Patterson Companies Inc.
Find Ratings ReportsPATTERSON COS INC's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. PATTERSON COS INC has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 11.78% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 1616.1 | 1600.85 |
EBITDA ($mil) | 92.37 | 97.13 |
EBIT ($mil) | 70.01 | 75.92 |
Net Income ($mil) | 47.7 | 53.93 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 124.0 | 147.29 |
Total Assets ($mil) | 2939.95 | 2941.99 |
Total Debt ($mil) | 894.98 | 739.96 |
Equity ($mil) | 971.48 | 1101.3 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 23.1 | 22.75 |
EBITDA Margin | 5.71 | 6.06 |
Operating Margin | 4.33 | 4.74 |
Sales Turnover | 2.23 | 2.17 |
Return on Assets | 6.59 | 6.67 |
Return on Equity | 19.96 | 17.84 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.43 | 1.57 |
Debt/Capital | 0.48 | 0.4 |
Interest Expense | 15.2 | 11.58 |
Interest Coverage | 4.61 | 6.56 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 90.09 | 97.71 |
Div / share | 0.26 | 0.26 |
EPS | 0.52 | 0.55 |
Book value / share | 10.78 | 11.27 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1131146.0 | 1003542.0 |
BUY. PATTERSON COS INC's P/E ratio indicates a significant discount compared to an average of 24.06 for the Merchant Wholesalers, Durable Goods subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.49 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.83. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, PATTERSON COS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PDCO 13.22 | Peers 24.06 | PDCO NM | Peers 17.73 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. PDCO is trading at a significant discount to its peers. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PDCO's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PDCO 11.04 | Peers 24.12 | PDCO 1.37 | Peers 3.31 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. PDCO is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PDCO trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PDCO 2.49 | Peers 6.83 | PDCO 1.50 | Peers -19.81 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PDCO is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PDCO is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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PDCO 0.37 | Peers 1.87 | PDCO 2.78 | Peers -0.87 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PDCO is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. PDCO has a sales growth rate that significantly exceeds its peers. |
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