Patterson Companies, Inc.

PDCO

Wholesale-Medical, Dental & Hospital Equipment & Supplies

Mkt Cap

$2.257B

PE

11.67

Debt

$456.5M

Cash

$124M

EV

$2.589B

FCF

-$819.5M

Market Cap

$2.257B

P/E Ratio

11.67

Debt

$456.5M

Cash

$124M

EV

$2.589B

FCF

-$819.5M

Charts data: {"Earnings":[{"time":"2015-04-24","value":223261000},{"time":"2016-04-29","value":187184000},{"time":"2017-04-28","value":170893000},{"time":"2018-04-27","value":200974000},{"time":"2019-04-26","value":82876000},{"time":"2020-04-24","value":-589367000},{"time":"2021-04-23","value":155109000},{"time":"2022-04-29","value":201714000},{"time":"2023-04-28","value":206598000}],"Sales":[{"time":"2015-04-24","value":4375020000},{"time":"2016-04-29","value":5386703000},{"time":"2017-04-28","value":5593127000},{"time":"2018-04-27","value":5465683000},{"time":"2019-04-26","value":5574523000},{"time":"2020-04-24","value":5490011000},{"time":"2021-04-23","value":5912066000},{"time":"2022-04-29","value":6499405000},{"time":"2023-04-28","value":6471471000}],"Net Margins":[{"time":"2015-04-24","value":0.05103085243038889},{"time":"2016-04-29","value":0.034749270564944826},{"time":"2017-04-28","value":0.030554106852928604},{"time":"2018-04-27","value":0.0367701529708181},{"time":"2019-04-26","value":0.01486692224608276},{"time":"2020-04-24","value":-0.10735260821881777},{"time":"2021-04-23","value":0.026236006160959637},{"time":"2022-04-29","value":0.031035764043016244},{"time":"2023-04-28","value":0.03192442645574708}],"Assets":[{"time":"2015-04-24","value":2947706000},{"time":"2016-04-29","value":3520804000},{"time":"2017-04-28","value":3507913000},{"time":"2018-04-27","value":3471664000},{"time":"2019-04-26","value":3269269000},{"time":"2020-04-24","value":2715350000},{"time":"2021-04-23","value":2751511000},{"time":"2022-04-29","value":2741630000},{"time":"2023-04-28","value":2879146000}],"Stockholders Equity":[{"time":"2015-04-24","value":1514123000},{"time":"2016-04-29","value":1441746000},{"time":"2017-04-28","value":1394433000},{"time":"2018-04-27","value":1461790000},{"time":"2019-04-26","value":1480507000},{"time":"2020-04-24","value":836444000},{"time":"2021-04-23","value":964671000},{"time":"2022-04-29","value":1042635000},{"time":"2023-04-28","value":1118535000}],"ROE":[{"time":"2015-04-24","value":0.14745235360667527},{"time":"2016-04-29","value":0.12983146823365557},{"time":"2017-04-28","value":0.12255375482364517},{"time":"2018-04-27","value":0.1374848644470136},{"time":"2019-04-26","value":0.0559781210085464},{"time":"2020-04-24","value":-0.7046102309299845},{"time":"2021-04-23","value":0.16078953342642208},{"time":"2022-04-29","value":0.19346559438346114},{"time":"2023-04-28","value":0.18470409955879788}],"ROA":[{"time":"2015-04-24","value":0.12668393659340518},{"time":"2016-04-29","value":0.09875954469490492},{"time":"2017-04-28","value":0.0820795726689915},{"time":"2018-04-27","value":0.06333821475811023},{"time":"2019-04-26","value":0.04212440150993999},{"time":"2020-04-24","value":-0.21069806838897379},{"time":"2021-04-23","value":0.07654230711779818},{"time":"2022-04-29","value":0.09711521977801527},{"time":"2023-04-28","value":0.09585168657650567}]}

Patterson Companies, Inc. engages in distribution of dental and animal health products in the United States, the United Kingdom, and Canada. The company operates through three segments: Dental, Animal Health, and Corporate segments. The Dental segment offers consumable products, including infection control, restorative materials, and instruments; basic and advanced technology and dental equipment; practice optimization solutions, such as practice management software, e-commerce, revenue cycle management, patient engagement solutions, and clinical and patient education systems. It also provides a range of related services comprising software and design services, maintenance and repair, and equipment financing. The Animal Health segment distributes biologicals, pharmaceuticals, vaccines, parasiticides, diagnostics, prescription and non-prescription diets, nutritional's, consumable supplies, equipment, and software, as well as value-added services. This segment also provides private label portfolio of products to veterinarians, producers, and retailers under the Aspen, First Companion, and Patterson Veterinary brands. The Corporate segment offers customer financing services; and sells other miscellaneous products. It serves dentists, laboratories, institutions, other healthcare professionals, veterinarians, other animal health professionals, production animal operators, and animal health product retailers. The company was formerly known as Patterson Dental Company and changed its name to Patterson Companies, Inc. in June 2004. Patterson Companies, Inc. was founded in 1877 and is headquartered in Saint Paul, Minnesota.

Sector

10-Q
10/28/23
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7/29/23
10-K
4/29/23
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7/28/18
10-K
4/28/18
10-Q
1/27/18

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 0.54%

Earnings Stability -12%

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.

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

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Net Margin	5.1%	3.5%	3.1%	3.7%	1.5%	-11%	2.6%	3.1%	3.2%	2.9%
ROA	13%	9.9%	8.2%	6.3%	4.2%	-21%	7.7%	9.7%	9.6%	9.2%
ROE	15%	13%	12%	14%	5.6%	-70%	16%	19%	18%	20%

What is the average Net Margin?

The average Net Margin over the past 5 years is +0.56%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.45%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +2.74%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.76%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +0.46%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +4.33%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Debt FCF	-	9.17	8.69	7.95	-61.71	-2.07	-0.91	-0.48	-0.64	-0.56
Debt Equity	0.48	0.73	0.74	0.74	0.52	0.71	0.72	0.47	0.47	0.47
MIN
Graham Stability	-	-	-	100%	44%	-390%	-	-	-	-390%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -0.56.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 4.05.

What is the Graham’s Stability?

Graham’s Stability measure stands at -3.89.

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.

Earnings growth has been increasing in past years.

Years	04-2016	04-2018	04-2020	04-2022	Trend
Revenue	2.7%	3.4%	5.6%	-0.43%	-1.3%
Net Income	1.4%	0.55%	-	2.4%	4%
Stockholders Equity	-3.6%	-5.2%	10%	7.3%	1.5%
FCF	-	-	-	-	28%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.44%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.29%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +0.55%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +3.96%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -5.21%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.52%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +28.27%.