Pets at home Share Chat (PETS)

Just bought my first tranche here, it looks oversold to me - tend to agree with JG here, PETS expanding and increasing market share and it is a niche service with a go to trusted brand so difficult for competitors to overcome - I see new branches opening around where I live and that gives me confidence, I know the brand well, we have 2 cats and are in there most weeks, service always very good as is their vet offering - I tend to buy what I know and what I see and I see good things with this brand - will add more on weakness

gla dyor etc

What are they talking about getting costs under control and seeing costs as headwinds?

It was slight weakness in accessories sales resulting in 4 million off the headline profit.

And threatening further downgrades if they don't, but still maintaining a price target well north of this.

Dirty games imo.

I've added today, they're a niche market, one could almost say not many competitors which is tick with Warren B.

Actually the share price went up yesterday marginally.

Why didn't it fall 4% yesterday if it was the update which was not too bad considering all external factors ?

"What is going on here?" I thought it was obvious.

They released a recent trading update which disappointed the market. Therefore the share price has gone down.

What is going on here?

Agree. These shares are undervalued.

As soon as the CMA has concluded their investigation the shares will spike up.

Why? Good progress has been made on the new internet site utilisatiing the synergies of a centralised distribution centre. Next is the new VET computer system to drive efficiencies.

RNS stated Full Year earnings of £132m (Profit before Tax). Therefore indicative eps is £105.6m /472.5m shares = 22.3p s x P/e ratio average over 10 years x 15.8p = 353p share price.

Some what undervalued to today's price.

Also hoping Zoetis in the US takes out PETS after conclusion of the CMA investigation this year There P/e ratio is 37.

Of course there is still this inquiry into Vet practices going on - anyone know when the results will be out?

Really quite good given the economic surroundings but it does require that one reads it. A PE of under 14 and cover of over 4% compares well with other retail shares e.g. Tesco at nearly 30 and less than 4, which I also gladly hold. This share is undervalued & suffers from "analysts" thinking it just sells petfood. The vet business under the same roof, open the same hours, is most important.

Not hopeful for tomorrow given how weak this is.

Great to see the pps still not far from the 300p level during these buybacks, long term these depressed levels are great for a buyback.

Anyone know what distates the volume with which they buyback each day? Some days of lower share price they seemingly bought back much less then others, I know there are maximum rules like x% of daily volume but those low days were well below the volume limits I expect.

Thank you for taking the time to message 🙂

The price increase since the interims is (I would have thought) down to the contents of the interims.

All things being equal when the x div day arrives the share price will drop by the value of the dividend.

Does anyone think this steady climb is due to the ex Div date drawing close or just some organic growth back up to its position prior to the vet pricing release. Thank you

Anyone watching as ROVR taken out by Blackstone, and now Musti by a group. They were also taken out at high valuations compared to Pets. Hope we dont get taken out for something measly like 400-450p...

RNS on Second Tranche of Share Buy Back programme to start.

Also update from HL has Forward price/earnings ratio of 12.9

and stated Average forward price/earnings ratio is 15.9....

so potentially +25% upside......

Comment below about cash reducing significantly, this is true but keep in mind about £75m was paid to reduced the (fairly small) debt pile significantly. Seeing as it’s SONIA+1.5% I believe, this is smart. I would say they should still push on withbuyback as it’s ‘only’ £25m but their guidance suggested still will remain highly cash generative now hiccups largely over.

Mr Picky,

The RNS was conveying an upbeat position despite all these one-off costs to consolidate systems and the Distribution Centre into Stafford this year and next year as well as being scored highly on the best place to work.

On an eps basis, they have maintained PBT at £136m. That equates to a figure after tax of £100.64m with eps at 21.13p on the current level of 476.4m shares.

If we take the last ten tear's p/e ratio of 15.8. Analysts can arrive at a £3.36 share price figure on Final results.

Good post "surprised"

A few other points that struck me.

* They provided a figure for the impact of the bungled transition to the new Stafford Distribution Centre "In total, we

estimate this period of disruption resulted in a c3% LFL drag on Retail sales, and we expect to incur extra logistics costs

in FY24 of £14m (£9m underlying and £6m non-underlying) as a result."

* Proposing a change of auditor from KPMG to Deloitte.

* Net cash balances have been reduced substantially (£54.7m to £12.1m) they say only "We expect to finish the year in a

net cash position". Is there really enough to pay for the £25m share buyback and maintain the interim dividend?

* The are cooperating with the Competition and Markets Authority's investigation into the UK veterinary sector and

boldly say " We

expect no impact on our growth strategy or ambitions, with the strength of our consumer proposition

underpinned by the high-quality growth the business is seeing and an increase in the number of new

consumers we are seeing switch to our business with older pets over recent months.

Not easy to say if all the bad news is in the price....if it is then they are a "weak buy".

Revenue rose 6.5% to GBP774.2 million from GBP727.2 million. Cost of sales increased 9.7% to GBP419.0 million from GBP382.1 million, while administrative expenses increased 9.6% to GBP248.6 million from GBP226.8 million.

The company maintained its interim dividend at 4.5 pence per share. It added that the first GBP25 million of its GBP50 million buyback programme has been completed, with the second GBP25 million tranche to start soon.

Pets At Home highlighted that it has transitioned its stores to the new Stafford distribution centre as it builds a new digital platform.

"The first half saw us move our store logistics operations into our new Stafford DC. This was the period of highest risk in our move to a single DC and the DC is now fulfilling deliveries to 100% of stores, with

availability having now normalised. However, in getting to this position, we experienced a period of disruption during Q2. From the early part of Q2, we saw a deterioration in our in-store availability from normal levels of around 95%, to around 80% at peak disruption," the company said.

Chief Executive Lyssa McGowan said: "As we stand today, through our point of peak investment, with the benefits of our new distribution centre and new digital platform still ahead of us, we look to the future with confidence that we can deliver our plan, to build the world's best pet care platform."

For the current financial year 2024, Pets At Home expects consumer sales to grow in line with its medium-term goal of 7% and expects an underlying pretax profit of GBP136 million, in line with current analyst consensus

What's not to like in that RNS ,onwards and upwards from here.

How can PETS reflect it's true value of P/e ratio 17 x eps 23.7p = £4.02?

Ok. Some distribution problems and unwarranted investigation into all VET practices in the UK ...I blame the government for launching the investigation. Then Jeremy Hunt asking me to put hard earned cash into UK companies...No Thank You! Constantly shorted and someone stealing my pension by driving the price down!!

The Results are out tomorrow.................. we all know the share price should be much higher than £2.89.

Yet another prime candidate for a UK company to be taken over!!

Https://www.proactiveinvestors.co.uk/companies/news/1034199/pets-at-home-to-be-the-good-boy-or-bad-dog-in-half-year-results-1034199.html

Agree, Short 5cum. Let's see them when Half Year results out next week.

P/E 17 x eps 23.7p = £4.02 for this year....

Let's see some pants on fire!

And so glad I have only a few UK shares!!!! Most of my money parked where i can make mnoney

Severely undervalued!!!

Short 5cum have got hold of this.

Hope their houses burn down

The sp was too high in fairness, but it's corrected now I think. Divi is looking better again. Time to take some small stakes here I think.