Separately, TheStreet Ratings team rates PATTERSON COMPANIES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PATTERSON COMPANIES INC (PDCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PDCO's revenue growth has slightly outpaced the industry average of 16.7%. Since the same quarter one year prior, revenues rose by 18.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PDCO has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
- PATTERSON COMPANIES INC has improved earnings per share by 7.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PATTERSON COMPANIES INC increased its bottom line by earning $2.03 versus $1.93 in the prior year. This year, the market expects an improvement in earnings ($2.16 versus $2.03).
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Net operating cash flow has increased to $56.60 million or 22.67% when compared to the same quarter last year. Despite an increase in cash flow, PATTERSON COMPANIES INC's cash flow growth rate is still lower than the industry average growth rate of 37.35%.
- You can view the full analysis from the report here: PDCO Ratings Report