Pet Valu (TSX:PET) is a Markham-based company engaged in the retail and wholesale of products in
the food, accessories, treats and toys area for pets. This stock fell 3.5% in 2022 at the close
July 27. Its shares are up 19% year over year.
The COVID-19 pandemic has sparked renewed interest in pet ownership among a growing portion of the population.
population. Lockdowns have dragged on for months, which may have sparked the need for pet companions in
the House. Dog adoptions have been particularly robust during this period.
Unsurprisingly, the surge in pet adoptions has been a boon for retailers that sell pet products.
Fortune Business Insights estimated the global pet care market to be worth US$207 billion in 2020.
The researcher predicts that the global pet care market will reach US$325 billion in 2028. This
represent a CAGR of 5.6% over the forecast period.
This company is expected to release its next batch of results in the first half of August. In the first quarter of 2022, Pet Valu
achieved system-wide sales growth of 30% to $285 million. Meanwhile, adjusted EBITDA soared 29%
year over year to $46.8 million. This represented 21.9% of total revenue. On the operational side, Pet
Valu opened six new stores and acquired 66 stores through its acquisition of Chico.
Pet Valu shares currently have a price/earnings ratio of 19. This puts this stock in an attractive position.
valuable territory at the time of this writing. It offers a modest quarterly dividend of $0.06 per share,
representing a return of 0.75%.