WOOFPetco Health and Wellness Company, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.5×), but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 1% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WOOF?
Petco Health and Wellness Company, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.4 points above what the capital costs: growth creates value
- Operating margin
- 2.2%
Operating margin · Specialty Retail median 8.1% · 12 months to Q2 2026
- Cash conversion
- 3.55×
Cash conversion · 2.93× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.7%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 4.0% |
| FY2021 | 4.6% |
| FY2022 | 3.7% |
| FY2023 | −19% |
| FY2024 | 0.12% |
| FY2025 | 2.0% |
Details›
- Gross margin12 months to Q2 2026
- 39%
- Operating margin12 months to Q2 2026
- 2.2%
- Net margin12 months to Q2 2026
- 0.51%
- Free cash flow margin
- 4.0%
- Revenue, trailing twelve months
- $5.97B
- Free cash flow, trailing twelve months
- $238M
- Net income, trailing twelve months
- $30M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.