Pet Valu (TSX:PET) is a Markham-based company that is engaged in retailing and wholesaling products in
the pet foods, accessories, treats, and toys space. This stock has dropped 3.5% in 2022 as of close on
July 27. Its shares have climbed 19% year over year.
The COVID-19 pandemic sparked renewed interest in pet ownership among a growing section of the
population. Lockdowns stretched on for months, which may have sparked want for pet companions in
the home. Dog adoptions were particularly robust during this period.
Unsurprisingly, the surge in pet adoptions has been a boon for retailers that deal in pet products.
Fortune Business Insights estimated that the global pet care market was worth US$207 billion in 2020.
The researcher projects that the global pet care market will grow to US$325 billion in 2028. That would
represent a CAGR of 5.6% over the forecast period.
This company is set to release its next batch of earnings in the first half of August. In Q1 2022, Pet Valu
achieved system-wide sales growth of 30% to $285 million. Meanwhile, adjusted EBITDA climbed 29%
year-over-year to $46.8 million. That represented 21.9% of total revenues. On the operational side, Pet
Valu opened six new stores and acquired 66 stores through its acquisition of Chico.
Shares of Pet Valu currently possess a price-to-earnings ratio of 19. That puts this stock in attractive
value territory at the time of this writing. It offers a modest quarterly dividend of $0.06 per share,
representing a 0.75% yield.