Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nationwide pet pharmacy PetMed Express
With that in mind, let's take a closer look at PetMed's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Pompano Beach, Fla. (1996)|
|Market Cap||$329.5 million|
|Trailing-12-Month Revenue||$231.03 million|
CEO Menderes Akdag (since 2001)
CFO Bruce Rosenbloom (since 2001)
|Return on Equity (Average, Past 3 Years)||27.6%|
|Cash/Debt||$71.3 million / $0|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last year, feynmanshomeboy tapped PetMed as a true top dog: "Growth in sector this decade will come from prescriptions (and maybe even cuter outfits). The streamlined delivery of prescription drugs to customers in all 50 states will make this company a sector leader or an attractive acquisition."
In fact, PetMed boasts a rather robust three-year average operating margin of 16%. That's easily higher than that of increasingly fierce foes like Amazon (4.3%), PetSmart (7.3%), and Wal-Mart (5.9%).
CAPS member tekennedy elaborates on the bull case:
it is the industry leader in a very fragmented industry with scale benefits. This company competes primarily with vets, which constitute over 70% of the market. This is a difficult type of competitor as a large number of people will naturally just purchase their pet medications through them because the customer needs to get the prescription from them. ... Despite this [Petmed] has managed to become the largest (estimated 7% of market) player in the market, larger than all other mail order companies combined. ...
I expect over the long term the company should be able to continue to earn high returns on equity and continue to grow. In the short run they hit a small speed bump. The company's cost to acquire a new customer has increased due to higher advertising pricing. ... Although growth may diminish in the near term I expect the company to continue gaining share over the long term.
What do you think about PetMed, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Amazon and PetSmart are Motley Fool Stock Advisor picks. Wal-Mart is a choice of both Inside Value and Global Gains. The Fool owns shares of PetMed Express and Wal-Mart. Try any of our Foolish newsletter services free for 30 days.
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