Latest Ratios: P/E Ratio 72.2x · EV/EBITDA 10.3x · ROE 0.8%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $654M | $770M | $935M | $664M | $3.1B | $4.9B | $5.5B | — | — |
| Enterprise Value | $3.3B | $3.4B | $3.7B | $3.6B | $6.1B | $7.7B | $8.4B | — | — |
| P/E Ratio → | 72.24 | 84.86 | — | — | 34.53 | 29.52 | — | — | — |
| P/S Ratio | 0.11 | 0.13 | 0.15 | 0.11 | 0.52 | 0.84 | 1.11 | — | — |
| P/B Ratio | 0.56 | 0.66 | 0.84 | 0.56 | 1.31 | 2.15 | 2.67 | — | — |
| P/FCF | 3.50 | 4.12 | 18.82 | — | 45.93 | 40.77 | 50.29 | — | — |
| P/OCF | 2.08 | 2.45 | 5.26 | 3.08 | 9.02 | 13.56 | 20.42 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.57 | 0.61 | 0.57 | 1.00 | 1.32 | 1.70 | — | — |
| EV / EBITDA | 10.27 | 10.64 | — | — | 14.43 | 17.54 | 22.68 | — | — |
| EV / EBIT | 27.05 | 23.02 | 239.52 | — | 28.30 | 27.50 | 47.17 | — | — |
| EV / FCF | — | 18.04 | 75.04 | — | 89.04 | 64.59 | 76.79 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.7% | 38.7% | 38.0% | 37.6% | 40.2% | 41.8% | 42.8% | 43.0% | 43.4% |
| Operating Margin | 2.0% | 2.0% | 0.1% | -18.9% | 3.7% | 4.6% | 4.0% | 2.5% | -4.9% |
| Net Profit Margin | 0.2% | 0.2% | -1.7% | -20.5% | 1.5% | 2.8% | -0.5% | -2.2% | -9.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.8% | 0.8% | -8.9% | -71.8% | 3.9% | 7.6% | -2.0% | -16.0% | -64.9% |
| ROA | 0.2% | 0.2% | -1.9% | -21.4% | 1.4% | 2.6% | -0.4% | -1.7% | -8.4% |
| ROIC | 2.4% | 2.4% | 0.1% | -18.8% | 3.3% | 4.0% | 2.9% | 1.9% | -4.4% |
| ROCE | 3.0% | 3.0% | 0.2% | -24.0% | 4.1% | 5.0% | 3.7% | 2.3% | -4.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.46 | 2.46 | 2.66 | 2.57 | 1.32 | 1.35 | 1.46 | 8.36 | 5.06 |
| Debt / EBITDA | 9.02 | 9.02 | — | — | 7.47 | 6.95 | 8.13 | 16.51 | — |
| Net Debt / Equity | — | 2.24 | 2.51 | 2.46 | 1.23 | 1.26 | 1.41 | 8.10 | 4.77 |
| Net Debt / EBITDA | 8.21 | 8.21 | — | — | 6.99 | 6.47 | 7.83 | 15.99 | — |
| Debt / FCF | — | 13.93 | 56.22 | — | 43.11 | 23.82 | 26.50 | — | 55.53 |
| Interest Coverage | 1.12 | 1.12 | 0.11 | -7.77 | 2.10 | 3.62 | 0.81 | 0.44 | -0.88 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.90 | 0.90 | 0.85 | 0.86 | 0.99 | 1.02 | 0.89 | 0.84 | 1.40 |
| Quick Ratio | 0.38 | 0.38 | 0.28 | 0.24 | 0.36 | 0.38 | 0.27 | 0.28 | 0.54 |
| Cash Ratio | 0.23 | 0.23 | 0.15 | 0.11 | 0.20 | 0.20 | 0.13 | 0.18 | 0.33 |
| Asset Turnover | — | 1.15 | 1.18 | 1.17 | 0.91 | 0.89 | 0.81 | 0.72 | 0.89 |
| Inventory Turnover | 6.20 | 6.20 | 5.80 | 5.70 | 5.53 | 5.01 | 5.22 | 5.28 | 5.29 |
| Days Sales Outstanding | — | 2.80 | 2.41 | 2.59 | 3.00 | 3.50 | 3.10 | 2.59 | 2.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.4% | 1.2% | — | — | 2.9% | 3.4% | — | — | — |
| FCF Yield | 28.6% | 24.3% | 5.3% | — | 2.2% | 2.5% | 2.0% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $286M | $273M | $268M | $266M | $265M | $211M | $1.5B | $1.5B |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying WOOF stock.
Petco Health and Wellness Company, Inc.'s current P/E ratio is 72.2x. The historical average is 49.6x. This places it at the 67th percentile of its historical range.
Petco Health and Wellness Company, Inc.'s current EV/EBITDA is 10.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.3x.
