Fact based stock research
Pet Center Comércio e Participações (BOVESPA:PETZ3)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Pet Center Comércio e Participações stock research in summary

petz.com.br

ANALYSIS: With an Obermatt Combined Rank of 86 (better than 86% compared with investment alternatives), Pet Center Comércio e Participações (Specialty Stores, Brazil) shares have much better financial characteristics than comparable stocks. Shares of Pet Center Comércio e Participações are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives). But they show above-average growth (Growth Rank of 100) and are safely financed (Safety Rank of 59, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 86, is a strong buy recommendation based on Pet Center Comércio e Participações's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Pet Center Comércio e Participações exhibits low value (Obermatt Value Rank of 47), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 100). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 59) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	47
Growth Rank	100
Safety Rank	59
Combined Rank	86

Country	Brazil
Industry	Specialty Stores
Index	BOVESPA
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Pet Center Comércio e Participações

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	11	65	47
GROWTH
GROWTH	n/a	65	19	100
SAFETY
SAFETY	n/a	11	58	59
SENTIMENT
SENTIMENT	n/a	51	9	^new
360° VIEW
360° VIEW	n/a	15	24	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Pet Center Comércio e Participações is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	11	65	47
GROWTH
GROWTH	n/a	65	19	100
SAFETY
SAFETY	n/a	11	58	59
COMBINED
COMBINED	n/a	7	38	86

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Pet Center Comércio e Participações the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 47 (worse than 53% compared with alternatives), Pet Center Comércio e Participações shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Pet Center Comércio e Participações. Price-to-Sales (P/S) is 64, which means that the stock price compared with what market professionals expect for future sales is lower than for 64% of comparable companies, indicating a good value concerning Pet Center Comércio e Participações's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 87% of alternatives (13% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 15 are lower than average (dividends are expected to be lower than 85% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 34, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 47, is a hold recommendation based on Pet Center Comércio e Participações's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Pet Center Comércio e Participações may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	n/a	22	62	64
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	n/a	16	67	34
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	n/a	32	91	87
DIVIDEND YIELD
DIVIDEND YIELD	n/a	13	15	15
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	n/a	11	65	47

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Pet Center Comércio e Participações; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 100 (better than 100% compared with alternatives) for 2024, Pet Center Comércio e Participações shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Pet Center Comércio e Participações. Sales Growth has a value of 86, which means that, currently, professionals expect the company to grow more than 86% of its competitors. The same is valid for Profit Growth with a value of 86 and for Capital Growth with 96. In addition, Stock Returns had an above-average rank value of 75, which means they have been higher than 75% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 100, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Pet Center Comércio e Participações exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	n/a	97	86	86
PROFIT GROWTH
PROFIT GROWTH	n/a	61	14	86
CAPITAL GROWTH
CAPITAL GROWTH	n/a	55	41	96
STOCK RETURNS
STOCK RETURNS	n/a	13	7	75
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	n/a	65	19	100

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Pet Center Comércio e Participações.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 59 (better than 59% compared with alternatives), the company Pet Center Comércio e Participações has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Pet Center Comércio e Participações is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Pet Center Comércio e Participações.Leverage is at 58, meaning the company has a below-average debt-to-equity ratio. It has less debt than 58% of its competitors.Refinancing is at a rank of 80, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 80% of its competitors. Liquidity is at 12, meaning that the company generates less profit to service its debt than 88% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 59 (better than 59% compared with alternatives), Pet Center Comércio e Participações has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Pet Center Comércio e Participações more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	n/a	16	64	58
REFINANCING
REFINANCING	n/a	31	91	80
LIQUIDITY
LIQUIDITY	n/a	18	8	12
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	n/a	11	58	59

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Pet Center Comércio e Participações and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	90	43	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	18	10	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	5	10	^new
MARKET PULSE
MARKET PULSE	n/a	76	58	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	51	9	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Pet Center Comércio e Participações.
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