cash flow are company non-GAAP measures. Source: 10-Q ↗
Catalysts
Q3 FY26 results, late Nov to early Dec (unconfirmed timing)
Earningshigh relevance
Q3 2026 results versus guided 0.4% to 1.0% sales growth and $100 to $103 million Adjusted EBITDA
The 8-K of 2026-09-02 set Q3 outlook of 0.4% to 1.0% net sales growth and $100 to $103 million Adjusted EBITDA; a third consecutive positive comp would confirm the stabilization case, a miss would refute it. Date is an estimate; Q3 2025 was reported in early December.
10-Q for Q3, debt note
Corporate
Further voluntary term loan prepayments toward the 2x leverage target
The 10-Q filed 2026-09-04 discloses $170 million of prepayments in nine months and a 2x net debt to Adjusted EBITDA target; each additional prepayment lowers the roughly 8% cost of the term loan.
FY26 10-K and FY27 outlook
Earnings
Fiscal 2026 results against the reaffirmed $415 to $430 million Adjusted EBITDA outlook and 15 to 20 net store closures
The FY26 outlook (8-K 2026-09-02) assumes tariffs stay at Sept 2, 2026 levels and no further IEEPA refunds; the Q2 figure included a $6.8 million net tariff refund benefit that will not recur.
Risks
| Risk | Category | Severity | Probability | Impact on Thesis |
|---|---|---|---|---|
| Comparable sales fail to hold positive as the membership relaunch and store closures weigh on volume | Operational | High | Medium | Fiscal 2025 comps were -1.6% and Q2 2026 was only +0.6% after a points-redemption disruption (10-Q filed 2026-09-04); a return to negative comps would undercut the FY26 outlook and the deleveraging pace. |
| High fixed-cost secured debt of about $1.5 billion at roughly 8.1% to 8.3% | Financial | High | Medium | Guided net interest expense of about $122 million (8-K 2026-09-02) consumes a large share of Adjusted EBITDA; a downturn in EBITDA would push leverage away from the 2x target and the term loan is floating-rate above its hedges. |
| Competition from mass, grocery and e-commerce pet retailers | Competition | Medium | High | The 10-K filed 2026-03-13 lists online retailers, supermarkets, warehouse clubs and mass merchants as direct competitors; fiscal 2025 product sales fell 3.6% while services grew 2.6%. |
| Sponsor control and dual-class structure constrain minority influence | Governance | Medium | High | CVC and CPP Investments control 51.2% of director-election voting power through Scooby Aggregator and Class B-2 shares (DEF 14A filed 2026-05-14); strategic decisions, including any sale of the sponsors' stake, are outside minority holders' control. |
| Tariff and supply chain cost pressure on imported supplies | Market/Macro | Medium | Medium | The FY26 outlook assumes tariffs remain at Sept 2, 2026 levels and no further IEEPA refunds (8-K 2026-09-02); Q2 gross margin ex the $6.8 million refund benefit was about flat year over year. |
Technical Snapshot
52-Week Range
–$2.35–
RSI (14)
n/a
insufficient history
50-Day MA
–
insufficient history
200-Day MA
–
insufficient history
Avg Vol (30d)
vs average
Support Levels
Resistance Levels
Technical inputs: SEC filings. See the record-specific source notes for measurement basis.
Ownership & Insider Activity
Institutional Holdersvia Source-linked
Institutional holder details unavailable
This research record does not include a holder-level table.
