Petco Health and Wellness Company, Inc. (WOOF) AI Stock Analysis

Petco Health and Wellness Company, Inc. is a pet health and wellness provider offering veterinary care, grooming, training, tele-health, Vital Care, and pet health insurance services. Founded in 1965 and headquartered in San Diego, California, Petco operates approximately 1,500 locations across the United States, Mexico, and Puerto Rico, including approximately 200 in-store veterinary hospitals and Vetco mobile clinics. The company also reaches customers through digital platforms including petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com, supplying pet consumables, supplies, and companion animal services.

Over the five fiscal years from FY2021 to FY2026, Petco posted a revenue CAGR of 3.9%. Annual revenue reached $6.26B in FY2024 before falling 2.2% in FY2025 to $6.12B and declining 2.5% in FY2026 to $5.96B. Operating margin recovered to 2.0% in FY2026 from -18.9% in FY2024, when the company recorded net income of -$1.28B. For FY2026, net income reached $9.1M with EPS of $0.17. Over the trailing twelve months ended July 31, 2026, revenue was $5.97B with an operating margin of 3.2% and a profit margin of 0.5%, supported by quarterly earnings growth of 160.0% year-over-year.

As of July 31, 2026, Petco held $293.5M in cash and short-term investments alongside total debt of $1.48B, resulting in net debt of $1.18B. Shareholders' equity was $1.21B, representing a debt-to-equity ratio of 1.22 and a current ratio of 0.90 against total assets of $5.17B. In FY2026, operating cash flow reached $314.1M and free cash flow was $187.0M, while capital expenditures totaled $127.1M. Over the past five years, Petco's share count increased 9.5%.

At a last close of $2.33 on October 16, 2026, Petco trades at a market capitalization of $667.4M and an enterprise value of $3.19B. Its forward P/E of 7.0x is below the median of 14.1x for its US-listed Consumer Cyclical peers, while its trailing P/E of 23.3x sits above the peer median of 18.0x. Petco's EV/EBITDA of 9.8x trades below the peer median of 11.1x, and its price-to-sales ratio is 0.1x. Over the past 12 months, the stock dropped 35.1%, underperforming the S&P 500's return of 16.8%.

Wall Street analysts hold 1 Strong Buy, 1 Buy, 8 Hold, 2 Sell, and 0 Strong Sell ratings on Petco. The mean price target of $3.47 implies 48.9% upside compared to the last close of $2.33. For the fiscal year ending January 31, 2027, consensus estimates project revenue of $5.99B and EPS of $0.26, which represents 35.6% projected EPS growth. Petco beat EPS estimates in 2 of the past 4 quarters, with its next earnings report scheduled for November 24, 2026.

This page is an AI-written research summary of Petco Health and Wellness Company, Inc. (WOOF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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