📊 WOOF Key Takeaways
Is Petco Health & Wellness Company, Inc. (WOOF) a Good Investment?
Petco is operationally insolvent with critical debt service failure: interest coverage of 0.2x means operating income covers only 20% of interest expense, indicating likely covenant violations and near-term refinancing crisis. Negative free cash flow (-$69.1M), liquidity stress (current ratio 0.85x), and unprofitability (-$15.1M net loss) compound an unsustainable capital structure ($1.5B debt on $1.2B equity).
Petco Health & Wellness Company, Inc. Key Strengths (WOOF)
- Gross margin of 38.4% demonstrates pricing power and brand value in pet wellness category
- Established market position with $1.5B annual revenue and recognized brand
- Positive operating income of $24.6M shows core retail operations retain profitability before debt burden
WOOF Stock Risks: Petco Health & Wellness Company, Inc. Investment Risks
- Interest coverage ratio of 0.2x is critical: company cannot service $1.5B debt from operations, creating imminent refinancing risk and covenant default probability
- Negative free cash flow of -$69.1M with negative operating cash flow indicates business is unprofitable and burning cash; unsustainable without capital injection or restructuring
- Liquidity crisis developing with current ratio 0.85x and quick ratio 0.29x; insufficient liquid assets to cover current obligations
Key Metrics to Watch
- Operating cash flow and free cash flow path to positive territory
- Debt refinancing activity and covenant compliance status
- Revenue trend stabilization and net margin recovery
Petco Health & Wellness Company, Inc. (WOOF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
WOOF Profit Margin, ROE & Profitability Analysis
WOOF vs Consumer Sector: How Petco Health & Wellness Company, Inc. Compares
How Petco Health & Wellness Company, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Petco Health & Wellness Company, Inc. Stock Overvalued? WOOF Valuation Analysis 2026
Based on fundamental analysis, Petco Health & Wellness Company, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Petco Health & Wellness Company, Inc. Balance Sheet: WOOF Debt, Cash & Liquidity
WOOF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Petco Health & Wellness Company, Inc.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $-4.78 indicates the company is currently unprofitable.
WOOF Revenue Growth, EPS Growth & YoY Performance
WOOF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.5B | -$11.7M | $-0.04 |
| Q3 2025 | $1.5B | $9.3M | $0.03 |
| Q2 2025 | $1.5B | $2.3M | $0.01 |
| Q1 2025 | $1.5B | -$11.7M | $-0.04 |
| Q3 2024 | $1.5B | -$16.7M | $-0.06 |
| Q2 2024 | $1.5B | -$14.6M | $-0.05 |
| Q1 2024 | $1.5B | -$1.9M | $-0.01 |
| Q3 2023 | $1.5B | $19.9M | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Petco Health & Wellness Company, Inc. Dividends, Buybacks & Capital Allocation
WOOF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Petco Health & Wellness Company, Inc. (CIK: 0001826470)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WOOF
What is the AI rating for WOOF?
Petco Health & Wellness Company, Inc. (WOOF) has an AI grade of D with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WOOF's key strengths?
Claude: Gross margin of 38.4% demonstrates pricing power and brand value in pet wellness category. Established market position with $1.5B annual revenue and recognized brand.
What are the risks of investing in WOOF?
Claude: Interest coverage ratio of 0.2x is critical: company cannot service $1.5B debt from operations, creating imminent refinancing risk and covenant default probability. Negative free cash flow of -$69.1M with negative operating cash flow indicates business is unprofitable and burning cash; unsustainable without capital injection or restructuring.
What is WOOF's revenue and growth?
Petco Health & Wellness Company, Inc. reported revenue of $1.5B.
Does WOOF pay dividends?
Petco Health & Wellness Company, Inc. does not currently pay dividends.
Where can I find WOOF SEC filings?
Official SEC filings for Petco Health & Wellness Company, Inc. (CIK: 0001826470) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WOOF's EPS?
Petco Health & Wellness Company, Inc. has a diluted EPS of $-0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is WOOF's fundamental grade?
Based on our AI fundamental analysis in June 2026, Petco Health & Wellness Company, Inc. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WOOF stock overvalued or undervalued?
Valuation metrics for WOOF: ROE of -1.3% (sector avg: 18%), net margin of -1.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is WOOF's AI grade for 2026?
Our dual AI analysis gives Petco Health & Wellness Company, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WOOF's free cash flow?
Petco Health & Wellness Company, Inc.'s operating cash flow is $-31.0M, with capital expenditures of $38.2M. FCF margin is -4.6%.
How does WOOF compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -1.0% (avg: 8%), ROE -1.3% (avg: 18%), current ratio 0.85 (avg: 1.5).