DCF Tool

PETQ

PetIQ Inc – Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
PetIQ is a leading pet medication and wellness company delivering a smarter way for pet parents to help their pets live their best lives through convenient access to affordable veterinary products and services. The company engages with customers through more than 60,000 points of distribution across retail and e-commerce channels with its branded and distributed medications, which is further supported by its own world-class medications manufacturing facility in Omaha, Nebraska. The company's national service platform, VIP Petcare, operates in over 3,400 retail partner locations in 41 states providing cost effective and convenient veterinary wellness services. PetIQ believes that pets are an important part of the family and deserve the best products and care.
Analysis Results
Intrinsic Value $63.15
Latest Price $15.13
Relative Value 76% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 29.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 29.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 50.4 46.6
2023 65.5 56.0
2024 85.0 67.3
2025 110 80.9
2026 143 97.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2400 million. This corresponds to a present value of 1500 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 348 million. Adding in the terminal value gives a total present value of 1850 million.

There are presently 29.3 million outstanding shares, so the intrinsic value per share is 63.15.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 298,689,000
Current Cash 79,406,000
Current Liabilities 98,102,000
Current Debt 8,350,000
Non-Cash Working Capital (NCWC) 129,531,000
Change in NCWC 13,995,000
EBIT 15,872,000
Tax Provision 3,869,000
Depreciation and Amortization 39,300,000
Capital Expenditure -31,270,000
Unlevered Free Cash Flow 37,897,000
Current Assets 242,296,000
Current Cash 33,456,000
Current Liabilities 101,067,000
Current Debt 7,763,000
Non-Cash Working Capital (NCWC) 115,536,000
Change in NCWC 26,578,000
EBIT -3,187,000
Tax Provision 52,216,000
Depreciation and Amortization 30,975,000
Capital Expenditure -22,392,000
Unlevered Free Cash Flow 31,974,000
Current Assets 185,423,000
Current Cash 27,272,000
Current Liabilities 73,014,000
Current Debt 3,821,000
Non-Cash Working Capital (NCWC) 88,958,000
Change in NCWC 9,542,000
EBIT 4,183,000
Tax Provision -3,309,000
Depreciation and Amortization 16,509,000
Capital Expenditure -10,276,000
Unlevered Free Cash Flow 19,958,000
Current Assets 207,721,000
Current Cash 66,360,000
Current Liabilities 64,196,000
Current Debt 2,251,000
Non-Cash Working Capital (NCWC) 79,416,000
Change in NCWC 26,477,000
EBIT 11,028,000
Tax Provision -661,000
Depreciation and Amortization 12,467,000
Capital Expenditure -7,178,000
Unlevered Free Cash Flow 42,794,000
Current Assets 108,875,000
Current Cash 37,896,000
Current Liabilities 18,191,000
Current Debt 151,000
Non-Cash Working Capital (NCWC) 52,939,000
Change in NCWC 7,923,000
EBIT 13,289,000
Tax Provision 3,970,000
Depreciation and Amortization 3,614,000
Capital Expenditure -4,131,000
Unlevered Free Cash Flow 16,219,108
Current Assets 56,537,000
Current Cash 767,000
Current Liabilities 13,075,000
Current Debt 2,321,000
Non-Cash Working Capital (NCWC) 45,016,000
Change in NCWC -1,040,000
EBIT 702,000
Tax Provision -756,000
Depreciation and Amortization 4,074,000
Capital Expenditure -2,041,000
Unlevered Free Cash Flow 1,695,000

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