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Petmed Express Inc. (PETS) Fundamental Analysis & AI Grade 2026

PETS Nasdaq Retail-Drug Stores and Proprietary Stores FL CIK: 0001040130
Recently Updated • Analysis: Jun 4, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
95% Confidence
N/A
D
95% Conf
Pending
Analysis scheduled

📊 PETS Key Takeaways

Revenue: $179.0M
Net Margin: -32.0%
Free Cash Flow: $-33.0M
Current Ratio: 0.84x
Debt/Equity: 0.00x
EPS: $-2.74
AI Grade: D with 95% confidence
Petmed Express Inc. (PETS) receives a D fundamental grade with 95% confidence from our AI analysis based on SEC 10-K filings. With revenue of $179.0M, net profit margin of -32.0%, and return on equity (ROE) of -197.9%, Petmed Express Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete PETS stock analysis for 2026.

Is Petmed Express Inc. (PETS) a Good Investment?

Claude

PetMed Express is in severe financial distress with accelerating revenue decline (-21.1% YoY), massive operating losses (-$58.7M), and negative operating cash flow (-$28.4M), indicating the business model is broken. Liquidity ratios below 1.0 combined with ongoing cash burn suggest the company will exhaust its $21.4M cash reserves within 12-24 months without dramatic operational improvements.

Petmed Express Inc. Key Strengths (PETS)

Claude
  • + Positive gross margin of 28.1% indicates base business model has merit
  • + No long-term debt eliminates immediate solvency risk from maturity obligations
  • + Cash reserves of $21.4M provide near-term runway for operational adjustments

PETS Stock Risks: Petmed Express Inc. Investment Risks

Claude
  • ! Revenue declining 21.1% YoY with no stabilization evidence suggests structural market decline or competitive loss
  • ! Operating margin of -32.8% and net margin of -32.0% indicates severe operating leverage failure and cost structure misalignment
  • ! Negative operating cash flow of -$28.4M and FCF of -$33.0M means company is destroying shareholder value and burning reserves unsustainably
  • ! Current ratio of 0.84x and quick ratio of 0.58x indicate liquidity stress and potential inability to meet short-term obligations
  • ! Zero insider buying in 90 days suggests management has no confidence in turnaround prospects

Key Metrics to Watch

Claude
  • * Operating cash flow return to positive territory as prerequisite for viability
  • * Revenue stabilization and return to growth within 2-3 quarters
  • * Operating margin improvement and path to positive net income
  • * Monthly cash burn rate and runway until insolvency without strategic action
  • * Management announcements regarding restructuring, asset sales, or strategic alternatives

Petmed Express Inc. (PETS) Financial Metrics & Key Ratios

Revenue
$179.0M
Net Income
$-57.3M
EPS (Diluted)
$-2.74
Free Cash Flow
$-33.0M
Total Assets
$81.2M
Cash Position
$21.4M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

PETS Profit Margin, ROE & Profitability Analysis

Gross Margin 28.1%
Operating Margin -32.8%
Net Margin -32.0%
ROE -197.9%
ROA -70.6%
FCF Margin -18.4%

PETS vs Consumer Sector: How Petmed Express Inc. Compares

How Petmed Express Inc. compares to Consumer sector averages

Net Margin
PETS -32.0%
vs
Sector Avg 8.0%
PETS Sector
ROE
PETS -197.9%
vs
Sector Avg 18.0%
PETS Sector
Current Ratio
PETS 0.8x
vs
Sector Avg 1.5x
PETS Sector
Debt/Equity
PETS 0.0x
vs
Sector Avg 0.8x
PETS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Petmed Express Inc. Stock Overvalued? PETS Valuation Analysis 2026

Based on fundamental analysis, Petmed Express Inc. has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
-197.9%
Sector avg: 18%
Net Profit Margin
-32.0%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.8x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Petmed Express Inc. Balance Sheet: PETS Debt, Cash & Liquidity

Current Ratio
0.84x
Quick Ratio
0.58x
Debt/Equity
0.00x
Debt/Assets
64.4%
Interest Coverage
N/A
Long-term Debt
N/A

PETS Revenue & Earnings Growth: 5-Year Financial Trend

PETS 5-year financial data: Year 2025: Revenue $274.1M, Net Income $5.1M, EPS $0.25. Year 2026: Revenue $274.1M, Net Income -$7.5M, EPS $-0.37.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Petmed Express Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.37 indicates the company is currently unprofitable.

PETS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-18.4%
Free cash flow / Revenue

PETS Quarterly Earnings & Performance

Quarterly financial performance data for Petmed Express Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $40.7M -$707.0K $-0.03
Q2 2026 $44.4M $2.3M $0.11
Q1 2026 $51.2M $3.8M $0.18
Q3 2025 $53.0M -$707.0K $-0.03
Q2 2025 $59.6M -$421.0K $-0.02
Q1 2025 $68.0M -$1.1M $-0.06

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Petmed Express Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$28.4M
Cash generated from operations
Capital Expenditures
$4.6M
Investment in assets
Dividends Paid
$21.0K
Returned to shareholders

PETS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Petmed Express Inc. (CIK: 0001040130)

📋 Recent SEC Filings

Date Form Document Action
Jun 9, 2026 4 xslF345X06/ownership.xml View →
Jun 2, 2026 10-K pets-20260331.htm View →
Jun 2, 2026 8-K pets-20260602.htm View →
May 21, 2026 8-K pets-20260515.htm View →
Feb 5, 2026 10-Q pets-20251231.htm View →

Frequently Asked Questions about PETS

What is the AI rating for PETS?

Petmed Express Inc. (PETS) has an AI grade of D with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PETS's key strengths?

Claude: Positive gross margin of 28.1% indicates base business model has merit. No long-term debt eliminates immediate solvency risk from maturity obligations.

What are the risks of investing in PETS?

Claude: Revenue declining 21.1% YoY with no stabilization evidence suggests structural market decline or competitive loss. Operating margin of -32.8% and net margin of -32.0% indicates severe operating leverage failure and cost structure misalignment.

What is PETS's revenue and growth?

Petmed Express Inc. reported revenue of $179.0M.

Does PETS pay dividends?

Petmed Express Inc. pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.

Where can I find PETS SEC filings?

Official SEC filings for Petmed Express Inc. (CIK: 0001040130) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PETS's EPS?

Petmed Express Inc. has a diluted EPS of $-2.74.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is PETS's fundamental grade?

Based on our AI fundamental analysis in June 2026, Petmed Express Inc. has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is PETS stock overvalued or undervalued?

Valuation metrics for PETS: ROE of -197.9% (sector avg: 18%), net margin of -32.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

What is PETS's AI grade for 2026?

Our dual AI analysis gives Petmed Express Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PETS's free cash flow?

Petmed Express Inc.'s operating cash flow is $-28.4M, with capital expenditures of $4.6M. FCF margin is -18.4%.

How does PETS compare to other Consumer stocks?

Vs Consumer sector averages: Net margin -32.0% (avg: 8%), ROE -197.9% (avg: 18%), current ratio 0.84 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Jun 4, 2026 | Data as of: 2026-03-31 | Powered by Claude AI