PetMed Express Inc (PETS)

PetMed Express Inc.: A Comprehensive Overview

Company Profile

History and Background

PetMed Express Inc. (PETS) is a leading online pharmacy and retailer of pet medications and other health products in the United States. Founded in 1996 by Marc Dubin, the company has grown from a small mail-order business to a multi-million dollar enterprise.

In 1999, PetMed Express went public on the NASDAQ stock exchange, raising $16 million to fuel its expansion. The company has since grown through strategic acquisitions, including 1-800-PetMeds in 2010 and Dr. Foster & Smith in 2016. Today, PetMed Express operates through two main subsidiaries: PetMed Express and Drs. Foster & Smith.

Core Business Areas

PetMed Express' core business areas include:

• Online Pharmacy: Prescription and non-prescription medications for dogs, cats, and horses.
• Retail: Pet supplies, such as food, treats, toys, and grooming products.
• Telehealth Services: Online consultations with licensed veterinarians.

Leadership Team and Corporate Structure

PetMed Express is led by a team of experienced executives, including:

• Menderes Akdag, CEO: Joined PetMed Express in 2022, bringing over 15 years of experience in e-commerce and omnichannel retailing.
• Craig Datz, CFO: Joined PetMed Express in 2023, previously served as CFO of J.Jill and Chico's FAS.
• Dave Yeager, COO: Joined PetMed Express in 2015, leading the company's operations and logistics.

The company's corporate structure includes a Board of Directors, which oversees the company's strategic direction and performance.

Top Products and Market Share

Top Products and Offerings

PetMed Express' top products include:

• Heartworm and Flea/Tick Prevention: Brand-name and generic medications for preventing heartworm disease and flea/tick infestations.
• Pain Relief Medications: Non-steroidal anti-inflammatory drugs (NSAIDs) and other pain relievers for dogs and cats.
• Antibiotics: Prescription antibiotics for various infections.
• Pet Food and Treats: A wide range of dry, wet, and raw food options, as well as treats and supplements.
• Grooming Products: Shampoos, conditioners, brushes, and other grooming supplies.

Market Share

PetMed Express is a leading player in the online pet pharmacy market, with an estimated market share of over 30% in the United States. The company also has a significant presence in the online pet supplies market, but its market share is smaller compared to other major players like Chewy and Amazon.

Product Performance and Market Reception

PetMed Express' products generally receive positive reviews from customers, with praise for their affordability, convenience, and wide selection. However, some customers have reported issues with shipping delays and customer service.

Total Addressable Market

The total addressable market (TAM) for PetMed Express is estimated to be over $30 billion, encompassing the combined size of the pet medication and pet supplies markets in the United States. This market is expected to grow steadily in the coming years, driven by increasing pet ownership and rising pet healthcare spending.

Financial Performance

Recent Financial Statements

In fiscal year 2023, PetMed Express reported revenue of $572.5 million, a 4.8% increase from the previous year. Net income was $22.8 million, compared to $21.2 million in 2022. The company's profit margin was 4.0%, and its earnings per share (EPS) was $0.42.

Year-over-Year Comparison

PetMed Express' revenue has grown steadily over the past few years, although the growth rate has slowed down in recent quarters. The company's profitability has also been relatively stable, with a slight increase in profit margin in 2023.

Cash Flow and Balance Sheet

PetMed Express has a strong financial position, with a healthy cash flow and a solid balance sheet. The company's cash and equivalents balance was $105.5 million at the end of fiscal year 2023, and its debt-to-equity ratio was 0.5.

Dividends and Shareholder Returns

Dividend History

PetMed Express has a history of paying dividends to shareholders, although the dividend payout ratio has been relatively low in recent years. The company's current annual dividend yield is 0.4%.

Shareholder Returns

Total shareholder returns for PetMed Express have been modest over the past year, with a 1-year return of around 4.5%. However, the company's 5-year and 10-year returns have been more impressive, at 35.4% and 103.2%, respectively.

Growth Trajectory

Historical Growth Analysis

PetMed Express has experienced steady growth over the past 5 to 10 years, driven by its online pharmacy and retail businesses. The company's revenue has grown at a compound annual growth rate (CAGR)