Patterson Companies, Inc.

Health Care
Medical Specialities
www.pattersoncompanies.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.02B
PE 13
Debt $450.40M
Cash $157.94M
EV $2.31B
FCF -$823.13M

Earnings

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Sales & Net Margins

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Earnings	$154.87M
EBIT	$224.80M
ROE	16%
ROA	8%
FCF	-$823.13M
Equity	$963.45M
Growth Stability	-389%
PE	13.04
PEG	0.76
PB	2.1
P/FCF	-2.45
P/S	0.31
Price/Cash	0.08
Debt/Equity	0.47
Debt/FCF	-0.55
Net Margins	1%
Gross Margins	21%
Op. Margins	3%
Earnings CAGR	1%
Sales Growth YoY	1%
Sales Growth QoQ	9%
Sales CAGR	3%
FCF CAGR	0%
Equity CAGR	-5%
Earnings Stability	0.01
Earnings Growth YoY	-33%
Earnings Growth QoQ	96%

Earnings CAGR 5Y	17%
Sales CAGR 5Y	4%
Equity CAGR 5Y	0%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
Equity CAGR 3Y	-3%
Market Cap	$2.02B
Revenue	$6.55B
Dividend Yield	5%
Payout Ratio	61%
Assets	$2.85B
Total Debt	$450.40M
Cash	$157.94M
Shares Outstanding	88.14M
EV	2.31B
Earnings Score	6%
Moat Score	77%
Safety Score	33%
Final Score	39%
Working Capital	497.58M
Current Ratio	1.37
Gross Profit	$1.36B
Shares Growth 3y	-4%
Equity Growth QoQ	1%
Equity Growth YoY	-9%

Assets & ROA

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Stockholders Equity & ROE

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Patterson Companies Inc is a leading dental distributor and wholesaler of consumable products and equipment operating through two business segments, Patterson Dental and Patterson Animal Health. The firm offers dental and veterinary practice management products, including office software products, and technical, financial, and educational services, primarily to two highly fragmented market segments throughout the U.S. and Canada. The company began as a dental distributor in 1877 and expanded to become a major supplier of animal health products to vets and production companies through the acquisition of Animal Health International in 2015. Patterson also has a presence in the U.K. animal health market.

SEC Filings

Direct access to Patterson Companies, Inc. (PDCO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Oct 26
- 10-Q Jul 27
- 10-K Apr 27
- 10-Q Jan 27
2023
- 10-Q Oct 28
- 10-Q Jul 29
- 10-K Apr 29
- 10-Q Jan 28
2022
- 10-Q Oct 29
- 10-Q Jul 30
- 10-K Apr 30
- 10-Q Jan 29

Sector Comparison

How does Patterson Companies, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Patterson Companies, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 1%

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Patterson Companies, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Patterson Companies, Inc..

Years

Calculation mode

= -$8.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$823M	-$826M	-$829M	-$832M	-$835M	-$838M	-$841M	-$844M	-$848M	-$851M	-$854M	-$8.5B
DCF		-$751M	-$685M	-$625M	-$570M	-$521M	-$475M	-$433M	-$395M	-$361M	-$329M	-$3.3B
Value	-$8.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	TTM
Net Margins	5%	3%	3%	4%	1%	-11%	3%	3%	3%	3%	1%
ROA	-	10%	8%	6%	4%	-21%	8%	10%	10%	9%	8%
ROE	-	13%	12%	14%	6%	-70%	16%	19%	18%	19%	16%

Bad Net Margins (1.25%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	TTM
Debt over FCF	-	9.17	8.69	7.95	-61.71	-2.07	-0.91	-0.48	-0.64	-0.67	-0.55
Debt over Equity	0.48	0.73	0.74	0.74	0.52	0.71	0.72	0.47	0.47	0.57	0.47
Growth Stability	-	-	-	100%	44%	-389%	-	-	-	99%	-389%

Good Debt/FCF ratio (-0.55)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.47)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-389%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	CAGR 5Y
Revenue YoY growth	-	23%	4%	-2%	2%	-2%	8%	10%	-0%	1%	4%
Earnings YoY growth	-	-16%	-9%	18%	-59%	-811%	-126%	30%	2%	-10%	17%
Equity YoY growth	-	-5%	-3%	5%	1%	-44%	15%	8%	7%	-10%	0%
FCF YoY growth	-	-42%	3%	14%	-109%	2K%	165%	35%	-20%	5%	-