Petco Health and Wellness Company, Inc.'s return on equity (ROE) is 0.8%. The historical average is -18.9%.
Based on historical data, Petco Health and Wellness Company, Inc. is trading at a P/E of 72.2x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Petco Health and Wellness Company, Inc. has 38.7% gross margin and 2.0% operating margin.
Petco Health and Wellness Company, Inc.'s Debt/EBITDA ratio is 9.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Leverage constrains strategic pivot
Metrics are mathematically derived from official filings.
Valuation Reflects Distress, Not Growth
Petco's P/E of 85.17x TTM versus a forward P/E of 18.42x suggests the market is pricing in a significant earnings recovery, yet the P/B of 0.66x indicates the equity is valued below its book value, reflecting deep skepticism about the company's ability to generate sustainable returns.
The extreme divergence between trailing and forward P/E multiples implies the market expects a dramatic earnings inflection, but the sub-1.0 P/B ratio suggests investors are not confident the company's asset base can generate adequate returns. Compared to peers like Chewy (P/B 20.23x) and IDEXX (P/B 26.90x), Petco trades at a severe discount, indicating the market views its integrated model as a liability rather than an asset. The EV/EBITDA of 10.64x appears moderate in isolation, but when viewed alongside the company's high leverage and thin margins, it suggests the enterprise value is being supported more by debt than equity value creation.
Gross Margin Recovery Fails to Translate
Despite gross margin expanding from 34.7% in 2024Q4 to 39.7% in 2026Q2, net margin remains at a razor-thin 2.6%, indicating that cost discipline in procurement is being consumed by the high fixed costs of the veterinary clinic network and corporate overhead.
The gross margin improvement suggests successful private-label penetration and better inventory management, but the operating margin of 3.2% reveals that the company's transformation costs are offsetting these gains. The net margin of 2.6% in the most recent quarter is an improvement from negative territory, but it remains insufficient to generate meaningful returns on the company's asset base. This margin structure indicates that Petco's profitability is highly sensitive to volume leverage, and any softness in same-store sales could quickly push the company back into losses.
Returns Barely Exceed Cost of Capital
ROIC has improved from -0.3% in 2024Q1 to 1.2% in 2026Q2, but remains well below the company's estimated weighted average cost of capital, suggesting that the business is still destroying value despite recent operational improvements.
The trajectory from negative to slightly positive ROIC indicates the company is moving in the right direction, but the absolute level of 1.2% is concerning given the capital-intensive nature of the retail and veterinary network. ROE of 3.3% in the latest quarter appears more respectable, but this is heavily influenced by the company's high leverage and negative retained earnings, which distort the equity base. The gap between ROIC and ROE suggests that financial engineering, rather than operational excellence, is driving the return metrics.
Deleveraging Progress Offset by Thin Coverage
While the debt-to-equity ratio has improved from 3.46 in 2025Q3 to 1.22 in 2026Q2, the interest coverage ratio of 1.55x indicates that debt service remains a significant burden, consuming a substantial portion of operating income.
The rapid deleveraging from 3.46x to 1.22x is a positive development, but the interest coverage ratio of 1.55x suggests that the company's operating income barely covers its interest obligations. This leaves minimal room for error if margins compress or revenue growth stalls. The D/EBITDA ratio of 15.02x, while improved from 50.69x in 2025Q3, remains elevated and indicates that the company's debt load is still high relative to its earnings power. Investors should monitor whether the company can sustain this deleveraging trajectory without sacrificing growth investments.
Working Capital Management Shows Strain
The cash conversion cycle of 17 days in 2026Q2 masks significant volatility in days inventory outstanding, which has fluctuated between 59 and 65 days over the past ten quarters, suggesting inconsistent inventory management that impacts cash flow predictability.
The relatively stable DSO of 2-3 days indicates efficient receivables collection, which is expected for a retail business. However, the volatility in DIO from 59 to 65 days suggests challenges in inventory management, potentially due to the mix of fast-moving consumables and slower-turning supplies. The DPO of 47 days indicates reasonable supplier payment terms, but the overall CCC of 17 days is being driven by inventory holding periods rather than payables management. This working capital structure requires careful monitoring, as inventory bloat could quickly consume cash flow.
The ROE Illusion in Leveraged Retail
The most commonly misapplied ratio to Petco is return on equity, which appears respectable at 3.3% but is artificially inflated by the company's high leverage and negative retained earnings, obscuring the true value destruction occurring at the operating level.
ROE is frequently used as a measure of management effectiveness, but in Petco's case, the metric is distorted by the company's capital structure. With a debt-to-equity ratio of 1.22 and negative retained earnings of $1.1 billion, the equity base is artificially depressed, making ROE appear higher than it would be for a conservatively financed company. A more appropriate metric would be ROIC, which at 1.2% reveals that the company is barely generating returns above its cost of capital. Analysts should focus on ROIC and free cash flow yield rather than ROE when evaluating Petco's true economic performance.