Insider Activity
Controlled company. Scooby Aggregator, LP, whose ultimate members are CVC Pet LP (CVC Capital Partners funds) and CPP Investments, holds 145,924,140 Class A shares (59.0%) plus all 37,790,781 Class B-1 shares, giving 64.4% of total voting power and 51.2% of director-election power; CVC B-2 SPV and 9314601 B-2 SPV hold the 37,790,781 Class B-2 director-vote-only shares. All directors and executive officers as a group hold 16,729,047 Class A shares (6.5%); CEO Joel Anderson holds 4,775,108 (1.9%). Executive Chairman Glenn Murphy's GSSB Corporation bought 1,470,589 Class A shares at $1.70 in a May 2024 private placement with a multi-year holding commitment (DEF 14A filed 2026-05-14). Four Form 4s filed 2026-09-09 were code F tax withholding on RSU vesting at $2.52, not open-market transactions (U2 research file, 2026-09-10). No Rule 10b5-1 plans were adopted or terminated in Q2 (10-Q filed 2026-09-04).
Detailed insider transactions unavailable
This research record does not include a transaction-level table.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| WOOF | $687M | 24.0× | 0.1× | 9.6× | 0.0% | 39.0% | 1.0% |
| CHWY | $8.38B | 32.1× | 0.6× | 20.7× | +7.0% | 30.0% | 2.0% |
| TSCO | $17.05B | 17.0× | 1.1× | 12.1× | +2.0% | 36.0% | 6.0% |
| PETS | $35M | – | 0.2× | – | -20.0% | 28.0% | -17.0% |
| WMT | $851.47B | 38.8× | 1.2× | 20.9× | +6.0% | 25.0% | 3.0% |
| TGT | $72.01B | 16.4× | 0.7× | 9.8× | +5.0% | 28.0% | 4.0% |
Recognizable sector comparables. Source basis: SEC filings; lowest multiple in each column highlighted. Loss-making peers show no P/E.
Research Notes
2026-09-17SEC 10-Q
Q2 FY26: second positive comp, $75M prepayment after quarter end
For the 13 weeks ended August 1, 2026, net sales were $1,489.2 million (+0.05%), comparable sales +0.6%, gross margin 39.7%, operating income $47.8 million, net income $38.7 million and Adjusted EBITDA $122.2 million, all including a $6.8 million net IEEPA tariff refund benefit. Year-to-date operating cash flow was $130.6 million versus $70.4 million and free cash flow $60.8 million versus $9.9 million. In September 2026 the company voluntarily prepaid $75.0 million of the Amended First Lien Term Loan from cash (10-Q filed 2026-09-04).
2026-09-17SEC 10-Q
February 2026 refinancing pushed maturities to 2031 at a higher coupon
On February 2, 2026 the $1,500.0 million First Lien Term Loan (due March 2028) was replaced by a $900.0 million Amended First Lien Term Loan at Term SOFR plus 4.25% maturing February 2, 2031 and $600.0 million of 8.25% Senior Secured Notes due February 1, 2031, with an $11.8 million extinguishment loss. Weighted average term loan rate rose to 8.1% from 7.3%. The $546.0 million ABL matures March 29, 2029 and was undrawn at August 1, 2026 (10-Q filed 2026-09-04).
2026-09-17SEC 8-K
FY26 outlook reaffirmed; Q3 outlook set
The September 2, 2026 release reaffirmed FY26 net sales flat to +1.5%, Adjusted EBITDA $415 to $430 million, net interest expense about $122 million, capex about $140 million and 15 to 20 net store closures, and guided Q3 net sales growth of 0.4% to 1.0% with Adjusted EBITDA of $100 to $103 million. The stock rose after the print and then gave back the gain within four sessions, closing at $2.47 on 2026-09-09 (U2 research file) and $2.35 on 2026-09-16 (Yahoo chart).
Sources
Petco Health and Wellness Company, Inc. valuation questions
What is Petco Health and Wellness Company, Inc.'s forward P/E ratio?
Petco Health and Wellness Company, Inc. (WOOF) trades at a forward P/E of 8.7×, and 0.1× trailing sales.
What is Petco Health and Wellness Company, Inc.'s market cap?
Petco Health and Wellness Company, Inc. (WOOF) has a market capitalization (its market value, often searched as "net worth") of $584M, and an enterprise value of $3.11B.