Petco Faces Flat Sales, Falling EPS, and High Debt

Yahoo Finance··Read original
2▲0 ▼1Impact / 5
Summary · why it matters

Petco's stock has dropped 14% over the past six months to $2.54, underperforming the S&P 500's 9% gain. The company's same-store sales have been flat over the last two years, indicating weak demand. Earnings per share declined by 34.5% annually over the past three years while revenue remained flat, reflecting profitability challenges. Petco also carries $2.78 billion in debt against only $166.8 million in cash, with a net-debt-to-EBITDA ratio of 6×, signaling high leverage risk.

Impact on assets 1

Consumer Discretionary▼ · 1 stocks