FMP
Apr 2, 2024 12:42 PM - Davit Kirakosyan
Petco Health and Wellness (NASDAQ:WOOF) shares fell more than 9% pre-market today after BofA Securities analysts downgraded the company from Buy to Underperform and reduced the price target from $5.00 to $1.50.
The analysts expressed concerns over Petco's diminishing market competitiveness, noting a significant drop in market share from 7% in 2015 to 4% currently. This decline is attributed to customers shifting to online platforms like Amazon and Chewy, as well as broadline retailers like Walmart, which offer more convenience or better value.
The analysts anticipate Petco's financial performance to worsen in the first half of the year, continuing a trend of eleven consecutive quarters of declining profitability. Additionally, Petco's deceleration in opening new veterinary hospitals, a key strategy for boosting sales and standing out against competitors, is viewed as a negative indicator.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...